will manufacture its Alfa Romeo 159 for the Chinese
market in a joint venture collaboration with Chery Automobiles
of China. Chery, based in the eastern city of Wuhu,
currently sells 10 models under its own badge and is
one of China's largest car exporters.
two companies announced having signed an agreement to
produce 175,000 Fiat and Alfa Romeo cars per year in
China from 2009 onwards, without disclosing any financial
SpA Chief Executive Sergio Marchionne, said the move
was part of a larger strategy to expand Alfa Romeo worldwide.
"The introduction of Alfa Romeo in China represents
an historical step, launching one of the most attractive
brands of the European car industry into the world's
fastest-growing automotive market," Marchionne
said in a statement.
SpA, of which Fiat Group Autos is a subsidiary, currently
has six joint ventures and nine wholly foreign owned
enterprises in China engaged in manufacturing and distribution
of cars, commercial vehicles, agricultural and construction
equipment and auto components.
The news comes a day after Fiat said it would source
100,000 1.6- and 1.8-liter engines a year from Chery
to power cars manufactured by Fiat in China and abroad.
Fiat said the deal would mark an historical step into
"the world's fastest growing automotive market",
Chery said the move would make its own brand more competitive
has been struggling to turn around its operations in
China. Its operation with Nanjing Automobile Corp remains
has been making losses with sales at the end of June
at 31,000 against the targeted sales of 300,000 vehicles
in China by 2010.