The equally-owned joint business has been developed through a $732 million investment. The new tie-up will have its headquarters in the Changsha Economic Zone, located in the center of the Chinese Hunan province.
The Guangzhou-Fiat venture will have three divisions: one that will assemble cars, one that will be dedicated to engine production and a research & development center. When the production starts, the business will have an annual output of 140,000 cars - this is scheduled to reach a figure of 250,000 units per year. The annual engine production output will debut at 220,000 units and will eventually be increased to 300,000 units per year.
The Fiat Linea will be the first car to be produced by the JV. The model was chosen as it is considered the most suitable Fiat vehicle for the Chinese market. The first “made in China” vehicles will enter the market in late 2011 and will be sold through the network of dealers that currently retails imported Fiat vehicles in the country. However, the Italian company plans to create its dedicated dealer network: these dealers will only sell Fiat cars, excluding the Guangzhou car from their offer.
Fiat has had previous attempts to conquer the Chinese market. The most recent one ended in 2007, when the Italian automotive producer dissolved its joint venture with the Nanjing Auto Chinese vehicle manufacturer.
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