Gasgoo.com writes today that Guangzhou will begin selling Fiat's vehicles in the domestic market in 2011, with the deal expected to receive the green light from the country's regulators later this month. Although the two companies haven't revealed the names of the models to be assembled in China, various reports indicated Linea plus a couple of different Alfa Romeo and Fiat vehicles are very likely to be built by Guangzhou.
The joint venture has already established plans on how to sell cars in China. According to the aforementioned source, the two companies will use the existing Chinese dealerships that are selling imported Fiats in the country. All dealers will be merged into a new dealership network that will focus their business on Fiat and Alfa Romeo brands. However, they won't sell cars produced by Guangzhou, the source noted.
Fiat and Guangzhou will also build a new factory in China that would require an investment of up to 400 million euros. Preliminary figures are pointing to an annual capacity of 140,000 cars and 220,000 engines, with output to be increased in the next few years to 250,000 cars and 300,000 engines.
"They've had discussions with Guangzhou Automobile and they're about to set up a factory in China," Sun Yngfu, director-general of European Affairs at China's commerce ministry, confirmed the negotiations between Fiat and Guangzhou back in July. "We're very interested in cooperation in the auto sector," Yngfu said.
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