WILL CHINA PRODUCE FIAT?

It seems as if China is taking over the world one industry at a time. They've dominated the wheel industry for a few years now and they mas soon also be producing Alfa Romeos? That’s the story according to Ward’s Auto, which cites a “well-placed” source. According to the informant, parent company Fiat SpA is almost ready to sign on the dotted line with Nanjing and Chery to assemble the Italian cars in the world’s fastest-growing automobile market. Hmmmm....an China manufactured Italian car? Wierd.

Fiat is apparently hoping to have Chery assemble the cars, but it already has a joint-venture agreement with Nanjing, which is slowing negotiations. If the deal with Chery is to go through, Fiat will likely have to divest its 50-percent stake in the existing JV partnership with Nanjing, a move which could happen soon.

Fiat hopes that it can begin producing some 30,000-35,000 Chinese Alfas in 2009 (startin with its 159 sedan), with the eventual possibility of exporting to other markets, including Mother Italy.

Source: Ward's Auto