Together, they will build 140,000 Chinese Fiat cars per year.

The Western automakers that have interest in the Chinese automobile market are many. Since Europe and the U.S. no longer seem to want new cars, the Chinese market is still popular.

In particular for GM and VW, the Chinese car interest has been a bright spot recently. Fiat, with Sergio Marchionne in charge, has a stated that they want to become a global car company and a major step forward is to establish themselves in China. It will now happen with the help of Guangzhou Automobile Industry Group.

The two car manufacturers have agreed to jointly develop cars and engines from the year 2011. The total invested amount in the new factory that will be built in Changsha, capital of Hunan province, is 400 million Euro.

Fiat, which has just taken over 20 percent of Chrysler, indicated that the cooperation will result in approximately 140 000 Fiat cars built in China each year. In addition, 220 000 engines will be installed in the factory. Eventually, the rate will increase to 250 000 cars and 300 000 engines annually. The first model out of the factory is medium-sized Linea which later may be followed by Bravo and Grande Punto.

Fiat has sought a partner in China for a long period of time, where car sales are great in comparison to the figures on the domestic market and the U.S. In May, 47 percent more cars were sold in China compared to the same month last year.

                                                                                        Cecilia Helland