Fiat considers a second auto plant in China

Article by Christian A., on September 24, 2012

Fiat is thinking about a plan to build a second auto plant in China as part of its expansion in this country as it reduces its investment in the struggling European market. When interviewed in Shanghai, Jack Cheng, general manager of Fiat's joint venture in China with Guangzhou Automobile Group Co., said that it may open another manufacturing site in the south.

Fiat CEO Sergio Marchionne is hoping to increasing sales in China in order to offset the losses in Europe. Fiat is cutting its expenses in its domestic market this year by 500 million euros to save cash, with demand in Europe expected to decrease for a fifth consecutive year. In the first half, Fiat's mass-market brands reported losses of 354 million euros.

Marchionne, who has been leading an industrywide effort to shut down excess assembly lines in Europe, has announced that he will close a second Italian factory unless he discovers a way to export vehicles to the U.S. Fiat will be introducing a plan to stop losses in Europe at the end of October. Fiat has has two partnerships in China but they failed. Eventually, Fiat began sales of its first China-made vehicle, the Viaggio compact, on Sept. 16.

Cheng said that Fiat intends to release one new model every year in the country and will present an SUV in 2014. The Viaggio has a starting price of 108,800 yuan (13,234 euros), according to Jiang Ping, executive deputy general manager of the joint venture, GAC Fiat Automobile Co.

As many as 140,000 cars can be produced by the venture's factory each year. Furthermore, the company offers three imported models in China: the Bravo hatchback, the Freemont SUV and the retro-styled 500 minicar.

Topics: fiat, china, plant

If you liked the article, share on:

Comments

Recommended

Just days after unveiling the refreshed 2018 Toyota Yaris hatchback to the North American public at the 2017 New York Auto Show, the Japanese company is now disclosing how much...
by - April 30, 2017
The next generation Volvo XC60 will be soon on its way to dealerships and customers as the Swedish carmaker has already commenced production of the mid-sized sports utility vehicle at...
by - April 30, 2017
In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries