Fiat has gone back to producing cars in China as demand in Europe slows down

Article by Christian A., on June 29, 2012

As the demand in Europe has been slowing down, Fiat has gone back to producing cars in China. Last Thursday, Fiat began production of the Viaggio compact sedan with joint venture partner Guangzhou Automobile Group at their new plant in Changsha in central China. Fiat has had two previous partnerships in China but both failed.

To be more competitive and to catch up to rivals, Fiat will need to produce in China so that it could avoid the 25% import duty. Meanwhile, in Fiat’s home market in Europe, it will reduce investments by 500 million euros ($621 million) as consumer confidence fell to its lowest level in May in 15 years.

Fiat CEO Sergio Marchionne said that the automaker is already “too late” in showing up in China and so there’s much of work to be done. Marchionne didn’t give details or a timeframe but he did confirm that Fiat will build several Jeep models in China.

He said that the Changsha plant can be increased to build about 400,000 units annually, from the existing 140,000. Fiat is aiming to increase the annual sales of locally built cars to 200,000 in 2014, according to Jack Cheng, general manager of GAC Fiat Automobile, who was interviewed last April.

In 2011, Fiat only delivered 991 units in China. This is very low compared to the 2.55 million vehicles that General Motors sold in this country, earning it the title as the biggest foreign automaker in China. Volkswagen sold 2.26 million of its vehicles.

Fiat's third Chinese partner -- Guangzhou Auto – is based in the southern Guangdong province that borders Hong Kong. Fiat ended its venture with Nanjing Automobile Group Corp. after it merged with SAIC Motor Corp. in 2007. Fiat then partnered with Chery Automobile but this only lasted two years.

Topics: fiat, china

If you liked the article, share on:

Comments

Recommended

Like it or not, Chevrolet may soon be offering a cheaper Camaro in hopes of competing with Dodge Challenger and Ford Mustang GT. Apart from the less expensive trim, the...
by - August 17, 2017
Recently, Porsche revealed a new Macan Turbo wearing a Performance Package and a unique Porsche Motorsport themed paint. At first look, it will remind you of the 919 Hybrid and...
by - August 17, 2017
The BMW M1 will be one of the most exclusive cars that will be showcased at the upcoming 2017 Pebble Beach Concours d'Elegance, alongside many other extravagant models. Firstly, there...
by - August 17, 2017
Aston Martin Vanquish Zagato makes its debut with a total of four variations including the Speedster and the Shooting Brake trims. As part of the limited edition model, the company...
by - August 17, 2017
Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 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