Fiat and Chinese car maker Chery have signed an agreement that will lead to Alfas and Fiats being made in China.
The deal, signed on Monday (7 August), is for a joint venture in which Chery and Fiat will be equal partners. The joint group will build around 175,000 cars a year, starting in 2009.
The cars will be a combination of Fiats, Alfas and Cherys. The first car is likely to be the Alfa 159, built from kits imported to China. It will be followed by the five-door 147 hatch.
Fiat already builds cars in China, in collaboration with Nanjing Automobile – best known as the new owner of MG. It apparently intends to end this arrangement.
Chery already makes engines for Fiat, and earlier this year signed a deal to build a new Chrysler supermini, for export to the Americas.