Fiat signs deal with Chery to form new joint-venture company
7 August 2007

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.

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