Manufacturing News

Fiat plans local production in 2011

Fiat Group Automobiles is planning to begin local production of a small sedan in China in 2011.

Fiat Group Automobiles is planning to begin local production of a small sedan in China in 2011, sources say.

A supplier source says he has received requests for parts quotations for a car to start production in 2011. Sources in Italy and China say the car will have a 1.4-liter gasoline engine.

The car is expected to be the Linea, a small sedan specially designed for emerging markets. The car has a 2,603-millimeter wheel base and an overall length of 4,560 millimeters.

Industry sources speculate that the car will be built under a technical co-operation agreement with Guangzhou Automobile Industry Corp. Under a previous agreement, Fiat sold Guangzhou Auto the Alfa 166 platform, which it is using to develop vehicles for its own brand.

Fiat declined to comment. Guangzhou Auto also declined to comment.

Fiat has lacked a production plant in China since December 2007 when its joint venture with Nanjing Automobile Group Corp. collapsed.

In 2007, Fiat signed an agreement with Chery Automobile Co. under which Chery would produce 100,000 engines for Fiat to use in China and elsewhere. The two companies have also talked about Chery producing cars for Fiat, but Fiat has not said if an agreement is still on the table.

Meanwhile, Fiat plans to start importing to China the Fiat 500 small car in the third quarter of 2009, a Fiat source says.

The Fiat 500 car comes with either a 1.2- or 1.4-liter gasoline engine. It is fitted with front, side, curtain and knee airbags.

In Italy, the Fiat 500 sells for around 11,300 euros (98,425 yuan). Fiat currently sells three imported cars in China, the Linea, Bravo and Grande Punto.

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