Fiat S.p.A. and the Chinese automaker Guangzhou Automobile Group Co. have applied to the Chinese government to establish a joint venture manufacturing facility in the south China city of Guangzhou, according to domestic Chinese media. 

 

Guangzhou Auto has submitted the joint venture plan to the central Chinese government and is now waiting for approval, Guangzhou Auto CEO Zeng Qinghong told Chinese media. 

 

Zeng made the remarks at a press conference held on May 21 after his company signed an agreement to acquire Changfeng Motor Co., a domestic SUV maker.

 

Meanwhile, according to Caijing, a Beijing-based finance magazine, Guangzhou Auto in March filed a document to China's Ministry of Environmental Protection requesting an environmental impact assessment of the joint venture project it plans to build with Fiat. 

 

According to the document, Guangzhou Auto and Fiat plan to build a facility in Guanghzou's Fanyu district.  

 

With a total investment of 4.3 billion yuan ($630.5 million), the joint venture will start operation in 2011 and have an annual capacity of 140,000 cars and 220,000 engines, said Caijing, citing the document. 

 

When contacted by Automotive News China, Fiat declined to comment on the joint venture project.  

 

After terminating its joint venture with Nanjing Automobile Group Corp. in December 2007, Fiat now has no production facilities in China. 

 

In August 2007, Fiat signed a preliminary joint venture agreement with Chery Automobile Co. to produce cars at Chery's existing premises in Anhui province. But for reasons that neither of them would disclose, the agreement has not yet been implemented.