With an extensive array of small, frugal cars in its lineup, over the years Fiat has established a major presence throughout countries in the developing world. Yet, so far, the Italian automaker has made less headway in China than rivals GM and Volkswagen, who are seeing their investments reap healthy profits and record growth. So Fiat is planning an expansion in the Middle Kingdom and will build a new, $263 million engine plant in Chongqing, in the nation's southwest.

Previously Fiat had pulled out of a joint venture with Nanjing Automotive because it was unprofitable, but its Iveco division still builds heavy-duty trucks in Chongqing with local automaker SAIC. However, instead of focusing on Chinese-market vehicles, the Turin company reportedly will use the new factory to build light diesel engines, with 70% percent of them destined for export. According to the Chongqing Development and Reform Commission, the plant will have a capacity of 100,000 units per year.

Though there's currently no word on when the new factory will start production, Fiat is also trying to improve its Chinese sales by offering some new models. Starting later this week, the automaker will begin importing examples of the Bravo, Linea, and Grande Punto to sell at approximately 30 dealerships nationwide. This marks the first time Fiat has sold imported vehicles in the country, and executives aren't saying what their sales target might be.

Fiat has had difficulties in the People's Republic recently and is locked in a legal dispute over an alleged copy of its Panda five-door by automaker Great Wall soon after offending many officials with a Lancia commercial featuring Richard Gere driving in Tibet. Given that China is already the world's second-largest car market and continuing to grow, no doubt the Italian automaker is eager to join GM and VW atop the nation's sales charts for foreign manufacturers.

Source : english.chinabuses.com

Editor : admin

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