{"id":8971,"date":"2009-07-07T09:39:37","date_gmt":"2009-07-07T14:39:37","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=8971"},"modified":"2009-07-07T21:53:39","modified_gmt":"2009-07-08T02:53:39","slug":"fiat-to-make-cars-and-engines-in-china-with-gac","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2009\/07\/fiat-to-make-cars-and-engines-in-china-with-gac\/","title":{"rendered":"Fiat to Make Cars and Engines in China with GAC"},"content":{"rendered":"
\"sergio-marchionne-and-the-fiatlinea\"<\/a>
Under Chinese industrial policy offshore companies must have a local partner for access to what has become the world's largest vehicle market. <\/figcaption><\/figure>\n

Fiat Group and Guangzhou Automobile Group Company Ltd. (GAC Group) signed a “Framework Agreement” yesterday to establish a 50\/50 joint-venture for the production of cars and engines for the Chinese market.<\/p>\n

The first model to be launched will be the C-size Fiat Linea sedan with 1.4-liter 120 horsepower and 150 horsepower engines.<\/p>\n

Under Chinese industrial policy offshore companies must have a local partner for access to what has become the world’s largest vehicle market. GAC delivered more than 530,000 cars to customers in 2008 and had RMB 109.9 billion in revenues ($16 billion).<\/p>\n

\"Fiat<\/a>
First car built will be the Fiat Linea sedan with a 1.4-liter, 120 or 150 horsepower, engine. Linea has two distinct Italian meanings: style and direction.<\/figcaption><\/figure>\n

The plant will be located in Changsha, the capital of Hunan province, a major road and rail hub in the heart of south central China, approximately 600 kilometers north of Guangzhou.<\/p>\n

The two cities are due to be connected within a couple of years by high-speed rail link, as China continues to spend almost two-thirds of its budget on infrastructure improvements.<\/p>\n

In the U.S., about two-thirds of the Federal budget goes for payment on debt, $412 billion in interest alone during 2008, of which the Chinese hold significant amounts in the form of 24% of the Treasury bills outstanding. \u00a0\u00a0<\/p>\n

\"Subscribe<\/a>
No JV required!<\/figcaption><\/figure>\n

The agreement was signed in Rome by Zhang Fangyou, Chairman of GAC Group, and Sergio Marchionne, CEO of Fiat Group, in the presence of the President of the People’s Republic of China, Hu Jintao, and the Prime Minister of Italy, Silvio Berlusconi.<\/p>\n

<\/p>\n

\n
\n
\"GAC\"<\/a><\/dt>\n
<\/dd>\n<\/dl>\n<\/div>\n

The construction of a new plant of more than 700,000 square meters is expected to begin almost immediately. Total investment by the joint venture is estimated at more than \u20ac400 million ($561 million).<\/p>\n

Initial production capacity of 140,000 cars and 220,000 engines per year is planned when the complex opens in the second half of 2011. Capacity could subsequently be increased to a maximum of 250,000 cars and 300,000 engines per year.<\/p>\n

This industrial project is also eligible to receive support from the development plan recently established by the Chinese government to promote new investment in six provinces in central China.<\/p>\n

GAC Group<\/strong> is a large state-owned holding enterprise, and one of the principal automotive groups in China. GAC’s business activities encompass both the international and domestic markets and includes the design and manufacture of vehicles and components, sale and distribution of vehicles, car finance, insurance and auto-related services.<\/p>\n

GAC has investments in multiple subsidiaries, including Guangzhou Automobile Group Motor Co., Ltd; Guangqi Honda Automobile Co., Ltd.; Gac Toyota Motor Co., Ltd.; Honda Motor (China) Co., Ltd.; GAC Hino Motors Co.; Ltd., Guangzhou Automobile Group bus Co., Ltd; GAC Toyota Engine Co., Ltd.; Guangzhou Automobile Group Component Co., Ltd.; Guangzhou Automobile Group Business Co.; and the GAC Automotive Engineering Institute.<\/p>\n

GAC initiated a technological collaboration in 2008 with Fiat Group Automobiles and Fiat Powertrain Technologies to provide technology and support for development of the first vehicle to be produced and sold under the GAC brand.<\/p>\n","protected":false},"excerpt":{"rendered":"

Under Chinese industrial policy offshore companies must have a local partner for access to what has become the world’s largest vehicle market. GAC delivered more than 530,000 cars to customers in 2008 and had RMB 109.9 billion in revenues ($16 billion).<\/p>\n","protected":false},"author":17,"featured_media":8977,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[8],"tags":[],"make":[],"post-state":[],"category_old":[151],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/8971"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=8971"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/8971\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/8977"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=8971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=8971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=8971"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=8971"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=8971"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=8971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}