Center

Chery in talks to tie with Fiat

By Gong Zhengzheng (China Daily)
Updated: 2007-02-01 09:04

"However, we will not give up the Chery brand, whoever we collaborate with," Zhan said.

Last month, Chery agreed with US carmaker Chrysler to make cars in China for the North American and European markets. Chery has been one of the flagship Chinese car brands and the nation's top car exporter in recent years with low-cost products and improving design and quality.

The company announced last month it aims to sell at least 393,000 cars this year, up from 305,000 units in 2006. Meanwhile, it expects to boost exports to 70,000 units from 50,000. Chery also aims to sell a total of 1 million cars at home and abroad a year by 2010.

Song Bingshen, an auto industry analyst with CITIC China Securities Co, said Fiat is seeking a tie-up with Chery mainly because of its weak performance in China, the world's No 2 vehicle market.

Fiat now makes the Palio and Siena subcompact cars and Perla compact sedan at a venture with Nanjing Automobile Corp in East China'sJiangsuProvince.

However, the venture, set up in 1999, has seen sluggish sales and losses in recent years due to internal wrangles and a lack of competitive products.