 The Alfa Romeo 159 will be the first model assembled in China |
Italy's Fiat has signed a joint venture with Chery Automobiles of China to produce cars for the Chinese market. The pair are set to start production at a plant in Wuhu, Anhui province in 2009 and expect to turn out around 175,000 Fiat and Alfa Romeo cars a year.
No financial details of the agreement were revealed.
The news comes a day after Fiat said it would buy 100,000 engines a year from Chery as part of a push to boost ties with the lucrative Chinese market.
While Fiat said the deal would mark an historical step into "the world's fastest growing automotive market", Chery said the move would make its own brand more competitive worldwide.
The Italian firm has been struggling to turnaround its fortunes in the Chinese market where it currently operates six joint ventures.
Its operation with Nanjing Automobile Corp remains a loss maker and Fiat's sales are lagging behind its target of selling 300,000 vehicles in China by 2010. By June 2006 sales stood at just 31,300.
One-Minute World News 
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