Sunday, August 19, 2007

China's Chery to supply Fiat with 100,000 engines annually

HEFEI, Aug. 6 (Xinhua) -- China's fast-growing Chery Automobile Co., Ltd. and Italy's Fiat Auto have signed an agreement for Chery to supply Fiat with 100,000 engines a year.
The agreement was reached eight months after the two sides signed a memorandum of understanding on the deal. Chery also signed a deal with Chrysler Group last month to export the first Chinese-made cars to the United States.
"The agreement means that Fiat, which has been testing Chery's engines during the past year, has recognized the technologies and quality of the engines developed by Chery," said Zhou Biren, deputy general manager of Chery.
The 1.6 and 1.8-liter engines will be used in cars manufactured by Fiat in China and abroad, according to a statement on Chery's website
The agreement showed confidence by Chery and Fiat in cooperation and paved the way for further cooperation, Fiat chief executive Sergio Marchionne was quoted as saying.
Yin Tongyao, chairman and general manager of Chery, said, "The cooperation will help improve Chery's competitiveness on the international market. We are glad to cooperate with Fiat and look forward to developing together."
Chery became China's fourth largest producer of passenger cars in 2006, with sales of 305,200 vehicles and a 7.2-percent market domestic market share.


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