Fiat and Chery Reached an Agreement on Engine Purchase

Fiat and Chery Reached an Agreement on Engine Purchase

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Beijing, China-August 6, 2007-Fiat Group Automobiles and Chery Automobile Co., Ltd. announced today that they had reached a final agreement on engine purchase. According to the agreement, Chery Auto will supply 1.6L and 1.8L gasoline engines for the Fiat cars manufactured in and out of China. The two companies expected that the annual supply of engines would exceed 100,000 units.

Mr. Marchionne, CEO of Fiat Group and Fiat Auto, commented, “The signing of the agreement fully shows both parties’ confidence in cooperation and lays a solid foundation for the discussion between the parties about the automobile industry for further cooperation.”

Mr. Yin Tongyao, president and general manager of Chery, commented, “The cooperation assists in improving Chery’s competitiveness in the international market. We are so pleased to have entered into a deep cooperation with Fiat and look forward to advancing shoulder to shoulder with Fiat.”

Located at Wuhu, Anhui Province, Chery is one of China’s most successful automobile manufacturers. Currently, Chery has released 10 car models including Estar, Tiggo 3, A5, Cowin, V5, A1, Riich 2, Karry, QQ3 and QQ6 and engine series such as Chery CAC and AECTCO. Besides, Chery is currently a leading exporter of Chinese cars.

With a long history of over 100 years in automotive manufacturing, Fiat Auto has several most prestigious brands in the European and American market: Fiat, Lancia and Alfa Romeo. In 2006, Fiat Auto manufactured and sold a total of about two million cars with a sales income of EUR 23.7 billion. Fiat Auto is affiliated to Italy’s largest industrial group-Fiat Group, which has currently six joint ventures and nine exclusively foreign-owned enterprises mainly engaged in the manufacture and sales of passenger vehicles, commercial vehicles, agricultural machinery, engineering machinery and automotive parts in China.