Chery and Fiat Reached a Memorandum of Understanding

Chery and Fiat Reached a Memorandum of Understanding

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Beijing, China - August 7th 2007 - Fiat Group Automobiles and Chery Automobile Co., Ltd signed a Memorandum of Understanding, according to which, both sides will each invest 50% in a joint venture that produces passenger vehicles.

The joint venture to be established in Wuhu, Anhui, China will produce and distribute Alfa Romeo brand and Fiat brand of the Fiat Group Automobiles, and the vehicles under Chery brand as well.

According to the memorandum, the joint venture will be put into operation in 2009 with an estimated annual production of 175,000 units of car. The two parties agreed on an immediate detailed negotiation on the joint venture and the start of the relevant procedures for governmental approval.

The CEO of Fiat Group and Fiat Group Automobiles, Marchionne said, ‘It is so significant to introduce the most attractive European cars of Alfa Romeo to the Chinese market which enjoys the fastest pace of development in recent years. And it is a momentous milestone for Alfa Romeo brand to enter China at this time. In the meantime, our cooperation with Chery will definitely be beneficial to the further development of Fiat in this country.’

The President and General Manager of Chery Automobile Co., Ltd, Yin Tongyao expressed, The signing of the Memorandum of Understanding brings Chery and Fiat a great opportunity to introduce the legendary Alfa Romeo to Chinese customers. At the same time, Alfa Romeo brand and Fiat brand cars are advantageously supplementary to Chery’s present models lineup. They will help to enhance Chery’s competitiveness in the global market.’

Located in Wuhu, Anhui Province, China, Chery is one of the most successful automakers in China. Till now, 10 models of Chery have entered the market, including Eastar, Tiggo3, A5, Cowin, V5, QQ3, QQ6, Karry, Riich II, A1 etc, and the corresponding engine series of Chery CAC and ACTECO. Meanwhile, Chery is the absolute leader in Chinese car export.

Fiat Group Automobiles is bestowed with a history of more than 100 years, and owns the renowned vehicle brands of Fiat, Lancia and Alfa Romeo in European and American market. In 2006, the total production and sales of Fiat Group Automobiles reached nearly 2,000,000 units, with the total income of close to 24 billion Euros. Fiat Group Automobiles belongs to Fiat Group, which is the biggest industrial group in Italy. At present, it is in possession of 6 joint ventures and 9 solely-funded enterprises in China, its main business includes manufacturing and distributing passenger vehicles, commercial vehicles, farm machinery, engineering machinery and auto components.