Fiat SpA (FI.BIT, FIP.BIT) may open a second Chinese factory as it looks to expand in the world’s largest vehicle market and cut European spending in the midst of the euro crisis, Bloomberg reported. Fiat vowed to reduce spending in Europe by US$645 million and close a second Italian factory unless it finds a way to export to the US. The Italy-based company is facing a fifth straight year of falling demand in Europe and a EUR354 million loss from the region in the first two quarters this year. After two previous failed partnerships, Fiat will start sales of its first China-made vehicle the Viaggo Compact on September 16. Last year the manufacturer sold just 991 vehicles in China compared to General Motors’ (GM.NYSE) 2.55 million and Volkswagen’s (VOW3.FRA) 2.26 million. “In the future, we might have another manufacturing site, somewhere in the south,” said Jack Cheng, general manager of Fiat’s joint venture in China.
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