Italy's Prime Minister Silvio Berlusconi holds a document on economic and cultural exchanges while appearing with President Hu Jintao during a news conference in Rome yesterday. Hu is on a state visit to Italy and will attend a summit of G8 and G5 leaders in L'Aquila on Wednesday. [China Daily/Sun Shangwu]
ROME: Italy's Fiat and China's Guangzhou Automobile Group will launch a multi-billion yuan joint venture to produce Fiat cars in Changsha, Hunan province, it was announced Monday.
The work will begin in the second half of 2011.
The agreement was one of nine signed by the Chinese and Italian sides during President Hu Jintao's state visit to Italy.
Hu and Italian Prime Minister Silvio Berlusconi attended the signing ceremony.
Special Coverage
G8+5 Meetings
Related readings:
Partners to produce China Fiat
Italy looks to attract Chinese tourists
Restaurateur's high hopes for summit menu
Fiat signs joint venture with China's Guangzhou Auto
President Hu arrives in Italy
Agreements to foster partnership between China and Italy
Hu's Italian job to bolster bonds
The other agreements focus on encouraging bilateral cooperation in investment, the high-tech sector, tourism, culture and insurance.
Before the signing, Hu held separate meetings with Italian President Giorgio Napolitano and Berlusconi. They met with the press after the talks.
Hu expressed satisfaction with talks over development of bilateral ties, especially the progress achieved since the establishment of a strategic partnership in 2004.
Hu told Napolitano and Berlusconi that the economies of China and Italy are strongly complementary and the two governments should provide support to small- and medium-sized companies in the two countries.
Bilateral partnerships in telecommunication, automobiles, goods and transportation should be enhanced, while more attention should be paid to new energy, renewable energy, tourism and medicine manufacturing, Hu said.
Around 300 Chinese companies are part of an investment and trade promotion delegation accompanying Hu.
They represent small- and medium-sized enterprises, private firms and high-tech companies, according to Sun Yongfu, a senior trade official with the Ministry of Commerce.
Italy is China's fifth-largest trade and investment partner in the European Union. Bilateral trade reached $38.3 billion last year. which is close to the target set by the two leaders.
Partners on road to producing China Fiat
Italy's largest carmaker, Fiat Automobiles SpA, and Chinese auto producer Guangzhou Automobile Group Co Ltd (GAC) are forming a 50-50 joint venture to produce cars and engines starting in the second half of 2011.
The agreement was signed in Rome Monday during President Hu Jintao's visit to Italy and came as China overtook the US as the world's largest car market.
The two companies will invest more than 400 million euros ($556 million) on the venture, according to a statement from Fiat.
Upon completion of the first phase of the venture, the partners will be able to churn out 140,000 cars and 220,000 engines each year. Plant capacity can be ramped up to produce a maximum of 250,000 cars and 300,000 engines per year.
Related readings:
Fiat signs joint venture with China's Guangzhou Auto
Agreements to foster partnership between China and Italy
titleHu's Italian job to bolster bonds
President Hu arrives in Italy
Hu leaves for leaders' dialogue between G8, emerging economies
Hu, Obama to meet at G8 meeting in Italy
The China-made cars will be equipped with the latest engine and transmission technology in response to the Chinese government's requirement for fuel-efficient, low-emission vehicles, the statement said.
The first model will be the C-segment Linea sedan.
Fiat and GAC started technological cooperation last year.
The venture will be located in Changsha, where Hunan Changfeng Motors Co is headquartered. GAC is the largest single shareholder in Hunan Changfeng Motors Co.
GAC has also forged partnerships with Japanese giants Toyota and Honda.
Fiat, which recently acquired a 20 percent stake in ailing US automaker Chrysler, has thirsted for Chinese partners for some time as it has sought to grab market share in China through the local production of Fiat cars.
The Italian automaker struck a deal last year with China's Chery Automobile Co to form a 50-50 venture in Wuhu, Anhui province. That venture is expected to produce 175,000 vehicles a year.
Fiat The deals inked JV with among Italy Hu sedan