Hangzhou Iveco to manufacture Fiat gearboxes

BEIJING - Fiat SpA, Europe's sixth-largest automaker by market share, will locally produce its gearboxes in China, as part of its plan to gain a foothold in the world's biggest automobile market.

The gearboxes will be produced in partnership with the Italian carmaker's Chinese partners - Guangzhou Automobile Group Co Ltd and Hangzhou Advance Gearbox Group Co Ltd, according to listed Hangzhou Advance's statement filed to the Shanghai Stock Exchange on Tuesday.

The deal involves a joint investment of 2.27 billion yuan ($350 million).