"Guangfei Philip Marriage" analysis: strong combination of mutual benefit
Two Fiats and GAC Group, which have been in a strong position this year, signed an important agreement last week in Rome, Italy. Both parties plan to use a total investment of more than 400 million euros (equivalent to RMB 3.8 billion yuan). China established a joint venture with a 50%:50% shareholding ratio to produce cars and engines. This cooperation is of far-reaching significance to both parties. From the point of view of GAC Group, Fiat's participation not only implements the goal of becoming bigger and stronger in the “Regulations for the Adjustment and Revitalization of the Automobile Industryâ€, but also fulfills the various commitments given to Changfeng. For Fiat, after successfully joining Chrysler and knocking on the door to the US market, it finally achieved a return to the Chinese market, which has already leapt to the global automotive sales championship, and fulfilled Fiat's overseas expansion mission.
Fiat returns to the Chinese market and enters into a joint venture with Guangzhou Automobile's over RMB3.8 billion
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Two Fiats and GAC Group, which have been very active this year, signed an important agreement last week in Rome, Italy. Both parties plan to use a total investment of more than 400 million euros (equivalent to RMB 3.8 billion yuan) in China. A joint venture with a 50%:50% shareholding ratio was established to produce cars and engines. On this day, Fiat and Nanqi broke up only 19 months. However, in stark contrast to the sudden withdrawal of the Chinese market 19 months ago, the Fiat-Guangzhou cooperation was fabulous due to its backing on the “G8 Summit†and the support of the leaders of the two countries.
The new plant will be put into production in the next year
According to the basic agreement signed by the two parties, the joint venture company will be registered and constructed at Guangzhou Auto's acquisition of Changfeng's base, Changsha, Hunan. The new factory will have a production area of ​​over 700,000 square meters. It is expected to start production in the second half of 2011. The production capacity of the first phase will be an annual production capacity of 140,000 cars and 220,000 engines, and the production capacity will gradually increase to an annual output of 250,000 cars and 300,000 engines. The first model to be introduced is the mid-range sedan, the first Fire 1.4-liter (120-hp and 150-hp T-Jet) turbocharged gasoline engine from FPT Fiat Power Tech.
This cooperation is of far-reaching significance to both parties. From the point of view of GAC Group, Fiat's participation not only implements the goal of becoming bigger and stronger in the “Regulations for the Adjustment and Revitalization of the Automobile Industryâ€, but also fulfills the various commitments given to Changfeng. In addition, it will also change the history of GAC Group's cooperation with Japanese brands, and Fiat’s technical cooperation will also be able to help GAC's own brand to develop rapidly, thus freeing itself from the embarrassing situation of manufacturing factories. For Fiat, after the successful alliance with Chrysler and the opening of the American market, it finally achieved its goal of resuming the Chinese market, which has leapt to the global automotive sales championship, and fulfilling Fiat's overseas expansion.
Two-stage introduction of complete vehicle
In accordance with the currently agreed plan, the joint venture company will set up a vehicle division, an engine division, and an R&D center. Among them, the most concerned vehicle introduction will be promoted in two phases. The first phase will include two economical family cars including the lead ya, and the second phase will include four models including a B-class car. It is noteworthy that, while domestically produced, Fiat's imported car business will continue to advance, but after the price of domestic cars, such as the lead-in-Ya, will reach more than 70%, the selling price will naturally drop substantially.
In terms of core technology, in addition to the 1.4T low-emission turbocharging technology, Fiat already owns various new energy technology engines such as advanced diesel engines, clean compressed natural gas engines, and hybrid electric power. It is also expected to gradually approach us with joint ventures. .
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