Chery to Supply 100,000 Gas Engines to Fiat Annually

SHANGHAI - August 7, 2007: Fiat and Chery completed a gas engine supply deal with yesterday. Under the agreement, Chery will provide 100,000 gas engines annually to Fiat. These 1.6 L and 1.8 L gas engines will be designed for Fiat automobiles manufactured in both China and elsewhere in the world.

"The forged deal (with Chery) demonstrates both parties' confidence on the partnership. This is also a good basis for studying further cooperation with Chery in the automotive industry," said Fiat chief executive Sergio Marchionne.

Yin Tongyao, Chery's president, said the cooperation helps increase Chery's competitiveness in international auto market and that he was delighted to deepen our partnership and look forward to advancing together with Fiat.

"The final deal came nine month after the signing of Memoir of Understanding," said a Chery sales official. "Because Fiat needs the time to test the compatibilities between Chery engines and Fiat cars."

For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html