To Revive Operations In China, Fiat Names New Executive And Introduces New Cars

SHANGHAI - December 3, 2007:

To Revive Operations In China, Fiat Names New Executive And Introduces New Cars

In order to turn around the previous sluggish performance in China, Fiat has named a new chief representative for business operations in China while planning to introduce three new car models early next year, Chinese newspaper Beijing News reported.

Paolo Arpellino, 45, will replace Andrew Humberstone to take charge of Fiat's business development and daily operations in China, effective on November 1 this year, Fiat Group China announced last Friday. Prior to this appointment, Fiat's joint venture with Nanjing Automobile Group has witnessed frequent personnel changes.

The three new car models to be introduced to Chinese market early next year include Grande Punto, Bravo and Linea. These car models are still under industrial certification and will be sold through Nanjing Fiat's sales networks, the Beijing News said.

"We sell new imported cars here to bolster the brand's presence in Chinese market; volume is not the main goal,¡± said Jing Boqing, business director of Nanjing Fiat. Jing added that currently the major task for the Nanjing Fiat is to exploit the potential of the existing products.

The joint venture Nanjing Fiat, is on the verge of a split as both Fiat and Nanjing Auto are seeking new alliances--Fiat is consolidating its partnership with Chery Automobile and SAIC while Nanjing Auto has just reached a deal with SAIC.

Fiat's CEO Sergio Marchionne told the Reuters in July that he insisted on the target to sell 300,000 vehicles in China by 2010, but Nanjing Fiat sold only 11,265 vehicles in the first half of this year, down 30 percent from one year earlier. The money-losing JV had originally forecasted to sell 50,000 vehicles for 2007. Marchionne complained that its Chinese partner was focusing too much on developing its own brand¡ªMG.

Najing Fiat was established in April 1999 by Fiat and Nanjing Auto. The total investment was 3 billion Yuan, with each partner holding a 50 percent stake.

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