Chery Automobile to supply engines to Fiat

Fiat Group has announced that they are collaborating with Chinese auto maker Chery Automobile Co.

The deal would see Chery supplying them with more than 100,000 engines per year.

The Chinese automaker would be providing Fiat with 1.6 and 1.8 liter engines for Fiat cars made China and overseas.

Sergio Marchionne, CEO of Fiat Group added in a statement on this newly signed deal: “This is also a good basis for studying further cooperation with Chery in the automotive industry.”

Fiat has plans to sell 300,000 vehicles in China by 2010. However, compared to other European automakers they are struggling at the moment with sales touching just around 31,300 units last year.

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