Fiat Auto and Chery Automobiles Engine Deal

[thegriffon]

Fiat Auto and Chery Automobiles today announced the signing of a Memorandum of Understanding (MoU). According to this agreement, Chery Automobile will supply 1.6 and 1.8 L gasoline engines for application in Fiat cars to be produced in China and outside China. The two companies expect an annual supply exceeding 100,000 engines and are engaged to sign the definitive supply agreement before year end.

In a statement, Mr. Sergio Marchionne, CEO of Fiat and Fiat Auto, said, “The agreement with Chery will give us the opportunity to further increase the competitiveness of our product range on the international markets. … more

[Intrepidation]

So crap engines in French cars? A winning combination!

[Flybrian]

Ahem

FIAT = Fix It Again Tony

[Polish_Kris]

So crap engines in French cars? A winning combination!

210890[/snapback]

Ummm... FIAT is Italian

[HarleyEarl]

And GM's Torrent and Equinox have Chinese engines.

[Intrepidation]

Ummm... FIAT is Italian

212205[/snapback]

Woops, my bad. But still my point remains valid.

[FAPTurbo]

If they build the engines to FIAT specifications, there should be "few" problems :AH-HA_wink:

Same goes for the 'nox's engine. It's built to GM specifications, so it is reliable.

Now if they (FIAT) just ordered Chery's regular, run of the mill engines, there'd likely be reliability problems.

[thegriffon]

They're getting Chery's new engines, because Chery has spent a lot of government money on brand-new state-of the art engines engineered in Europe, and Fiat doesn't have the time or money to do so. Having left gasoline engine development to GM for several years they now find themselves short. GM's new engines in this size bracket have been introduced since the partnership dissolved, so Fiat isn't getting them.

[LosAngeles]

So the Fiat Group has fallen this far off, eh?

And we say the British car industry is in the toilet.

Fiat IS Italy...more so than the exotics will ever be.

[thegriffon]

These engines are primarily for developing markets such as India and China. Europe gets an unrelated new Fiat 1.8 DI Turbo, and the 1.4 Turbos.

Edited April 7, 2008 by thegriffon

[CARBIZ]

Hmm, it seems that Fiat has hit upon an easy way to make money. Didn't a Memorandum of Understanding cost GM $2 billion to get out of?

[Guest aatbloke]

So the Fiat Group has fallen this far off, eh?

And we say the British car industry is in the toilet.

Fiat IS Italy...more so than the exotics will ever be.

The British car industry may be entirely under foreign parentage, but it isn't in the toilet. It employs a million people in this country and contributes significantly to the national economy.

[Guest aatbloke]

Ahem

FIAT = Fix It Again Tony

In 1978 - yes. In 2008 - no.

[Guest aatbloke]

Hmm, it seems that Fiat has hit upon an easy way to make money. Didn't a Memorandum of Understanding cost GM $2 billion to get out of?

GM knew the score in that deal. Fiat's return to profitability in the past couple of years is down to concentrating on what it's best at - small cars. This resurgence began with the latest Punto, and compounded upon by the new Panda, Bravo and most recently the brilliant new 500.

[Duncan]

And GM's Torrent and Equinox have Chinese engines.

Based on an American design, of course, but your point is well-taken.