SAIC, Fiat to Jointly Make Commercial Vehicles
Shanghai Automotive Industry Corporation (Group) (SAIC) is in negotiations with Fiat Group about cooperation in commercial vehicles production, and their framework agreement is expected to be inked in September 2009, said insiders.
Presently, the automobile front-runner located in Turin, northwest Italia, wants to control a 51% stake in the new joint venture, but SAIC opposed. In order to avoid the internal competition, SAIC will integrate its commercial vehicle platform and related products, once both parties reach an agreement.
Fiat's commercial vehicle brands are composed of heavy-, medium, and light-duty trucks as well as passenger cars, so the would-be cooperation is predicted to help the Shanghai-based automaker further sharpen its competitive edge in the commercial car sector, said people familiar with the matter.
As early as September 2008, SAIC intended to make inroads into the high-profit overseas light-duty commercial vehicle market, resorting to the perfect global business network of Nanjing Iveco Motor Co., Ltd.