Chery and Fiat put alliance talks on hold

The global economic recession has officially slowed Fiat's Big Love-style partnerships, as the Italian automaker's deal with Chery to produce models for the Chinese market has been put on hold. In August 2007, the two companies agreed on a 50/50 joint venture to produce 175,000 vehicles per year beginning in 2009. Chery spokesman Jin Yibo said that vehicle production "won't happen this year" and no date has been given for Fiat and Chery to begin building vehicles for China.
While global auto sales have taken a huge hit, the Chinese market has proven more resilient. The land of the Great Wall actually sold more cars and trucks in January and February than the United States. Given the upbeat car market in China, delaying the joint venture may sound a little strange. Fiat could be delaying the partnership to concentrate on its potential partnership with Chrysler, which would bring the Italian Automaker back into the (usually) lucrative US market.
[Source: Wall St. Journal]












Reader Comments (Page 1 of 1)
Frank 9:01AM (3/23/2009)
Look's like Chery just can't get a deal finalized with anybody, whether it's making cars for export for a foeign maker (Chrysler) or making cars at home with a foreign maker (FIAT).
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superman211 12:22PM (3/23/2009)
LMAO! I thought that auto blog misspelled chevy! LMAO!
Sektor 12:24PM (3/23/2009)
Good riddance; it means less crappy FIAT's on the road.
"Fehler in allen Teilen."
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the vegas style guy 12:30PM (3/23/2009)
I can only imagine what onerous conditions the Chinese government must be placing on these companies that they all back out of deals with Chery. They must have to hand over all of their technology or have no legal rights when the Chinese no longer find them useful. There's gotta be something.
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Sektor 12:35PM (3/23/2009)
Then why are all major automakers already in China?
the vegas style guy 1:47PM (3/23/2009)
Ahh, Sektor (Is that some Acronym for a secret world destabilizing organization set up by the Red Chinese to cause KAOS?) my Chinese apologist nemesis, welcome!
The car companies and Boeing, etc., are in the murderous Peoples Republic of China because they could care less about humanity or America or their own home countries. They Americans, in particular, were willing to sell their souls, and the technology which is subsidized largely by the US military, to even the most heinous of bidders. Obviously due to their increased sense of self importamce lately, the Communists are asking for more than the latest wannabe entrants to the Satanic marketplace that is China are willing to pay.
(I just wish I was there to watch Sektor's eyes bulge and those veins get perilously close to popping. I really threw the whole kitchen into that one. Wait! Here's one...)
Maybe FIAT decided that employing slave laborers who had the temerity to protest against the immoral occupation of Tibet while reading their non state approved Bibles were a greater force than the need to provide car for the party faithful to run over peasants with?
(Ok, that should do it)
E90M3 4:14PM (3/23/2009)
Vegas,
What part of AUTOblog do you not understand?
You can save the rest for IHumpNancyPelosi.com
BTW if she has her ways you can kiss your cars goodbye
the vegas style guy 6:15PM (3/23/2009)
"E90M3 4:14PM (3/23/2009)
Vegas,
What part of AUTOblog do you not understand?
You can save the rest for IHumpNancyPelosi.com
BTW if she has her ways you can kiss your cars goodbye"
What part of sarcasm do YOU not get?
"IHumpNancyPelosi.com"??? That's not even clever.
tekd 4:51PM (3/24/2009)
Oh get over it, every country that isn't a super-poor 3rd world pawn in the games played by the world powers has plenty of blood on their hands. Whether it's the British empire, the United States, the U.S.S.R./Russia, Japan, or China.
That's like expecting companies not to sell to US customers because we start wars, support dictators, took over Hawaii and Puerto Rico, exploit Haiti (also, support and replace dictators as needed), etc.
China at the very least has a government that actually tries to improve itself, to rid itself of the widespread corruption and try to be more open. The fact that there's constant infighting between the central and provincial governments (especially since corrupt provicincial rulers don't really care to be cleaned out) all gets blamed on the PRC, but the truth is that the actual PRC government has done a much better job than most.
Guess what? Abuses and all, the people of China still prefer their government, and prefer to live in China to places like India. Similar amounts of people, except one place has a government that's invested heavily in infrastructure, industry, and technology while making sure that it has enough resources to fuel growth. The other one's a "peaceful" (not really) democratic country with dirt roads, unbelievably low levels of education, a rampant HIV epidemic, and plenty of social problems of it's own where people get treated worse than Tibetans do in China. The underclasses in India get treated even worse than Slumdog Millionaire would have you believe.
The PRC's not perfect but if you only want US companies to go to perfect countries then we'd be nowhere. Should we demand that the United Kingdom give back all those treasures they stole from Egypt that sit in their museums? An entire friggin' pyramid's walls are sitting in London right now, along with tons of loot from all over the world.
And quite frankly every time some American decides to criticize China on Tibet they just point to Iraq and it becomes real obvious who's the pot calling the kettle black. Truth is that China's hands are already relatively clean for a UN security council member, and most of it's worst abuses are in the past. Of all it's crimes the worst were self-inflicted wounds like the cultural revolution that have nothing to do with the current leaders in Beijing.
The hypocrisy is pretty ridiculous, you can't seriously sit in a country made on land taken from natives (and no, those reservations are not just as good), that's instigated and started plenty of wars, that not so nicely controls and exploits places all over the carribean and latin america, then point at some other country and whine that we shouldn't do business with the bad guys.
The funniest part is that when we're talking about Tibet, do you realize that the Dalai Lama is a MONARCH who wants to claim the right to rule Tibet based on a DIVINE RIGHT. How is that freedom or democracy at all? The guy hasn't ever proven that he's capable of ruling even a town in New Jersey, and people seriously want to hand over an entire country to him, just because he happened to be born into the ruling monk class in Tibet and crowned their holy ruler. Utterly ridiculous.
tekd 6:42PM (3/24/2009)
Maybe we should stop selling stuff to India too while we're at it. It might have a democratic government but then instead of human rights violations you get this:
http://www.nytimes.com/2009/03/13/world/asia/13malnutrition.html
Which is again why most people in China happen to approve of their authoritarian leaders-the ones that are willing to force iodine to be added to salt so people don't have goiters, to force nutrition improvements, to force infrastructure to be constructed even if people protest-whether that's bulldozing someone's house in Beijing or building a train to Tibet to bring more commerce (which the Tibetans dislike since they see the commerce as carpetbagging).
The reason why Chinese consumers now have the money to buy from US companies is because China has an authoritarian government that forced things to happen. Otherwise the Chinese would be stuck where India is, lacking good infrastructure and with hundreds of millions of people literally not having enough food to eat. People always criticize about the millions who starved to death in China in the past because of idiotic government plans, but what about the millions starving to death NOW in India because their government didn't even bother to try?
The PRC might be brutal, censoring, and all that stuff, but at the end of the day they've significantly improved the lives of over a billion people. Three decades ago China didn't have enough food to feed it's people, and now many of them have the money to buy Chevy's. Making it sound like they go around beating people for fun is utterly ridiculous. The reason why the Tibetans have been particularly vocal as of late is because the PRC is heavily developing the infrastructure in Tibet to improve it's economic growth (which has lagged badly).
You complain that they respond harshly to people protesting, but the entire reason why China isn't filled with starving people is because they've always responded harshly to protests against infrastructure improvements or they never would have built the country into an economic powerhouse. It doesn't respect the individual rights of the protesters, but it's improved the overall living conditions of the entire population of China. So say what you will, but the vast majority of Chinese people are going to keep supporting their iron-fisted authoritarian government because it's also the only kind that could have made things happen as fast as they did.
tekd 8:26PM (3/24/2009)
BTW, with regards to Tibet:
http://canterburyatheists.blogspot.com/2008/12/dalai-lama-hail-neo-medieval-tibetan.html
http://www.spiked-online.com/index.php?/site/article/5170/
http://www.youtube.com/watch?v=4sjsY3UgFto
There are rabid religious zealots who support this guy and thus protest/riot/etc but that doesn't make him the rightful leader of Tibet. If he had his way Tibet would be a caste-based society with him as an absolute ruler, free to
But of course we should "free" Tibet and give it to this dictator to rule, because he has fanatic religious supporters willing to protest and riot?
Tibet is about a billion times better off under the PRC than it would have been under the Dalai Lama. Economically, socially, academically, and even in terms of freedom. So we're not supposed to sell the Chinese our cars now because you would rather have a divinely appointed lifetime dictator run Tibet? Absurd.