Autoblog

Hot on the heels of Nanjing Auto's merger with SAIC, Fiat has announced it has pulled out of the automotive joint venture it had embarked upon with Nanjing.

The Sino-Italian operation had been a money-losing enterprise for years. Fiat says that Nanjing failed to live up to its commitments to the joint venture after the Chinese auto group took over MG Rover, and that the divorce will enable the Italian automaker to re-strategize its business in China. Fiat is expected to partner instead with Chery Automobiles, which just announced another joint venture with Israel Corp. Fiat and Chery are in the process of setting up another joint venture to produce 175,000 cars annually starting in 2009, and leading to the introduction of Fiat Group division Alfa Romeo to the Chinese market.

The separation affects only the cooperation between Fiat and Nanjing on the production of passenger cars, and doesn't have any bearing on Fiat's truck-building division, Iveco, which cooperates with Nanjing to build vans and with Nanjing's new parent company SAIC on trucks, the two relationships will continue unhindered.

[Source: Automotive News - Sub. Req.]

Israel develops and produces a lot of things, from microchips to cosmetics. But, discounting the odd dune-buggy or army jeep, cars aren't one of them. So it came as a bi t of a surprise when Quantum, an American subsidiary of (the imaginatively named) holding company Israel Corp., announced it was embarking on a joint venture with an unnamed Asian automaker back in the spring.

Israel Corp. has now won approval from China's still heavily centralized government to set up shop in partnership with Chery Automobile. The Israeli partner will take a 45% stake in the venture, worth about $225 million, with Chery presumably taking the other 55%. The news of the deal hit the wire shortly after the now-refuted

reports of an ambitious plan to put 10,000 electric cars on Israeli roads by 2010.

Chery was the first of a plethora of Chinese automakers that now manufactures outside of China, operating its own plants in Iran, Malaysia, Bangladesh and Argentina. While it's still not known where the new Sino-Israeli cars will be built, they could very well find their way to our shores as Chery gears up for its assault on the American market.

[Source: Detroit News]

General Motors and Isuzu Motors Ltd. will get together for another joint venture to start developing new pickups together for emerging markets.  The JV, called LCV Platform Engineering Corp., has worked together successfully before on pickup development and production, and despite GM having sold off much of its Japanese investments (Isuzu, Suzuki, Subaru, etc.), the company says the work it has done with Isuzu to develop and produce pickups should continue due to its success in the past.

LCV Platform Engineering Corp. is a 50-50 joint venture between General Motors and Isuzu based in Fujisawa, Japan. The arrangement and accompanying facilities should be ready to go in September of this year.

[Source: Associated Press via the Detroit Free Press]