Back in May, Fiat confirmed that it would start building its midsized Alfa Romeo 159 sedan at a plant in Wuhu, just outside of Shanghai, but there was no mention if any other brands were China bound. If this new deal gets the go ahead, Chery will most likely build Fiat's Linea sedan (shown above) in China and supply up to 100,000 engines annually to Fiat's China operations.
Some of the major hurdles Fiat is facing are a lack of suitable suppliers. It's more lucrative for a supplier, both in and outside of China to sell parts to European countries that already manufacture the specific Alfa Romeo and Fiat models. Then there are the issues with reliability and quality levels of Chinese built cars, and until these are addressed we won't be seeing any Fiat models built in China.
[Source: Automotive News - sub. req'd]