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Fiat’s joint venture in China storm this year is probably the most exciting car circles a drama. To the interests of the parties involved because of disputes related to the different business strategy, from beginning to end, like a regiment constantly tangled twine scissors. In a chaos, Nanjing Auto, Fiat, Chery, SAIC these four protagonists, or radical, or forbear, or testing the waters, or calm and collected and the expression of different colors, different thoughts, coupled with more than a joint venture case interwoven throughout, make this drama so far from the climax continued.

Information facts: the fate of twists and turns in South Asia

Nanjing Fiat (referred to as South Asia) poor performance continued in 2034, this storm has already paved the way for a full buried in 2034. 2006 Fiat Part of the “Renaissance Plan,” a success, ending 17 consecutive quarters of losses, the Italian who finally have energy to solve the grievances that has very deep problems.

In April of this year, Fiat Auto, said the South calling for additional investment in South Asia, South steam no response; June, Fiat CEO Sergio Marchionne inner trip to China, the NAC again expressed dissatisfaction with questions and claims that: In view of NAC do not intend to make additional investment, Fiat plans to withdraw from South Asia project.

His remark, the media suddenly an uproar in the public opinion inside and outside the vortex, the South Asian Association for the establishment of eight-year old joint venture company, precarious.

Surprisingly, at this time has chosen to silence NAC. The reason for NAC at this time in South Asia have been completely disappointed, has all the resources and energy into their own brand “MG” project in South Asia, it has been powerless to change things, money money, VIP no one, simply indifferent.

Projects in South Asia have been identified as ironclad “disintegration” of when the mouth, June 30, Fiat has thrown a speed up China’s expansion plan: the end of 2007, GrandePunto, Bravo, Linea3 subsection vehicle imports from China; the end of 2008, GrandePunto, Linea achieve China’s production; Alfa Romeo 159 transition from import vehicle produced in China.

If a stone thrown into a pool of stagnant water, micro-fluctuations in Fan Chu Lan rapprochement between the two sides, additional investment news: Fiat side said, South Asia, the two sides will each invest an additional 300 million euros (30 billion RMB), the introduction of follow-up Fiat models.

Both stiff and not crack reunion between the outcome of this is also the industry’s expected, have guessed that the Fiat headquarters in July 2 re-release information, denied the claim. This makes the outcome appears to be down again hung up. But from beginning to end, NAC has always been to remain silent.

Fiat’s stand on this swings back and forth? Why not NAC soon as? The other two main characters, in which SAIC and Chery also played a kind of push hands? End of things, what is?

News Behind: SAIC, or behind the scenes Hand

During this turmoil, Fiat’s attitude, from the frustration, anger, and must split, to restore calm, take the initiative to throw plans, and then to deny, twists and turns, almost capricious. So sitting on the fence, what exactly What are the considerations?

“Fiat has repeatedly sitting on the fence, SAIC is perhaps the biggest reason.” Industry analysts believe that one.

Analysts believe that Fiat was determined to break the Southern steam, in addition to demonstrations emperor to abdicate, the biggest reason for this is from SAIC. South Asia project almost falls apart at a time when Fiat in cooperation with the Shanghai Automotive outgoing affair. This is not so much a coincidence, but rather that Fiat, SAIC has given a hint, so that the latter determined to abandon the South steam away.

For SAIC, the split South project, equivalent to get rid of the burden can greatly reduce the merger NAC resistance. But SAIC cars for Fiat not interested in the project. So then SAIC issued a statement: On the Shanghai Automotive Industry Group and Fiat Group to cooperate in the car project, is a misrepresentation.

SAIC find no fruit (here also looked Chery), in addition, see the NAC and SAIC joint venture around the corner, at this time Fiat will be looking to re-invest in NAC. By the end of June, Fiat unilateral release signal, and joint-venture partners in the replenishment 600 million euros to develop business in China. Have guessed that this signal after being released, NAC still remain silent. Embarrassment under the Fiat headquarters in early July of the disclaimer, is can be regarded as a face-saving move.

The deadlock is not broken, the root node is where SAIC. , “A joint venture between SAIC and NAC co-operation is in progress. How to cooperate? It together? Have not been determined, NAC how you comment? Fiat, how dare an additional large sums of money come in so fast? Fiat is willing to invest, just wishful thinking unilateral, or simply in testing the waters. “an industry analysis.

Fiat repeated, of course, the Italian people’s anxiety and mood in which even the main reason is the deadpan SAIC, in which the Fanyunfuyu. Southern steam, like a marionette-like, in addition to remain silent, but also what to say?

As for the other characters Chery, although NAC chairman Wang Hao-liang had had frequent contacts between Nanjing and Wuhu, Chery was also called to make disk access, equity in South Asia. But was Chery chairman Yin Tongyao, declined on the grounds that China’s national conditions and the complexity of cross-regional acquisitions difficult to duplicate the success of the original model of Chery, and even have the opposite effect. Smart Chery, just saved his own most in need – the introduction of Alfa Romeo 159, the lack of high-end cars Chery, the scenery than the full surface of a joint venture of such things to be more cost-effective.

Ought to be doing do, to say to say, and South Asia, the project’s future, this is already out of the scope can be controlled by Fiat.

Market Outlook: waiting for SAIC Fiat stand

Although up to now, there is no official agreement was signed or news release, although the future of South Asia, the project is still elusive, but does not prevent us from clearly outlines the Fiat in China’s current patterns and trends.

Commercial areas, currently Fiat’s two partners in the Southern gas, SAIC, cooperation, growth momentum is good.

Passenger car field, is now almost certain is that Fiat Chery will be put into the high-end Alfa Romeo 159 models. Informed sources in less than a month, there will be to determine the news release. Chery factory is currently more than 50 million units capacity, but also continue to expand in the. Sales last year, more than 30 million cars Chery, Chery still has great capacity remaining. In addition, the current sequence of its products, the lack of high-end models, Alfa Romeo was almost the only option. As for the cooperation, estimated that the transfer of technology-based.

South Asia project, although the Fiat stand will GrandePunto, Linea domestic investment, but the NAC’s funding gap, as well as a joint venture with SAIC outcome uncertain, so the plan became Fiat’s castles in the air. Only this Fiat plans, it would seem, only waiting for SAIC merger with Nanjing surfaced. When a reporter Nanjing Fiat PR stakeholders dial phone, its only taboo to tell reporters, “Recently there will be good news.” At the same time, journalists from other channels have also learned that three Fiat cars are imported through the 3C certification, Nanjing Fiat system, part of the dealers have already received the new product training programs. In view of this, a person familiar with Fiat in the industry, says that various signs show that Fiat Auto and the negotiations between the South should have achieved substantial progress.

Perhaps the day of a breakthrough in South Asia project is a joint venture with NAC in the case of SAIC was finalized when the frame.

SAIC and NAC combined intervention of the central ministries, is now almost a foregone conclusion, when SAIC is likely to take over South Asia. The first step in taking over the game, may be according to Fiat’s request, an additional 3 billion euros (30 billion yuan) investment.

In accordance with Fiat’s plans, in the GrandePunto, Linea began importing sales within 12 months, that is no later than the end of 2008, these two vehicles will result in domestic production. Left Fiat, SAIC, Nanjing Auto’s time is already limited. In the past year and a half years, Fiat in China can transform a new look for do? The survival of South Asia, from now may depend on the face of the SAIC.

Expert opinion: “Chinese-style divorce,” is generally the status quo

Famous auto analyst Jia Xinguang

Do not think that NAC and Fiat ups and downs of marriage situation is the case, in fact, this is the domestic automobile joint ventures in the general living situation. Just like “Chinese-style divorce” in the same marital status, and more joint enterprises are only starting from the surface harmony, the contradiction between foreign and Chinese are increasingly deepened, and some even better than the Fiat Auto South good. The reason why NAC and Fiat’s marital status has been linked was uproar, but the Italians anxious, and it just pass out.

Why is there between foreign and Chinese-funded so many contradictions? The most important difference is the strategy of foreign joint venture aims to capture the market faster, while the Chinese joint venture is designed to learn about technology, but the 50:50 joint venture between China-style control system of checks and balances, decided to enterprise integration difficulty, and this problem will become in future the joint venture will be more and more prominent.

“Benefits return to a joint venture company”, is in the current institutional arrangements for the equity ratio of 50:50, the best mode of cooperation. But this is easier said than done but it is very difficult. Since both sides represent the two major groups and foreign interests and the strategic direction, growth stage, the objectives are different, it is difficult to find the direction of common interest. Similar to the NAC and Fiat, this kind of contradiction, as further fierce market competition, once the joint venture effective landslide, will be more and more exposed.