Fiat Parts Unit Forms Powertrain Venture in China

Fiat SpA's Magneti Marelli parts unit has established a $19 million joint venture in Changchun, China, with Changchun Fudi Equipment Technology Development Co. to make powertrain components.

Magneti Marelli will own 51% of the venture. Fudi will own the balance. The venture is scheduled to begin production by year-end. The facility will make intake manifolds, throttle bodies and other parts for Fiat and Chinese automakers in the region.

Magneti Marelli has been operating in China since 1996.

Fiat plans to open its first Chinese assembly plant in July with partner Guangzhou Automobile Group Co. The factory in Changsha will produce Alfa Romeo and Fiat vehicles and engines. The facility could eventually add production of Jeep SUVs designed by Fiat's Chrysler Group LLC affiliate.