Italy, China sign 1 bln euros in trade accords
2009-07-07

Nations Italy Category Regions Regions Europe People Hu Jintao Event China-Italy Group of Eight Company General Motors Source (AFP)

ROME (AFP) - Italy and China signed deals worth a total of more than one billion euros Monday including a joint venture between auto giant Fiat and the Guangzhou Automobile Industry Group (GAIG), officials said.

The accords were signed during a visit by Chinese President Hu Jintao, who will attend the Group of Eight summit starting Wednesday in L'Aquila, central Italy.

The Italian and Chinese trade ministers signed protocols to boost investments in each other's countries as well as on cooperation in technology and tourism.

Fiat and GAIG signed an accord to build a joint factory in China, an investment worth more than 400 million euros (550 million dollars), the Italian group said.

Production is set to begin in the second half of 2011 with an initial annual output of 140,000 Fiat Lineas, a medium-sized family car, and 220,000 T-Jet engines of 120 and 150 horsepower.

The pace is expected to rise to 250,000 cars and 300,000 engines, Fiat said.

"It's an important phase, with a strong partner, in Fiat's internationalisation," Fiat chairman Luca Cordero di Montezemolo told reporters.

The Italian group a month ago signed an alliance with struggling US automaker Chrysler, taking a 20 percent stake that could rise to 35 percent and eventually to a majority share.

Fiat however is almost certain to lose a bid to take over German carmaker Opel, a subsidiary of US carmaker General Motors.

Canadian auto parts maker Magna is the favourite in that operation.

Also Monday, Italian insurer Generali said it would acquire a 30 percent stake in the Chinese asset management group Guotai for around 100 million euros (139 million dollars).