Iveco in Chinese Commercial Vehicle, Engine Deal

Posted on December 16, 2005

Iveco, Fiat's bus and truck unit, signed an agreement with China's Shanghai Automotive Industry Co. (SAIC), to set up a joint venture, which would take a 67 percent stake in Chongqing Heavy Vehicle Group. "The three companies have signed a preliminary deal to produce heavy commercial vehicles," said Zhu Xiangjun, the spokesperson for SAIC.

The cooperation would also produce diesel engines using Iveco technology, SAIC said in a statement. The companies did not reveal any financial details of the agreement, which is hoped to receive government approval in the first half of next year. Chongqing Heavy Vehicle Group would control the remaining 33 percent.