Fiat agrees to build $263 mln China engine plant
SHANGHAI, Aug 21 (Reuters) - Fiat SpA (FIA.MI) has agreed to build a 1.8 billion yuan ($263 million) engine plant in southwestern China's Chongqing municipality with annual capacity of 100,000 units, Chongqing's economic planning agency said.
A memorandum of understanding signed by the Italian carmaker called for 70 percent of the light diesel engines made at the facility to be exported, the Chongqing Development and Reform Commission said in a statement on its website (wfg.cq.gov.cn).
It did not say when the plant would start operation.
Fiat's truck division Iveco has a joint venture with SAIC Motor (600104.SS) in Chongqing that makes heavy-duty trucks.
The Italian automaker has made little headway in the world's second-largest auto market, where General Motors GM.N and Volkswagen (VOWG.DE) have been reaping hefty profits.
Late last year, Fiat pulled out of a money-lossing car venture with Nanjing Automobile after the firm merged with SAIC Motor.
It is planning to boost its position by launching sales of imported sedans in the country for the first time.
Fiat's Bravo, Linea and Grande Punto sedans will be available through about 30 dealerships nationwide later this week, a company executive told Reuters, but declined to give a sales target. ($1=6.854 Yuan) (Reporting by Fang Yan; Editing by Edmund Klamann)
