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Fiat teams with Chery

Fiat has joined forces with Chinese manufacturer Chery to produce 175,000 cars a year together from 2009.

The joint venture was confirmed after Fiat signed a letter of intent on Monday.

According to the agreement, Chery will supply 100,000 1.6 and 1.8 litre engines and gearboxes for Fiat cars made both within and outside China.

Fiat is not the only manufacturer to join forces with Chery this year. Chrysler approved a cooperation deal in July which will see Chery hatchbacks rebadged as Chryslers and exported to the USA by 2009.

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