MILAN (Reuters) - Italian carmaker Fiat SpA FIA.MI will build gearboxes in China as part of its plans to produce cars in the world’s biggest auto market next year, a source close to the deal said on Thursday.
The deal is due to be announced on Friday during the visit of China’s Vice President Xi Jinping to Rome, the source said.
Fiat signed a joint venture in 2009 with Hong Kong-listed Guangzhou Automobile Group Co Ltd (GAC) (2238.HK), China’s No.6 domestic automaker, to make cars in China.
The gearboxes will be produced in partnership with Guangzhou and Chinese firm Hangzhou Advance Gearbox Group, the source said, without disclosing financial details.
Reporting by Stefano Rebaudo; Editing by David Holmes