Changan Suzuki is set to do an OEM project for making Fiat's Sedici crossover model later this year, said First Financial Daily today, citing a top executive of the joint venture.
  
Chongqing Chang'an Suzuki, a joint venture between Chang'an Motors and Suzuki Motors, will not have any technical obstacle to its partnership with Fiat in producing the Sedici crossover model jointly developed by Fiat and Suzuki. In the OEM project, Changan Suzuki will be responsible for making Fiat vehicles while the sales and (after-sales) services will be conducted by Fiat China.
Suzuki's facility in Europe has OEM operations for Fiat, and the Japanese carmaker's joint venture in China can do the same technically, said a technician from Changan Suzuki. The Sedici launched in Britain and Suzuki SX4 are actually the same model. The light diesel engine project that Fiat is to build in Chongqing will also support Fiat's Chinese production of its vehicles.

Last month, Fiat signed a memo of understanding with Chongqing Municipality for Fiat Powertrain Technologies (FPT) to set up a light diesel engine project in the southwestern Chinese city. The project is planned to have investment of 1.8 billion yuan from Fiat and will produce 100,000 engines annually.

After its joint venture with Nanjing Auto ended at the end of last year, Fiat is determined to recover in the China market. The Italian carmaker has begun to sell its cars in China as imported vehicles while looking for new Chinese partners, including talks with Chery Auto and Guangzhou Auto.