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Fiat to enter Chinese car market

Italian carmaker Fiat is to enter the rapidly growing Chinese automotive industry which will see it make cars and engines there from 2011, in a joint venture with Guangzhou Automobile Group (GAC). The deal will see the two firms invest more than €400m (£344m) in the project, including the construction of a 700,000 square metre production plant in the Hunan province. The companies said the joint venture would allow them to produce 140,000 cars and 220,000 engines per year initially, but said production could increase as the deal is extended.