Chinese exec to head Fiat joint venture in China

By Joanne Jiu From:  www.gasgoo.com

Nanjing Fiat, the joint venture between Italian automaker Fiat and Nanjing Automobile Corp (NAC) is again managed by a Chinese executive after two years of unsatisfactory performance under stewardship of an Italian executive.

On 17th August, the company announced Yu Jiufeng to replace Andrew Humberstone as the chief executive and general manager of Nanjing Fiat, with Humberstone still serving as vice chairman of the board. Nanjing Fiat's daily operation will be managed by Yu Jiufeng, who was once in charge of Nanjing Fiat's purchasing and manufacturing.

Mr. Yu showed his management talents at Nanjing Yuejin Automotive Brake System Co., Ltd, where he assumed the leadership of the company since 2005.

Nanjing Fiat was established in 1999. Later, Fiat took on the controlling role after the joint venture failed to meet its market goal. However the Italian automaker failed to revive the business, which resulted in the new appointment.

Along with the executive change, Nanjing Fiat's sales continued a freefall over the past months. Nanjing Fiat's first half-year sales were 17,000 units last year. Howver, the company’s the half-year sales this year was 11,000 units while sales of this July dropped to only 622 units, which has damaged the company’s image.

Both sides felt upset about the current situation, but efforts made by both sides seem to have no effect so far..

On August 7, Fiat signed a preliminary agreement to create a joint auto producing deal with Chery Automobile, while NAC continued partnership talks with Shanghai Automotive Industry Corp. (SAIC).

Turning over the control of Nanjing Fiat to NAC could be a foray, commented Oriental Morning Post. The newspaper quoted from a confidential resource saying that two parties had reached a consensus: had Yu failed to revive Nanjing Fiat by the end of this year, the Italian side would again take control of the joint venture.