A few years ago, Chongqing City threw a controlling stake in the “Red Rock Auto†and attracted a heavy truck investment project of RMB 4.7 billion. Recently, the Chongqing Municipal Government has “successfully†and introduced a 1.8 billion light-duty diesel engine project solely funded by Fiat.
Annual production capacity of 100,000 units
Chongqing Municipal Development and Reform Commission announced on its official website on the 19th that Chongqing Mayor Wang Hongju led the team at the headquarters of the Fiat Group in Italy and signed a memorandum of understanding on cooperation with Fiat for the light diesel engine project of Fiat Power Technologies.
Chongqing Municipal Development and Reform Commission said: "Because of the successful implementation of the '908 Project', FPT plans to add another advanced light diesel engine project to the city. It plans to invest 1.8 billion yuan (renminbi), with an annual output of 100,000 units, of which 70% will be exported. The export part is provided by 'Shang Fei Hong' main components, and FPT will exclusively build an assembly plant in North New District.... Fiat said that the project will be combined with '908' to form the largest commercial vehicle of Fiat Group overseas and zero Component manufacturing base."
"The 908 Project" means SAIC Iveco Hongyan Commercial Vehicle Co., Ltd. (hereinafter referred to as "Shang Kehong") and SAIC Fiat Red Rock Powertrain Co., Ltd. (hereinafter referred to as "Shang Fei Hong") investing 4.7 billion yuan in Chongqing. Truck project.
In order to attract Shanghai Automotive Group, Italy Fiat and Iveco to invest in Chongqing, Chongqing transferred the 67% equity of the Chongqing Heavy-Duty Truck Group (the main production “Hongyan†brand heavy-duty vehicle) under the municipal government to SAIC in December 2005. Iveco Commercial Vehicle Investment Company (SAIC and Iveco each own a 50% joint venture company). "Shang Kehong" and "Shang Fei Hong" are the two companies established after the completion of this merger. Iveco is also owned by Fiat.
Add an engine factory
At present, it is not yet possible to confirm the displacement and specific models of the light diesel engine project set up in Shanghai by Shang Fei Hong, and whether the investment is one-time or in phases.
In June 2007, when “Shang Ke Hong†and “Shang Fei Hong†were established, they announced that the two companies had invested RMB 4.7 billion in the project, which consisted of a heavy-duty automobile factory and an engine factory. The engine factory was disclosed at that time. The total investment is RMB 1.7 billion and the production capacity is 100,000 units, of which 60,000 units are exported. This set of data is similar to the major data published by the engine plant introduced this time.
However, the previously announced engine plant was invested by "Shang Fei Hong," and the engine plant announced this time was solely funded by Fiat.
Wang Mingyu, deputy director of investment promotion in the northern district of Chongqing, confirmed to the “First Financial Daily†on the 20th that Fiat’s investment of 1.8 billion yuan was a new investment, and another engine plant was built. The investment was invested in the above 4.7 billion yuan. Outside. On the afternoon of the 20th, Chongqing was discussing with the Fiat further details of cooperation.
In October 2006, Wang Mingxi told our reporter that SAIC Group has decided to place its future heavy-duty vehicle development focus on Chongqing.
Want to lead the crankshaft production plant again
The Chongqing Municipal Development and Reform Commission website also showed that the Chongqing Municipal Government is trying to further introduce Fiat's crankshaft production plant. On the 20th, Wang Mingyu told this reporter that it was necessary to wait until the engine factory with an investment of 1.8 billion yuan had been implemented before starting the introduction of the crankshaft production plant project.
Chongqing Development and Reform Commission’s information also stated that at the signing ceremony, Fiat expressed that it will prompt the project to start as soon as possible and build Chongqing as soon as Fiat’s largest overseas manufacturing base. Wang Hongju said that the Chongqing municipal government will earnestly implement its commitments in terms of land, fees, and interest payments, and attach great importance to the protection of intellectual property rights.
However, it is not yet possible to confirm the specific content of "promise for land, fees and interest subsidies, etc." given by Chongqing.
Previously, Chongqing had prepared about 1,000 mu of land for the “Shang Kehong†and “Shang Fei Hong†investment projects in Handan, which is located in Huangmaoping, northern New District of Chongqing, where the vehicle project covers an area of ​​680 mu and the engine project Covers an area of ​​about 300 acres. The original heavy-duty automobile plant in Chongqing's Shuangqiao District will be transformed into a key component production base.
According to the established plan, the first phase of "Shang Kehong" and "Shang Fei Hong" will be completed in October this year.
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