Fiat will begin building cars in China from mid-2011 after signing a 50:50 agreement with Guangzhou Automobile Industry Group.
The joint venture allows Guangzhou Auto, a Chinese partner of Honda and Toyota, to build Fiat cars and engines for the local market but could also expand to manufacture up to 300,000 export engines a year.
The first model to be launched by the joint venture will be the Linea sedan (as pictured) which will be equipped by two variants of a 1.4-litre turbocharged petrol engine, delivering 90 and 110kw respectively.
Other models planned for production in China are the Bravo and Grande Punto.
Fiat began cooperating with Guangzhou Auto in early 2008.