Against a background of Fiat’s falling out with its partner Nanjing Auto, it looks as if Chery and Fiat will sign a deal for Chery to assemble Fiat cars, according to Automotive News.

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China-based Alysha Webb reports that the pair will likely sign an agreement the week of Aug. 5 to form a joint venture.


She cites sources at Fiat and Chery.


The first model to be assembled will be the Alfa Romeo 159 sedan. The second is likely to be the Alfa Romeo 147 sedan. The cars are intended for the China market.


The report adds that the Alfa Romeo 159 will initially be imported as a kit and assembled at Chery.

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Fiat is seeking to end its relationship with Nanjing Auto and that should happen soon, say sources familiar with the two companies.


Chery already produces engines for Fiat’s cars in China and outside of China.


See also: EMERGING MARKETS ANALYSIS: Marchionne pulls no punches as Fiat plans to Chery-pick a new Chinese partner