Fiat S.p.A., an Italian automobile manufacturer, just ended a money-losing Chinese joint venture, with Nanjing Automobile (Group) Corporation, one of the oldest Chinese automobile manufacturers. The firm will still keep working with Nanjing in making vans and parts. But, analysts say, the break-up casts doubt on the capability of Fiat to meet its target of having 300,000 units sold in China by 2010.

Separately, Fiat merged with Shanghai Automotive Industry Corporation (SAIC), also a Chinese automobile manufacturer. But, the company is considered bigger than Nanjing Automobile. In fact, it ranks the third among the ‘Big Five’ Chinese automakers, where it joins the First Automobile Works, Dongfeng Motor Corporation, Chang’an Motors, and Chery Automobile.

Fiat sees the rapid growth of the Chinese market. China is currently the world’s fastest-growing auto market, with 8.5 million sales forecast this year. Now, Beijing invites foreigners to import their cars, provided that they also make cars in China.

SAIC Motors in Shanghai says that it desires to be one of the world’s top six auto producers by the end of this decade. So far, in 2006, Fiat sold far fewer cars than it expected to in China – a far fewer than SAIC and its US and German partners: General Motors and Volkswagen.

Chery Automobiles, the largest independent Chinese auto manufacturer, appeared to be the most probable successor to Nanjing as a partner for Fiat in the passenger car segment in China. That would mean we might expect something better from Fiat in the coming years.