Guangzhou Automobile Industry Group and Fiat's joint venture will begin to build Fiat Linea at Panyu district of Guangzhou, Guangdong province, once it receives approval from government regulatory bodies, according to a Guangzhou-based daily.

Citing a notice from China's Ministry of Environmental Protection (MEP) published from May 31 to June 6, the newspaper said the car production joint venture will cost a total investment of 4.27 billion yuan (US$ 625.7 million), with 70 million yuan of the budget being used in the environmental protection devices. The venture, to be located in Hualong Town, Panyu district of Guangzhou, would produce 140,000 automobiles and 220,000 engines annually.

A PR executive for Fiat China said on June 4th that details including finally location of the plant are still awaiting government approvals. MEP is just one part of that procedure.

In mid-May Guangzhou Auto acquired one-third of a Fiat transmission plant in the eastern Chinese city of Hangzhou.