The agreement came in a memorandum of understanding the two sides signed on August 6. A formal joint venture agreement will be signed in October, sources say.
The first model to be assembled will be the Alfa Romeo 159 sedan. The second is likely to be the Alfa Romeo 147 five-door model. The cars are intended for the China market.
Chery is Chinaâ€™s largest domestic brand auto manufacturer, with sales of 302,478 units in 2006, according to Automotive Resources Asia.
The 159 will initially be imported as a kit and assembled at Chery, says a Fiat source. Foreign automakers bringing a new model into China commonly start by assembling from imported kits as they work to find qualified local suppliers.