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Fiat to open powertrain r&d center
Source: www.autonewschina.com

SHANGHAI -- The new Fiat Powertrain Technologies research and development center will develop entire engines and transmissions, says Freeman Shen, president of Fiat Powertrain Technologies, China.

"China's local brands really need a lot of powertrain technology," he says. "If you want to have very good performance, you have to develop it locally."

Fiat invested 22 million euros (237 million yuan) in the new r&d center, located in the Shanghai suburb of Jiading. It will start operating at the end of this year.

Driving conditions in China place different demands on engines and transmissions than in Europe or the United States, Shen explains.

For example, Chinese cars mostly drive in stop-and-go traffic, he says. So the transmission must change gears every two minutes, says Shen.

Chinese brands looking to export are another target customer for Fiat Powertrain, says Shen.

The r&d center will eventually employ 250 engineers, says Shen. He admits that finding that many engineers in China's highly competitive market will be a challenge.

"We need a lot of good engineering talent," he says. "We are working with a lot of universities."

Fiat hires fresh graduates and sends them to Italy for training, says Shen.

Fiat is putting in systems from the beginning to protect its intellectual property, says Shen. For example, all employees will have to sign agreements. Also, special computer systems can help protect intellectual property rights, Shen says.

The new r&d center will mainly serve the China market, though it will also do work for Fiat worldwide.

Fiat Powertrain Technologies was formed in March, 2005, and combines Fiat's car and commercial-vehicle powertrain divisions.

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