BEIJING, Dec. 4 -- Fiat Powertrain Technologies SpA announced yesterday it will invest 22 million euros (32.2 U.S. dollars million) to build its first Chinese research and development center in Shanghai.

    The wholly-owned Fiat Powertrain Technology Shanghai R&D Co Ltd, located in Jiading District in west Shanghai, will focus on the development of engines, both gasoline and diesel, and transmissions for cars and commercial vehicles, the subsidiary of Italy's Fiat Group said yesterday.

    FPT Shanghai, covering a total of 37,000 square meters, will employ 100 engineers by the end of next year when it officially starts operation.

    "Developing anti-pollution engines would be one of the top priorities for FPT Shanghai as environmental protection is emphasized by the state government," said Paolo Emanuele Ferrero, vice president of FPT, product engineering, at the ground-breaking ceremony for the center yesterday.

    FPT has established 12 R&D centers worldwide with a major coverage in Europe. The Shanghai center is the first in Asia, a step ahead for the company to fulfill its target to serve local demands.

    "The new engineering center will not only be part of FPT's global network, but also allow us to join the steady growth in China's auto industry," Ferrero added.

    New engines and transmissions will be developed for Fiat's models in addition to supplying other car makers in China.

    Overseas car makers have been setting up R&D centers in China to meet the demand for eco-friendly and fuel efficient technologies.

    At the end of October, General Motors Corp said it would spend 250 U.S. dollars million to build a campus in Shanghai, including a research and development center for alternative fuels.

    (Source: Shanghai Daily)