Fiat, Tata sign venture deal

[Plex]

Italian car giant Fiat announced on Tuesday a cooperation deal with Indian manufacturer Tata to produce cars, engines and gearboxes at Tata's Ranjangaon plants in India.

Fiat and Tata would also examine possible expansion in Latin America.

"The plants, all at Ranjangaon, when running at full capacity, will produce more than 100 000 cars, and 250 000 motors and gearboxes," the Turin-based company said in a statement.

As well as the Indian deal, Fiat and Tata have agreed to examine possible industrial and commercial cooperation in Latin America, the statement said.

The companies signed a letter of intent on a 60-day feasibility study to examine the market, it said.

"The study will look at different sectors, in particular SUV (sports utility vehicle) and a pick-up to be produced in Fiat's plant in Cordoba in Argentina," the company said.

"These agreements reflect Fiat's strategy to cooperate in areas where it is strong, in order to jointly attack markets with complementary products and via technology exchange."

The cars planned for production at a plant at Ranjangaon are Fiat's Grande Punto model and a new, smaller model.

"In addition, small cylinder diesel motors will be produced in another plant," it added.

http://motoring.iafrica.com/newsbriefs/785692.htm