Fiat has announced that it will produce Tata Motors’ new one-tonne pickup and a four-wheel drive car at its plant in Argentina.
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In a presentation to investors last week, Lorenzo Sistino, head of Fiat light commercial vehicles, said that the one-tonne pickup will be badged for both Tata and Fiat, and will go on sale in the second half of 2008. The Fiat version will also be exported to Europe.
Fiat’s plant in Cordoba was closed in 2000 because of the economic crisis in the country that stalled sales. It was a new plant and had been producing 178 platform cars. Fiat plans to produce around 25,000 units a year, according to Alfredo Altavilla, head of strategy at Fiat. Some transmissions will also be produced for PSA at the plant to exploit available capacity there.
The venture is part of a broader alliance with Tata Motors. In 2007 the two companies will start producing Fiat and Tata branded cars and powertrains for Indian and overseas markets. The plant in Ranjangaon will produce the Grande Punto, Linea and Tata models at an average annual rate of 130,000 units a year. They will also produce a small diesel engine and matching transmission at a rate of around 250,000 units a year.
Tata and Fiat’s commercial vehicle arm, Iveco, will also set up a joint venture to distribute commercial vehicles from both brands in Brazil, through an expanded Iveco network, said Altavilla.
