Fiat is reported to be ready to partner with Russia’s largest bank, Sberbank, to build a new plant in St Petersburg to produce Jeeps.
RIA Novosti quotes a source at the city’s administration and a source familiar with Fiat’s plans reporting that Sberbank is expected to finance the construction of the plant in return for a stake in the facility.
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Total investment is quoted at between EUR800-900m (US$1bn) but the level of funding from Sberbank has not yet been revealed.
Fiat signed an agreement in the summer with the Economic Development Ministry, to produce about 120,000 cars a year in Russia, as well as build an engine production plant. The company is expected to invest over US$1bn in the project. Initially, Fiat planned to build a car plant in the city of Nizhny Novgorod on the Volga, but later dropped the plans and started looking for another site.
