Fiat and Russian automaker Sollers plan to set up a joint venture to produce the Italian company’s cars in Russia according to business daily Vedomosti.
The newspaper, which cited two government officials and a Sollers employee, said the joint venture would be created in the city of Naberezhnye Chelny in Tatarstan.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Fiat and Sollers would own the joint venture on a parity basis, an investment banker familiar with Sollers’ management told the daily. At present, Sollers-Naberezhnye Chelny produces Fiat Albea and Doblo vehicles, as well as South Korea’s SsangYong vehicles.
The plant has a capacity to produce 75,000 vehicles per year, but is not currently working at full capacity.
Production of SsangYong SUVs would be gradually moved to Sollers’ recently opened plant in Russia’s far east while the facility in Naberezhny Chelny would be fully intended for production of Fiat cars, Vedomosti was told. It is to produce Fiat Linea C-class sedans.
