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Fiat to expand Russian production
Luca Ciferri Automotive News Europe
November 7, 2008 06:01 CET
TURIN -- Fiat Group Automobiles and Russian carmaker OJSC-Sollers plan to build Fiat small- and lower-medium cars in Russia.
The two companies are considering building the Grande Punto and the Bravo at the Tatarstan plant they co-own starting in the second half of next year.
"The enlargement of the cooperation with Sollers is an important opportunity to further exploit the high potential of the passenger car market in Russia," Alfredo Altavilla, Fiat's head of business development, said in a statement.
OJSC-Sollers CEO Vadim Shvetsov said the Russian auto market still has great potential for growth despite the current slowdown.
"The demand for new cars will remain high and concentrated on the vehicles locally produced in Russia," Shvetsov said.
Fiat's partnership with OJSC-Sollers began in 2006 when the Russian company was called Severstal-auto.
The companies' joint venture is expected to start producing the Fiat Linea lower-medium sedan in Tatarstan early next year.
The joint venture also distributes Fiat cars in Russia.
In the first nine months, Fiat's Russian sales more than doubled to 22,808 units from 10,837 the year before, according to the Association of European Businesses in the Russian Federation.
Sales of foreign brands in Russia rose 40 percent to 1.61 million units in the same period.
You may e-mail Luca Ciferri at lciferri@craincom.de
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