Fiat Group Automobiles and Tata Motors on October 11th announced the signing of the definitive agreement for the establishment of the industrial Joint Venture, located at Ranjangaon in Maharashtra (India) to manufacture passenger cars, engines and transmissions for the Indian and overseas markets. Assembly of the new Fiat Palio at Ranjangaon has already commenced. The Joint Venture will manufacture Fiat’s premium cars, Grande Punto and Linea (respectively in the B and C segments), its successful 1.3 litre Multijet diesel engine, its 1.2 and 1.4 litre Fire gasoline engine and matching transmissions. The Joint Venture will also manufacture one of Tata’s next generation vehicles. The Ranjangaon facilities at regime are expected to exceed an overall output of 100,000 cars and 200,000 engines and transmissions. The overall investment will exceed €650 million. The plant will directly and indirectly employ more than 4,000 people. The distribution and service of Fiat branded cars in India will continue to be managed by Tata Motors in line with the agreement signed in March 2006. The Tata-Fiat dealership network, which is currently distributing and servicing the Fiat Palio, today numbers 65 dealers and is meant to expand to 100 dealers by mid-2008, when the new Fiat models are expected to be launched.
source:Tata Motors