Fiat to open assembly in Russia in 2013.

By bne IntelliNews February 29, 2012
Fiat is going to open the assembly of Jeep branded vehicles at the end of last year, Reuters reports. Russia's largest bank Sberbank is going to be the partner of Fiat, with their shares in the new joint venture to be 20% and 80%, respectively. Investment into the assembly is going to amount to EUR 850mn at an output capacity of 0.12mn vehicles a year. Initially Fiat was planning to cooperate with Russian assembler SOLLERS, however, the agreement was not reached (SOLLERS is going to assembly Ford vehicles). This week it was also announced that in November 2012 Nissan Motors is going to start using production facilities of Russia's largest car maker AvtoVaz in Tolyatti to produce its new sedan Nissan Almera. The sales of the new light vehicle model are planned to start in November 2012. Previously Renault-Nissan announced that in 2012 production of five new vehicle models based on the same platform is going to start on AvtoVaz facilities. According to previous reports, Renault-Nissan (previosuly holding a 25% stake in AvtoVaz) is considering increasing its share in AvtoVaz to a controlling one. To remind, in November 2009 an agreement on company restructuring was closed with Renault-Nissan, under which Russian government was to invest from RUB 25bn to RUB 75bn to AvtoVaz for debt restructuring and ensuring short-term liquidity. Renault, in turn, was to invest EUR 240mn worth of technology as well as EUR 60mn for starting production of Renault and Nissan branded vehicles in Russia.

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