Mazda, Fiat to assemble in Russia.

By bne IntelliNews June 24, 2011
EconMin announced signing an assembly deal with vehicle producer Mazda. Capacity of the assembly will amount to 25,000-50,000 vehicles annually, with components localization of 30% and total investment of USD 80mn. Also, a long awaited assembly deal with Fiat was announced, with annual capacity of Russian assembly of Italian carmaker of up to 120,000 vehicles. To remind, this month Russian car assembly major SOLLERS and Ford signed an agreement on creating a joint venture. Six Ford banded vehicle models are going to be assembled by Sollers, as well as new models that are to be launched in 2012-2014. Level of localisation of the assembly is going to be 35% at the start of the project, reaching 60% by the sixth year of operations. Investment in the project amount to RUB 74.5bn, out of which RUB 43bn are going to be invested in production facilities. State development bank VneshEkonomBank (VEB) is providing the joint venture a RUB 39bn loan for 10 years. Notably, previously SOLLERS was supposed to cooperate with Fiat on assembling up to 0.5mn vehicles annually under an agreement signed in February 2010, but company announced that negotiations with Fiat are seized, with SOLLERS remaining an exclusive representative of Fiat in Russia.

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