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E650 million to be pumped into
Fiat-Tata JV
15 October, 2007 Fiat Group
Automobiles and Tata Motors plan to
enter into a joint venture company to
build engines, passenger cars and
transmission. An investment to the
tune of Euros 650 million will be
pumped into the company. The total
investment comprises an equal ratio of
debt and equity, and the remaining sum
will be invested in a phased manner.
The joint venture company, which is
expected to be christened by the end
of October 2007, will cater to the
needs of the Indian market as well as
the
marketplaces around the globe.
The joint venture company will
manufacture Fiat’s Grande Punto and
Linea, its 1.3 litre Multijet diesel
engine, 1.2 and 1.4 litre fire
gasoline engine and transmissions and
one of Tata’s next generation
vehicles. The Ranjangaon plants are
expected to surpass an overall yield
of 100,000 cars and 200,000 engines
and transmission sets, said a report.
The report added that the board of
directors from Fiat Group Automobiles
and Tata Motors will be in control of
the JV entity. While the CEO of Fiat
Powertrain Technologies and Senior
Vice-President (Business Development)
of Fiat Group, Alfredo Altavilla, will
take over as the Vice-Chairman of the
joint venture company, Tata Motors
Managing Director Ravi Kant will be
the chairman. Meanwhile, former Hero
Honda official Rajeev Kapoor has also
been nominated as the president and
CEO of the joint venture firm.
The JV entity is expected to put in
use almost 80 per cent of the total
capacity of engines for captive
consumption. The JV is also in talks
with a variety of manufacturers for
its engines and transmissions. A final
decision to this effect is expected to
be made in the next few months. |
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