Italian automobile manufacturer Fiat and Indian company Tata Motors Ltd. on Wednesday announced the signing of an agreement and a Memorandum of Understanding concerning the production of automotive vehicles.
The first agreement is for the establishment of a new joint venture for the production at the Fiat complex in Cordoba, Argentina of new-generation Tata pick-up trucks, which are to be sold under the Fiat brand. The production, which will begin in 2008 with an initial production capacity of 20,000 units, will necessitate a total investment of $80 million dollars.
Commenting on the JV, Mr. Ratan N. Tata, Chairman of the Tata Group and Tata Motors said, “I am very pleased at this first step in expanding the Fiat Group and Tata relationship beyond the shores of India, and would hope this would augur well for a truly global partnership across markets and business segments.”
Also on Wednesday, Fiat Iveco and Tata Motors revealed the inking of a Memorandum of Understanding to research the feasability of cooperation across markets in the area of commercial vehicles.
Fiat and India’s third-biggest car manufacturer, Tata Motors, have already agreed a deal for the production, beginning from 2008, of more than 100,000 cars and 200,000 engines and transmissions in India, at the cost of an investment of over $877 million.