Avtovaz plans to set up JV with Fiat for engine production
AvtoVAZ plans to establish a joint venture to produce engines with Italy's Fiat, the Russian carmaker's head said Thursday.
The joint venture should produce 450 engines annually. “If the new plant is built, it will involve $800 million in investment,” Vladimir Artyakov said. The engines will be equipped with a semi-automatic gearbox for luxury Lada cars and C class passenger cars, whose production AvtoVAZ will base in Togliatti with Canada's Magna. As part of a cooperation program with Fiat, AvtoVAZ also plans to produce B class cars, Artyakov said. “We have held the first working negotiations with Fiat, though no practical decisions have yet been made,” the businessman said. “The implementation of projects (with Fiat) is possible, but relevant decisions will take into account the economic and technological expediency of the project.”
Late in June AvtoVAZ announced its intention to cooperate with Fiat in the production of cars and engines. Fiat made an official response saying no negotiations were underway. Artyakov said Thursday AvtoVAZ would report on specific agreements with Fiat Friday. (rian.ru)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.