|The Fiat Grande Punto|
Fiat Group and Tata Motors are establishing an industrial joint-venture in India to manufacture passenger vehicles, engines and transmissions for the Indian and overseas markets.
Both Fiat and Tata vehicles are expected to be manufactured in the same industrial facility. Fiat will introduce, among others, its premium cars for B and C segments (Fiat Grande Punto and the new Fiat sedan) and its successful small diesel engine. The first Fiat Punto produced in India is expected to be ready in December 2007 or in the beginning of 2008.
Fiat’s Punto hatchback, produced in gasoline, diesel and natural gas versions, has been a top-seller for Fiat, accounting for more than 6 million units since its launch in 1993.
The new Grande Punto is designed not to replace the original (which continues on sale), but to extend Fiat’s marketshare in the compact hatchback market by delivering a slightly larger (and more stylish) vehicle.
The facilities are expected to exceed an overall output of 100,000 cars and 250,000 engines and transmissions. Fiat and Tata also announced they have agreed to enter into a 60-day study to explore industrial and commercial cooperation in Latin America.
In particular, the study will be focused on different vehicles especially utility vehicles and pickups and on exploring the opportunity of using the existing Fiat production facilities in Cordoba, Argentina.
Products manufactured there would be sold in various Latin American and overseas markets under both Fiat and Tata brands.
This is the beginning of what promises to be a far-reaching, long term relationship between Fiat Group, Italy, and Tata Motors. Both companies have complementary strengths, convergent objectives and shared values. Together, we can meaningfully address markets in India and other select geographies, combining technologies, products and human skills of both organizations.—Ratan Tata, Chairman of the Tata Group and Tata Motors