Tuesday, February 22, 2011

Fiat in Russia, who will be the new partner?

Fiat continues its "campaign of Russia", to the point that would prompt a "counter move" after the agreement was shaded with the manufacturer at the last moment Sollers has formed an alliance with Ford. By the end of February, in fact, could be communicated to the Plan B that would join in the important market of the former Iron Curtain, a market that is poised to become one of the first in the world for volume of sales.

The objective is to reach the Lingotto to produce (and sell) 280,000 vehicles by 2014. How? Alone or with a partner? The clock is ticking and you can bet that the Turin-Moscow air route will be pretty crowded with Fiat executives: the Russian government has in fact agreed that by February 28, foreign car manufacturers need to communicate what they intend to do in the country.

According to the news leaked out, the alliance with a local partner would be preferable, perhaps using existing production facilities, thus avoiding large amounts of money to invest in production facilities and brand new models. A "business partner" is also in line with what the Lingotto is practicing in all emerging countries.

Difficult to name names. The most serious candidate to make a deal with Fiat could be Avtovaz, the company located Togliattigrad that already has an agreement with Renault for the production of the Lada and was founded in Turin in 1966 from just under a series of agreements between Italy and the then Soviet Union.

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