INDIA BUSINESS WORLD OCTOBER (1st - 20th) 2007
The Month that was ...
FIAT, TATA MOTORS SIGN ON DOTTED LINE FOR INDIAN JV
Fiat Group Automobiles and Tata Motors have announced the signing of the 50: 50 joint venture to manufacture passenger cars, engines and transmission with an overall investment of € 650 million for the Indian and overseas markets. Out of the total investment, which will have an equal proportion of debt and equity, only around 20-25% has been brought in and the rest will be invested in a phased manner, a company official said.
The name of the JV is expected to be announced at the end of this month.
The JV will have an equal representation of five members from the two partners. While Tata Motors MD Ravi Kant will be the chairman of the JV, Fiat Powertrain Technologies CEO and Fiat Group Automobiles senior VP, business development Alfredo Altavilla will be the vice-chairman. Rajeev Kapoor, brought in from Hero Honda has been appointed as the president and CEO of the JV and will be in charge of the operations of the new entity.
The JV will manufacture Fiat's B&C segment cars, 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.
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