Business Daily from THE HINDU group of publications
Friday, Dec 15, 2006
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Business Daily from THE HINDU group of publications Friday, Dec 15, 2006 ePaper |
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Cars Corporate - New Projects
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NEW DRIVE: Mr Ravi Kant (right), Managing Director, Tata Motors, and Mr Pravin Kadle, Executive Director, Finance & Corporate Affairs, at a press conference in Mumbai on Thursday. — Paul Noronha
Mumbai , Dec. 14 Tata Motors and Fiat Auto will jointly invest Rs 4,000 crore in a 50-50 joint venture to make cars and engines at Ranjangaon near Pune. The new manufacturing facility, to be created at the Fiat's existing plant, will have annual capacity to produce 1 lakh cars and 1 lakh engines and gearboxes. Addressing a press conference here today, Mr Ravi Kant, Tata Motor's Managing Director, said both partners would invest equal amounts in the new venture over a period of three years.
Employing Workers
The new plant will start making cars and engines by 2008, he said. The new joint venture, yet to be named, will employ about 3,000-4,000 skilled workers. He said both Fiat and Tata vehicles would be manufactured at the same facility. Fiat Auto will introduce its premium cars for the B-plus and C-plus segments thus avoiding overlapping of segments with its partner, Tata Motors. A first assembly line for Fiat cars has already been commissioned at Ranjangaon for Fiat Palio and Fiat Adventure models. The first batch of cars will be rolled out in early 2007, he said. The joint venture will manufacture the Fiat 1.3-litre multi-jet diesel engine, the 1.4-litre and a new 1.2-litre petrol engine, both part of the `Fire family and Fiat transmissions'. These engines will be used in the next generation of Tata's passenger car range said Mr Rajiv Dube, Vice-President, Marketing and Sales, Tata Motors. Negotiations are on with various companies on a global platform for outsourcing of these Fiat engines.
Increasing Outlets
Tata Motors will distribute Fiat brand of cars through the Tata-Fiat dealer network being set up as per the agreement entered in March 2006. The number of outlets would be increased to 100 from the present 42 outlets. As Fiat has shifted its production line to Ranjangaon, the company is open to all options with respect to the future of its existing manufacturing facility at Kurla, Mumbai, said a senior Fiat official. As part of their series of venturing into various commercial propositions, Tata Motors and Fiat are also continuing discussions for industrial and commercial co-operation in Latin America, as per a joint analysis, which began in July 2006. During an investors meet recently, Fiat S.p.A said that two companies would manufacture about 25,000 one - tonne pick up vehicles annually at Fiat's factory in Cordoba in Argentina under both brands. China Launch As part of the joint venture, Fiat truck unit Iveco will set up a joint venture with Tatas to distribute in Brazil. Tata Motors also is looking at launching its cars and commercial vehicles in China. According to officials, the company may have to set up a plant in China if it has to sell vehicles in that country.
Related Stories: More Stories on : Cars | New Projects | Alliances & Joint Ventures | Tata Motors Ltd
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