Fiat, Tata Motors float Rs 4,000cr JV

 The joint venture will start production of engines and new cars from the beginning of 2008.

 With capacities to produce in excess of 1,00,000 cars and 2,00,000 engines and transmissions yearly, the Ranjangaon plant will manufacture vehicles for the Indian and overseas markets. Both Fiat and Tata vehicles will be manufactured at the same facility, which will be managed equally by the two partners.

 Fiat Auto will introduce its premium cars for the B and C segments, namely the Fiat Grande Punto, and the Fiat Linea, whose worldwide premiere occurred at the Istanbul Motorshow in early November.

 Updated at 1430 hrs: Finalising their partnership, Tata Motors and Italian auto giant Fiat will sign a joint venture agreement to manufacture passenger vehicles, engines and transmissions for the Indian and overseas markets.

The two companies, which had, in July this year, signed an MoU to establish an industrial joint venture in India, will announce the road-map for taking forward the partnership later today.

The announcement comes days after Fiat got approval from Foreign Investment Promotion Board to invest Rs 2,000 crore in India that will be used at its plant at Ranjangaon in Maharashtra where the two companies will undertake joint production. (PTI)

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