Fiat's new production facility at Ranjangaon on stream, rollsout new Fiat Palio Stile

Fiat marked a red letter day in its history in India with the formal inauguration of the Ranjangaon plant (near Pune) by the Chief Minister of Maharashtra, Shri Vilasrao Deshmukh. Also present at the occasion were Industries Minister of Maharashtra, Shri Ashok Chavan, the Secretary - Industry, Shri V.K Jairath, along with top officials and senior management of Fiat and Tata Motors. The occasion also saw the rollout of Fiat’s new Palio Stile.

The Ranjangaon project, which is a fruition of the industrial joint venture between Fiat Group Automobiles and Tata Motors announced in December 2006, will produce both Fiat and Tata Motors cars and Fiat powertrains. The total cost of the project will be Rs. 4,000 Crore.

The first phase sees the production of Fiat Palio Stile which has already commenced in February. The commercial launch is planned on April 4, 2007 at Mumbai. The body shop welding and assembling operations are in full swing. The plant will see a second step in 2008, with the production of Fiat’s new cars like the Grande Punto and the Linea. At full capacity, the Ranjangaon plant will produce in excess of 100,000 cars and 200,000 engines and transmissions yearly. The 1.3 multi-jet small diesel engine will be manufactured along with the FIRE petrol engine envisaged in different variants. The development of the Powertrain project will enable production of high quality engines and transmissions relying upon the expertise in development and production of Fiat Powertrain Technologies.

In a symbolic gesture, the first Palio Stile, rolled out from the facility, was handed over to Tata Motors, distributor of Fiat cars, undertaking marketing, sales and service of the range through a country-wide Tata-Fiat network of 63 dealerships covering 42 cities.

Commenting on the historic opening of the plant, Mr. Stefan Ketter, Senior Vice President Manufacturing of Fiat Group Automobiles, said, "It is a great day for Fiat in India. The Ranjangaon project with Tata is a crucial milestone in our agenda and its inauguration lays down the foundation for a long journey ahead. Our decision to shift our production activity to Ranjangaon is based on the objective of achieving cost efficiencies and building a world-class manufacturing plant."

Speaking on the occasion, the Managing Director of Tata Motors, Mr. Ravi Kant, said, "The Ranjangaon plant, in which Tata Motors will be investing as a 50% partner, is yet another firm step in the progression of the strategic alliance between our two organisations. The plant will help our products benefit from Fiat’s global manufacturing practices and technology."

The Ranjangaon plant is situated in an Industrial Development Zone, with a total land area of 8, 50,000 sq. meters.

About Fiat Palio STILE

Fiat’s new Palio Stile is available in two petrol engine options. The fuel efficient Palio Stile 1.1 (in three versions - SL,SLE,SLX) comes with a 4 cylinder 1.1l petrol FIRE engine , providing a maximum power of 57 PS @ 5250 rpm and excellent Torque of 92 Nm at low rpm of 2750. This enables a high fuel average of 15.5 Km/l under test conditions.

Design configured for the auto enthusiasts, the Palio Stile 1.6 Sport comes with a 1.6 litre engine with an increased power of 100 PS @ 5500 rpm with a torque of 137 Nm @ 4250 rpm. It is the only sporty B segment hatchback available in the country. Both models come with an Electronic multipoint fuel injection, 32 bit microprocessor Fuel system. The Palio Stile comes with a manual Gear Box 5 + R, all speed synchromesh and a front wheel drive.

The car is equipped with all desired features such as power steering, central locking, fire prevention system (FPS), engine immobilizer, fog lamps etc. The interiors of the Palio Stile are beige in colour, sporting a trendy two toned dash board, comfortable seats and a very low index of articulation (quietness of cabin). The new Palio Stile will be attractively priced and will be available in Tata-Fiat Showrooms across the country from April 5th.

Source : Equity Bulls

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