Tata Motors and Fiat Group announce three additional cooperation agreements

Tata Motors Ltd has announced that the Company and Fiat Group on July 25, 2006 have announced the signing of a Memorandum of Understanding to establish an industrial joint-venture in India to manufacture passenger vehicles, engines and transmissions for the Indian and overseas markets. Both Fiat and Tata vehicles are expected to be manufactured in the same industrial facility.

Fiat will introduce, among others, its premium cars for B and C segments (Fiat Grande Punto and the new Fiat Sedan) and its successful small diesel engine. The facilities, based in Ranjangaon, Maharashtra, at regime, are expected to exceed an overall output of 100,000 cars and 250,000 engines and transmissions.

Fiat and the Company also announced they have agreed to enter into a 60 days study aimed at exploring industrial and commercial cooperation in Latin America. In particular, the study will be focused on different vehicles, especially utility vehicles and pickups and on exploring the opportunity of using the existing Fiat production facilities in Cordoba, Argentina. Products manufactured there would be sold in various Latin American and overseas markets under both Fiat and the Company brands.

While definitive shareholder, licensing and other agreements are being finalised, the signing of the M.O.U. for Indian operations and the study of the cooperation in Latin America reflect a growing commitment of the two organisations to work together and leverage mutual strengths to address key markets through a combined, complementary product portfolio and exchanges of technology.

In his statement, Mr Ratan N Tata, Chairman of the Tata Group and the Company, said, "This is the beginning of what promises to be a far-reaching, long term relationship between Fiat Group and Tata Motors. Both Companies have complementary strengths, convergent objectives and shared values. Together, we can meaningfully address markets in India and other select geographies, combining technologies, products and human skills of both organisations."

Source : Equity Bulls

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