Fiat and Russian Sollers to form joint venture - annual production of 0.5m cars announced

Italian Fiat and its Russian partner stock company Sollers will form 2.4 billion EUR worth of joint venture in Russia, which will, according to the announcements, produce about 0.5m vehicles a year.

- Sollers intends to make nine new models of various classes and exports at least 10% of production - Russian business websites announced today (February 11, 2010).

Russian Prime Minister Vladimir Putin and Fiat's CEO Sergio Marchionne will attend the signing of the Memorandum of Understanding between the two companies today.

Russian media say that Fiat, based on that plan, can expect 2 billion EUR worth of loan from the Government of Russia.

The plan is that Sollers start making automobiles from the combined product range of Fiat and Chrysler.

The announced joint venture is the first big foreign investment in Russian automotive market ever since the global financial crisis caused a collapse of demand and 49% drop in sales in 2009 in once quick-growing sector of Russian market.