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Sunday, 30.09.2007
Fiat's aims for bigger market share with new Russian plant
Turin / Yelabuga. Fiat Group Automobiles and its Russian partner will open a new plant in Russia in hopes they can carve out a bigger share of that country's booming foreign car market. A company executive told Automotive News Europe (ANE) that the new factory will make about 60,000 units of the Fiat Linea lower-medium sedan each year.
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The plant, a 50-50 venture with Severstal Auto, will be located in Yelabuga, in Russia's Volga region, and will open in 2009.
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"Russia will soon become one of the world's most important car markets, not only by volume, but also for defining trends," Fiat group Marketing Director Luca De Meo told Russia-Now.
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Through eight months Fiat's Russian sales rose to 10,598 units, allowing the company to become Russia's 19th-ranked foreign brand - up from 45th last year, according to the Association of European Businesses in the Russian Federation.
This is great news for everybody in the car industry. From manufacturers to
sales people, car insurance providers and garage mechanics, every aspect of the car industry will boom. Opportunities for increased sales and high rates of employment will soar. The Russian market is growing at a remarkable rate.
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The new plant will be part of Fiat's worldwide manufacturing network, which means Severstal gains access to Western production techniques. Fiat group CEO Sergio Marchionne said in a statement that Fiat, in turn, will benefit from Severstal's knowledge of the Russian market.
(mig/.rufo/Moscow)
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