Tata, Fiat sign JV agreement

Fiat Auto and Tata Motors Ltd. formally signed the joint venture agreement in December 2006, pursuant to the memorandum of understanding signed in July, to jointly produce cars and engines at Fiat’s Ranjangaon facility in Maharashtra, India. With capacities to produce 100,000 cars and 200,000 engines and transmissions yearly, the plant will be able to 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 shareholder partners. Aggregate investments in the JV will be made in a phased manner and may exceed Rs4,000 crores (US$902.32 million). The JV will start production of engines and new cars in 2008. (December 15, 2006)