An agreement between Fiat Auto and Severstal Auto to produce two Fiat products in Russia has joined a growing list of Fiat Joint ventures, which include agreements to produce small cars with Ford, platform sharing and diesel engines with General Motors, light commercial vehicles and people movers with PSA Peugeot Citroen and diesel engines and four wheel drive vehicles with Suzuki.

The initial agreement will see the Palio and Albea models produced from parts sourced from the joint venture between Fiat and Tofas in Turkey. Expansion is planned for both the range of products, including the Fiat Doblo small commercial vehicle, and growth in the distribution of fully imported Fiat products in Russia.

Production will start in 2007 at the Severstal factory in Naberejniye Chelni near Kazan in the Volga region of Russia. The two companies are investigating further areas of cooperation.

Fiat is one of the pioneer companies in the automobile industry and it has produced more than 85 million passenger cars and light commercial vehicles, including no less than 400 models, since 1899, when the company was founded in Turin, Italy. The Fiat Group's Automobile Sector operates world-wide with the following brands: Fiat, Lancia, Alfa Romeo, Maserati and Ferrari.

OAO Severstal Auto is one of the biggest Russian automotive companies, which represents the famous Russian automotive brands UAZ and OKA and enjoys leadership positions in the Russian automotive market. The Company produces four-wheel drive vehicles - the UAZ SUVs, light trucks and minivans- and 'A' segment cars. Severstal Auto is also Russia's largest manufacturer of 4- and 8-cylinder petrol engines with displacements ranging from 2.2 to 4.7 litres.

Fiat Albea

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