New Fiat Palio Stile rolls out

Ranjangaon, Pune, Apr 2 (UNI) Maharashtra Chief Minister Vilasrao Deshmukh today inaugurated the new FIAT production facility at Ranjangaon with the rollout of the new FIAT Palio Stile.

Stephan Ketter, Senior Vice President, Manufacturing, of FIAT Group Automobiles, told mediapersons here the MOU with TATA's will help both the auto majors add to each others strengths.

The new models of Tata's engines will be rolled out from this facility, he said.

Fiat India Manager, Giovanni de Filippis said they would increase the present 63 dealers to around 100 in the near future and with TATA Motors technology and support make after the sales services available, providing interesting product range. The India factory will have cost advantages and will be used for exports, he said.

In the Rs 4,000 crore facility, the first phase has an investment of Rs 300 crore that will be increased steadily with TATA's sharing 50 per cent. The Palio will be 70 per cent localised.

The Ranjangaon project will produce both FIAT and TATA motors cars and FIAT powertrains. The new cars Grande Punto and Linea will be launched next year, he said without giving details of the prices.

The facility will produce in excess of 100,000 cars and 200,000 engines and transmissions yearly, he added.

To a query, Managing Director Tata Motors Ravi Kant said the facility will cater to the new generation of Tata motors. To another query, he said that ''the jv could also mean that FIAT markets the much touted Rs one lakh car of Tata Motors in Latin American countries.'' It is in the realm of possibility for FIAT to market the Rs one lakh car in Latin America.

To another query about Bajaj wanting to enter the four wheeler market, Kant said that there were all segments of buyers. He felt that the interest rate hikes would not affect the car market.

UNI