Tuesday, March 25, 2008

Fiat, Tata Motors JV to raise investment to $1 billion at the Ranjangaon facility in Pune

The Indian joint venture of Italy's Fiat and India's No. 3 car maker, Tata Motors plans to raise total investment to $1 billion to expand a unit for cars and engines at Ranjangaon near Pune in western India, the firms said on Monday.

Fiat India Automobiles, the equal joint venture, will spend 23.41 billion rupees ($581 million) to double output to 200,000 cars in four years to meet rising demand in India and for exports.

It will also expand engines and transmissions output to 300,000 units from 200,000 and also boost parts and accessories in four years.

Fiat currently makes the Palio hatchback at the plant and has finalized plans to start producing the Linea sedan and the Grande Punto.

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