Chrysler-Fiat CEO Ditches Chicago To Do Russian Deal
February 10, 2010
In conjunction with the 2010 Chicago Auto Show, the Economic Club of Chicago was geared up for a Thursday speech from Fiat Auto Group and Chrysler Group LLC chief executive Sergio Marchionne.
Instead, Marchionne traded one snowy city for a place probably a lot snowier, bowing out of the Chicago engagement in order to attend the signing of a new Fiat venture in Russia.
Marchionne plans to be on hand tomorrow for the signing of a joint venture with Russian automaker OAO Sollers to produce Fiat cars at an existing Sollers assembly plant in Naberezhniye Chelny, located in west central Russia. Russia Prime Minister Vladimir Putin reportedly also plans to visit the plant tomorrow.
The Russian auto market tanked nearly 50 percent in 2009 and the Fiat venture is welcomed as the first foreign investment in the Russian auto industry since 2008. Just 1.49 million vehicles were sold in Russia last year, according to reports. Fiat sold 18,830 vehicles in that market.
The joint-venture plant has capacity for 80,000 vehicles annually. Fiat reportedly plans to build its Linea car there, a model the company also is preparing to produce in a joint-venture operation -- with Guangzhou Auto -- in China starting in 2011. - Bill Visnic, Senior Editor
Fiat Linnea photo courtesy Fiat Auto Group
Posted by Bill Visnic at 3:00 AM under Business , Chrysler , Companies , News | Comments (3) | digg this | Seed Newsvine
I still question whether Chrysler will be around when the promised new vehicles become available from Fiat.
Kia is outselling Chrysler in my region.
Posted by: billddrummer | February 10, 2010 at 4:38 PM
FIAT designed cars were made in Russia since 1971 by VAZ. They are known as Lada and were sold in Europe and Canada. They are based on FIAT-124 - 1964 European car of the year. So FIAT has a 40 y.o. history of cooperating with Russian and why FIAT still does not own Russian market is a mystery.
Posted by: savetheland | February 13, 2010 at 2:57 PM
It appears to me that FIAT/Chryseler has put their plans for the US on hold. I also understand that they are initiating a 2 week layoff at plants in Italy, as orders are cdown 50% over last year, according to a NPR broadcast. It appears the only FIA/Chryseler product that is selling is the FIAT 500...
Posted by: dretceterini | February 23, 2010 at 1:24 PM