Fiat delays its $1 billion investment in Russia

Article by Andrew Christian, on October 4, 2012

The overcapacity in Europe has made Fiat consider a delay in constructing a plant in St. Petersburg, the No. 2 biggest city in Russia, according to an official. St. Petersburg's deputy governor Sergey Vyazalov said that Fiat has plans to build an 850 million-euro ($1 billion) facility with annual capacity of 120,000 units in 2013.

However, Fiat has not been in contact with the regional administration for three months and has yet to submit an investment plan. He said Fiat has sufficient capacity in Europe to send cars to the market in Russia. This hints that the project will be delayed for several more years.

Last September 28, CEO Sergio Marchionne told reporters that Fiat is developing a strategy to expand in Russia. He added that the company is discussing the final details with Russian banks. He said that he believes that the Jeep brand’s entry to this booming market is the right choice.

The Moscow-based Association of European Business said that new-car sales in Russia increased by 15% to 1.9 million in the first eight months from the same period the previous year. Fiat brand sales fell by 74% to 5,054 as the Jeep brand tripled its sales to 2,957 units.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

You may also be interested

Iti mai recomandam

When the BMW 2002 Hommage Concept was first revealed to the public, not everyone was amused. It was designed to celebrate the 02 Series’ 50th anniversary yet people still needed...
by - August 26, 2016
Cadillac has this thing where they debut their concept cars at the Pebble Beach Concours d’Elegance. In 2011, the very impressive Ciel concept was unveiled at the said event and...
by - August 25, 2016
A year ago we were introduced to Mercedes-Benz’ F015 Luxury in Motion self-driving concept car. Although the German automaker is not on the forefront of the self-driving car revolution, it...
by - August 24, 2016
People in general have this certain fascination for all things “super”. Some of these have made it to headlines such as supermodels, action-packed movies featuring our favorite superheroes, and then...
by - August 23, 2016
For almost a century, Bentley has been one of the leading luxury motorcar manufacturers. It has always prided itself for producing hand-built luxury vehicles that have been given a lot...
by - August 16, 2016