Mahindra may back plan to convert Fiat’s car factory to production of EVs

Article by Christian Andrei, on September 23, 2010

Sicilian financier Simone Cimino’s plan to convert Fiat S.p.A.’s Termini Imerese car factory to produce electric vehicles is expected to get the support of Mahindra & Mahindra Ltd., the largest SUV maker in India. In an interview, Cimino said that he has a preliminary agreement with Reva Electric Car Co. for the production of electric cars at Termini.

Cimino plans to invest up to 450 million euros ($602 million). Last May, Mahindra agreed to buy 55% of Reva, a closely held company based in Bangalore, India.

Fiat aims to stop production at the losing factory, which has 1,400 workers in Sicily and builds the Lancia Ypsilon model, by the end of 2011. The carmaker, which is based in Turin, loses 1,000 euros on each car produced at the plant.

The reasons pointed to are a lack of infrastructure and high shipping expenses. Cimino said that it has the “financial strength” to take in the work force and develop the plant. It’s likely that the private-equity funds that he manages may contribute up to 100 million euros to the project.

Pawan Goenka, president of Mahindra’s automotive and farm-equipment unit, divulged that his discussions with Cimino had been “positive” and that they had talked about a plan for the Sicilian factory. Goenka said that Mahindra likes his proposal but that it is “still at a very preliminary stage.” Invitalia S.p.A., an adviser to Italy’s Industry Ministry, is expected to soon announce a shortlist of bidders for the Termini plant.

A meeting this week has been set up in Rome so that the Italian government can receive an update on the situation and get to talk with union officials and Fiat representatives. Built in 1970, the Termini plant is located in one of the poorest regions of the country. [via autonews - sub. required]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries