Support The Moscow Times!

Fiat, Sberbank Make Jeeps

MILAN — Fiat signed a letter of intent with Sberbank for a joint venture that will produce and sell Jeep-branded cars in Russia, Corriere della Sera reported Sunday.

A Russian official said in December that Fiat would sign an agreement to build a major new car plant in St. Petersburg during the first quarter of 2012. Corriere said the letter signed Saturday night envisages a joint venture in which Fiat would have an 80 percent share. Sberbank is set to finance the project by offering a credit line to the new company, the paper said without quoting sources.

Corriere said the joint venture would invest 850 million euros ($1.14 billion) in a St. Petersburg plant that would produce 120,000 cars a year. It said a second plant would be opened in Moscow.

(Reuters)

Read more

The need for honest and objective information on Russia is more relevant now than ever before!

To keep our newsroom in Moscow running, we need your support.