On February 11, 2010, Russian automaker SOLLERS and its Italian partner FIAT plan to initiate a cooperative venture for a Russian production centre to develop and manufacture cars based on FIAT-Chrysler platforms.
This project will result in creating Russia's second-largest carmaker (after AvtoVAZ). It will control the most popular passenger-car market segments, will own intellectual-property rights for its products and will also provide engineering services and adapt new car models to the Russian market.
The new project's parameters include:
- annual production capacity up to 500,000 vehicles
- manufacture of nine new class C and D models, as well as SUV's and crossover vehicles
- intellectual-property rights for the vehicle platforms and vehicle models will be directly transferred to the Russian-Italian joint venture
- the export of at least 10% of vehicles, due to be manufactured in Russia;
- FIAT will relocate at least 50% of the production facilities, including production of engines and transmissions in Russia, as well as the creation of a technology park for component production;
- cooperative engineering-technical centre for development of new models and technical adaption to the Russian market.
Total investment, including assembly plant and R&D facilities, is estimated at 2.4 billion euros.
The project will be realised at the operational SOLLERS - Naberezhnye Chelny Automotive Plant site where a technology park and component production facilities will be established. There are also plans to cooperate with the Zavolzhsky Engine Plant production facilities and the emerging technology park in Togliatti in component production.
SOLLERS has been a local partner of the FIAT Group since 2006. Bilateral cooperation was launched under agreements allowing SOLLERS to assemble FIAT Albea sedans and FIAT Doblo wagons and exclusively distribute FIAT products in Russia. Both companies also agreed that production of FIAT Ducato light commercial vehicles would be relocated to Russia. SOLLERS bought a FIAT Ducato production license and production facilities making it possible to manufacture 75,000 Ducatos annually. Production was launched in May 2008.
SOLLERS has invested over $600 million in FIAT's production-expansion programme in Russia. Expanded passenger-car and commercial-vehicle production has enabled the FIAT brand to firmly reassert itself in the Russian market. FIAT sales in Russia were about 35,000 vehicles before the crisis. The dealer chain includes about 100 retail outlets in Russia. The success of the last three years in the Russian market has allowed FIAT Group and SOLLERS to enjoy a new level of cooperation and to establish a complete joint venture.