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					Since 1978, the date on which Sevel (Società 
					Europea Veicoli Leggeri - European Light Vehicle Company) 
					was established in Atessa (Italy), cooperation between the 
					Fiat Group and the PSA Peugeot Citroën Group has offered a 
					blend of engineering and manufacturing know-how that places 
					it at the cutting edge of European light commercial 
					vehicles. 
					 
					Work started at the Val di Sangro plant in 1981, when output 
					was 350 vehicles per day. The plant was then extended to 
					cope with the manufacture of more products, until levels 
					reached the current capacity of 900 vehicles per day 
					(including the Ducato for Fiat and the Peugeot Boxer and 
					Citroën Jumper for PSA Peugeot Citroën). This number will 
					rise by more than 10% upon the commercial launch of the new 
					vehicle family. On 15 December 2005, Sevel reached the 
					production target of 3 million vehicles. If all these 
					vehicles were placed end to end, they would form a line 
					15,000 km long, roughly the distance between Val di Sangro 
					and Sydney, Australia. The co-operative venture between the 
					two Groups has been rewarded with great commercial success 
					in Europe. The venture has consolidated over the years to 
					the extent that it now covers most light commercial vehicle 
					customer requirements. 
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							Since 1978 co-operation between the Fiat Group and 
							the PSA at the Sevel plant in Italy has offered a 
							blend of engineering and manufacturing know-how that 
							places it at the cutting edge of European light 
							commercial vehicles.  | 
						 
						
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							Last year the 
							long-running Fiat-PSA joint venture Sevel plant at 
							Val di Sangro celebrated building its 3,000,000th 
							vehicle, a Fiat Ducato van. If all these vehicles were 
							placed end to end, they would form a line 15,000 km 
							long, roughly the distance between Val di Sangro and 
							Sydney, Australia.  | 
						 
					 
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					The agreement, extended to 2017 in January 2002, defines the 
					methods of developing and manufacturing two new light 
					commercial vehicle ranges and also the financial and 
					industrial aims of the design project. The rewarding 
					continuation of this venture will allow both partners to 
					share design and investment costs and thus make major 
					economies of scale. The design, known as X250 (the code used 
					to identify the new generations of Fiat Ducato, Peugeot 
					Boxer and Citroën Jumper) will be manufactured in Sevel’s 
					Val di Sangro plant from the second half of the year. A 
					second vehicle, manufactured in the Valenciennes plant in 
					France, will be presented at a later stage.  
					 
					In March 2005, the two Groups signed an agreement for the 
					development and production of a third vehicle family to 
					accommodate foreseeable growth in the European small vehicle 
					segment. This new minicargo vehicle will be built, under the 
					co-ordination of Tofas in it’s Bursa plant (Turkey), and in 
					close cooperation with both Companies.  
					 
					Under the terms of the 2002 and 2005 agreements, Fiat and 
					the PSA Peugeot Citroën have agreed to invest some €2.2 bn 
					in total. Nearly 50% of this sum has been earmarked for the 
					Italian plant where annual production is an impressive 
					230,000 units, a figure which could rise to 260,000 later. 
					In detail, investment in Sevel’s Atessa plant for the 
					development and production of future models – i.e. the new 
					Ducato, Boxer and Jumper vehicles – has amounted to more 
					than €1.1 bn, of which €700 m has been allocated for new 
					product development and the equipment of suppliers. The 
					other €400 m have been allocated for the extension of the 
					panel and assembly shops, the addition of new production 
					machinery, the construction of a new logistics yard and a 
					new water-based paintshop equipped with the most up-to-date 
					technology. Both partners have an equal holding and the 
					plant is managed by Fiat Auto. 
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