Serial production of Fiat's Albea sedan was launched last Friday at a plant owned by Severstal subsidiary Severstal-Avto in Tatarstan. Severstal-Avto signed a licensing agreement with Fiat Auto for the production of Fiat cars in Russia in late 2005. "Today, Fiat has returned to Russia with absolutely new products," Severstal-Avto CEO Vadim Shvetsov said at the opening ceremony. He said the Fiat Albea is an affordable car with "very good consumer characteristics." A total of 35 dealers are involved in Fiat sales in Russia, and the number will grow to 60 next year, Shvetsov said.

Deputy CEO of Italy's carmaker Fiat Auto, Ezio Barra, said the production of a second model, the Fiat Doblo, will start in January 2007, and production of the Fiat Linea will start by the end of 2007. "Production of Fiat automobiles will exceed 100,000 annually," he said In addition, Barra said, production of the Fiat Ducato will be launched in November 2007, making the total number of cars produced annually 175,000.
 

A number of foreign companies, including giants such as America's Ford Motor Company, Germany's Volkswagen and Japan's Toyota, have either already opened plants in Russia in the last few years or are planning to. The Economic Development and Trade Ministry said earlier that up to 900,000 foreign cars a year will be assembled in Russia by 2010, and that investment will hit $2 billion. With foreign automakers starting to produce moderately priced vehicles - the Renault Logan for example retails at around a no-frills $8,000 - ordinary Russians are increasingly taking them out of the showroom in preference to similarly priced domestic models, which are not always seen as being wholly reliable.