SEVERSTAL AUTO

15.03.2006 Russian carmaker Severstal Auto has announced that it is discussing assembling the Fiat Grande Punto under license, in addition to the three models it has recently signed agreements to build

Russian carmaker Severstal Auto has announced that it is discussing assembling several further model Fiat models, including the new 'compact' category Grande Punto, under licence. Severstal Auto CEO Vladimir Shvetsov revealed these plans at a press conference which took place yesterday.

The burgeoning alliance between Severstal Auto, a part of the giant Russian steelmaking Severstal Group, and Fiat Auto has been growing very swiftly ever since it was announced in early January that they would be building the Palio hatchback and Albea sedan under licence from Fiat from the end of this year at the ZMZ factory in Naberezhnye Chelny. This was followed by an announcement in early February that Severstal Auto would also assemble the Doblò light commercial van range at the same plant, and that the company would also become an official distributor for Fiat Auto in Russia, and in the process set up their own 50-dealership strong network.

The news that Severstal Auto is now considering assembling the new B-segment Grande Punto, which is currently Europe's best-selling car, would be a major step forward for the ambitious young company. Building other Fiat models are also under consideration, although no details were identified. Vladimir Shvetsov also told the press conference that Severstal was considering building a new light truck range at their Ulyanovsk Automobile Plant (UAZ) plant and that the same plant would see production of a new US$20,000 UAZ 'sports pickup', based on the popular UAZ Patriot model, this year.
 
FIAT GRANDE PUNTO

The new B-segment Fiat Grande Punto has been a huge hit since it was launched in Italy last September and is now Europe's best-selling car.
FIAT GRANDE PUNTO

Leading Russian carmaker Severstal Auto has announced that it is discussing assembling the new Fiat Grande Punto under license, in addition to the three models - the Palio, Albea and Doblo - that it has recently signed agreements to build from the end of this year.


Severstal Auto, which is wholly owned by the giant steelmaking Severstal Group, was formed in 2002 and is now one of Russia's major automotive holding companies. It has controlling stakes in two of the country's biggest automobile factories: the Ulyanovsky Automobile Plant (UAZ) and the Zavolzhsky Motor Works (ZMZ) where the Palio, Albea and Doblò will be assembled.

Last year it reached an agreement with Korea carmaker Ssanyong to build an SUV under license. The ZMZ Micro-Volume Automobile Plant at Naberezhnye Chelny in the Volga Region is currently receiving a US$17.6 million investment funded entirely by Severstal-Auto to prepare for production of the three Fiat models. They aim to built 20,000 Albea and 10,000 Palio models a year by 2008, this rising to a combined total of 40,000 per year by 2010.

The Severstal Group, with its huge steelmaking facilities, has been working hard to break into the lucrative Italian steel market and the parent company's strategic considerations are believed to be central to Severstal Auto's growing relationship with Fiat Auto.
 
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Photos: Fiat Auto UK / © 2006 Interfuture Media/Italiaspeed