Fiat Group Automobiles and OJSC Sollers (formerly Severstal-auto) announce the signature of a Letter of Intent (LoI) regarding the possible enlargement of their strategic cooperation with the focus on the launch of B and/or C segment Fiat branded passenger cars in the Russian Federation.

The LoI was signed by Alfredo Altavilla, Senior Vice President Business Development of Fiat Group Automobiles (FGA), and Vadim Shvetsov, CEO of Sollers, in the presence of Russian Federation President Dmitry Medvedev and Italian Prime Minister Silvio Berlusconi within the framework of the Russian-Italian high level summit in Moscow.

Under the LoI it is envisaged that the Fiat automobiles will be manufactured at the production facilities in Tatarstan of the 50-50 FGA and Sollers joint-venture that was established in June 2008.

The Senior Vice President Business Development of FGA, Alfredo Altavilla, said: "The enlargement of the cooperation with Sollers is another step in the strengthening of our strategic partnership which began in 2006 as well as an important opportunity to further exploit the high potential of the passenger cars’ market in Russia. It also reinforces our aggressively pursued strategy aimed at leveraging Fiat expertise, expanding its geographic reaches, filling its product offering and lowering its cost base."

According to Vadim Shvetsov, CEO of Sollers, the Russian automotive market still has great potential for growth. "Despite the current slowdown, the demand for new cars will remain high and concentrated on the vehicles locally produced in Russia. With a wide range of Fiat branded cars produced by our Russian JV, we will be able to make a very competitive offer to our customers."