Fiat
India is getting a significant boost as it continues to
stare at it slowly-moving production lines as a deal has
finally been done to supply Maruti Suzuki with
additional 1.3 Multijet 16v engines assembled at its
under utilised Ranjangaon plant.
While Fiat India
Automobiles Limited (FIAL) struggles to attract India
customers to its own cars - it has in fact just launched
Model Year 2012 versions of the Punto and Linea, it is
finding a very useful second income stream from
supplying its powerplants to an outside competitor.
Maruti Suzuki already
uses the 1.3 Multijet 16v engine which it builds under
licence itself, but huge demand for its products in
India which is unable to meet in powertrain terms sees
it now commissioning FIAL (a 50-50 joint venture between
Fiat and India's Tata Motors) to supply it with
additional engines.
Suzuki, reportedly,
initially preferred to build further 1.3 Multijet units
under licence itself (it also has an as-yet-unused
licence to build a larger-sized Multijet unit), but a
struggle for internal capacity that cannot match demand
for its model range, along with the availablity Fiat's
almost idle Indian powertrain production lines and a
long negotiating process, means the Japanese carmaker is
likely to have secured a favourable deal to use Fiat to
supply an additional capacity.
According to a press
release issued today: "The parties have reached a
further agreement for the supply of Fiat’s 1.3L MultiJet
75hp BS-IV Small Diesel Engine produced under license by
Fiat India Automobiles Limited, the joint venture
between Fiat and Tata Motors, to Suzuki’s affiliate
company Maruti Suzuki India Limited (MSIL)."
The statement adds
that Fiat will supply up to 100,000 1.3 MultiJet 75hp
SDE engines per year to Maruti Suzuki starting from this
month for a period of three years for Indian market only
models: "The engine will be installed on Suzuki branded
vehicles produced in India by MSIL for the local
market."
"The production of the
1.3L MultiJet 75hp engine for MSIL will start in the
fourth week of January at FIAL’s Ranjangaon plant near
Pune in Maharashtra State," continues the press release.
"These volumes will be in addition to the 1.3L MultiJet
SDE engines already licensed by Fiat and manufactured by
Suzuki Powertrain India Limited."
ItaliaspeedTV
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Fiat 1.3 Multijet 16v
