Sollers Ends Negotiations with Fiat Group for Joint Venture in Russia, Then Signs Deal with Ford

Italian automaker Fiat SpA and Russia's Sollers OJSC, backed out of a potential partnership today following the signing of a Memorandum of Understanding (MoU) in February 2010 for the launch of a Russian joint-venture to produce passenger cars and SUVs.

Fiat, which controls US automaker Chrysler, and Sollers did not give any explanation for the breakup of negotiations, with both companies simply stating that they intend to continue expanding their existing operations and activities in the region. The 2.4 billion-euro deal signed last year was aimed at producing as many as 500,000 cars annually by 2016 and would have been supported by a 1.2 billion- euro loan backed by the Russian government.

Literally only minutes after the joint statement by Fiat and Sollers, Ford Motor Company came out with a press release announcing that is has signed a Memorandum of Understanding with Sollers, under which the two parties intend to launch a new 50:50-owned joint venture called Ford Sollers for the production and distribution of Ford vehicles in Russia.

Under the new proposed joint venture with Ford, Sollers, which is the second largest producer of passenger and light commercial vehicles in Russia, local plants in Vsevolozhsk (St. Petersburg region) and in the Republic of Tatarstan, will manufacture a range of Ford passenger cars and light commercial vehicles at local production facilities.

“We are delighted to be taking this next step for Ford in Russia with our proposed partner, Sollers,” said Stephen Odell, chairman and CEO, Ford of Europe. “This is a great opportunity, and will provide Ford customers in Russia with more products and better service.

“We are inspired by the opportunity to work with Ford,” said Vadim Shvetsov, general director of Sollers. “We are confident that our mutual efforts on the development of manufacturing facilities, new product launches and localization of parts content will ensure success for our strategy, and a leading position for the future joint venture company on the Russian market.”

Ford, which has been producing cars in Russia since 2002, did not disclose the financial terms of the deal with Sollers.

Sollers Ends Negotiations with Fiat Group for Joint Venture in Russia, Then Signs Deal with Ford

Italian automaker Fiat SpA and Russia's Sollers OJSC, backed out of a potential partnership today following the signing of a Memorandum of Understanding (MoU) in February 2010 for the launch of a Russian joint-venture to produce passenger cars and SUVs.

Fiat, which controls US automaker Chrysler, and Sollers did not give any explanation for the breakup of negotiations, with both companies simply stating that they intend to continue expanding their existing operations and activities in the region. The 2.4 billion-euro deal signed last year was aimed at producing as many as 500,000 cars annually by 2016 and would have been supported by a 1.2 billion- euro loan backed by the Russian government.

Literally only minutes after the joint statement by Fiat and Sollers, Ford Motor Company came out with a press release announcing that is has signed a Memorandum of Understanding with Sollers, under which the two parties intend to launch a new 50:50-owned joint venture called Ford Sollers for the production and distribution of Ford vehicles in Russia.

Under the new proposed joint venture with Ford, Sollers, which is the second largest producer of passenger and light commercial vehicles in Russia, local plants in Vsevolozhsk (St. Petersburg region) and in the Republic of Tatarstan, will manufacture a range of Ford passenger cars and light commercial vehicles at local production facilities.

“We are delighted to be taking this next step for Ford in Russia with our proposed partner, Sollers,” said Stephen Odell, chairman and CEO, Ford of Europe. “This is a great opportunity, and will provide Ford customers in Russia with more products and better service.

“We are inspired by the opportunity to work with Ford,” said Vadim Shvetsov, general director of Sollers. “We are confident that our mutual efforts on the development of manufacturing facilities, new product launches and localization of parts content will ensure success for our strategy, and a leading position for the future joint venture company on the Russian market.”

Ford, which has been producing cars in Russia since 2002, did not disclose the financial terms of the deal with Sollers.

2011 Fiat 500 Coupé Zagato Concept

This year's edition of the Geneva Motor Show is buzzing with concept models of all sorts of sizes and shapes. The one you see pictured above is based on the popular Fiat 500 mini and is the result of the collaboration between the Fiat Group Automobiles' Centro Stile and the Zagato design house.

Showcased at the Fiat stand, the "500 Coupé Zagato" is said to have been inspired by the namesake predecessor built in the 1950 by the famous Italian bodyworker on the chassis of the original 500.

From the window line and below, the 500 concept is identical to the standard three-door hatchback model. However, the concept gets a completely new top with a sloping coupe-like roof featuring Zagato's trademark double-bubble design.

Other features include the burnished chrome exterior elements, 17-inch chrome shadow alloy wheelss with a brand new double spoked shape and synthetic inserts wrapped in 205/40 R17 tires and 4 perforated brake discs.

The concept is 3,550 mm long, 1,630 mm wide and 1,490 mm high, with a 2,300 mm wheelbase. Inside, Fiat says the 500 Coupe gets a 2+2 seating layout and a bespoke interior with sporty "diamond" seats trimmed in black and yellow two-tone leathers and other unique features.

Power for the 500 Coupé Zagato is provided by Fiat's turbocharged two-cylinder gasoline unit with 105 HP at 5,500 rpm and 155 Nm (114 lb-ft) of peak torque at 2,500 rpm, which promises reduced fuel consumption and CO2 emissions of just 95 g/km.

2011 Fiat 500 Coupé Zagato Concept

This year's edition of the Geneva Motor Show is buzzing with concept models of all sorts of sizes and shapes. The one you see pictured above is based on the popular Fiat 500 mini and is the result of the collaboration between the Fiat Group Automobiles' Centro Stile and the Zagato design house.

Showcased at the Fiat stand, the "500 Coupé Zagato" is said to have been inspired by the namesake predecessor built in the 1950 by the famous Italian bodyworker on the chassis of the original 500.

From the window line and below, the 500 concept is identical to the standard three-door hatchback model. However, the concept gets a completely new top with a sloping coupe-like roof featuring Zagato's trademark double-bubble design.

Other features include the burnished chrome exterior elements, 17-inch chrome shadow alloy wheelss with a brand new double spoked shape and synthetic inserts wrapped in 205/40 R17 tires and 4 perforated brake discs.

The concept is 3,550 mm long, 1,630 mm wide and 1,490 mm high, with a 2,300 mm wheelbase. Inside, Fiat says the 500 Coupe gets a 2+2 seating layout and a bespoke interior with sporty "diamond" seats trimmed in black and yellow two-tone leathers and other unique features.

Power for the 500 Coupé Zagato is provided by Fiat's turbocharged two-cylinder gasoline unit with 105 HP at 5,500 rpm and 155 Nm (114 lb-ft) of peak torque at 2,500 rpm, which promises reduced fuel consumption and CO2 emissions of just 95 g/km.

Abarth Scorp-Ion Sports Coupe Concept

Even though Fiat executives have been coy on a stand-alone sports car for the Abarth brand, the Italian firm went ahead and collaborated with the Istituto Europeo di Design of Turin (IED) for the creation of design study that will receive its grand premiere at the Geneva Motor Show in about a week's time.

The sports coupe is named Abarth Scorp-Ion and it was designed by seven IED students who worked under the supervision of designers Luca Borgogno from Pininfarina, and Luigi Giampaolo from Maserati.

The goal was to design a bespoke compact-sized sports car with lines that evoke the scorpion (the official symbol of Abarth) without any references to the Fiat brand, with which Abarth is often identified.

The result is a futuristic looking two-seater coupe that measures 4,010 mm in length, 1,905 mm in width, 1,192 mm in height, and rides on a 2,350 mm long wheelbase.

The Scorp-Ion is motivated by four electric motors, one on each wheel, but that's about all Abarth had to share with us for now. Further details are to be released at the Geneva Motor Show.

Abarth Scorp-Ion Sports Coupe Concept

Even though Fiat executives have been coy on a stand-alone sports car for the Abarth brand, the Italian firm went ahead and collaborated with the Istituto Europeo di Design of Turin (IED) for the creation of design study that will receive its grand premiere at the Geneva Motor Show in about a week's time.

The sports coupe is named Abarth Scorp-Ion and it was designed by seven IED students who worked under the supervision of designers Luca Borgogno from Pininfarina, and Luigi Giampaolo from Maserati.

The goal was to design a bespoke compact-sized sports car with lines that evoke the scorpion (the official symbol of Abarth) without any references to the Fiat brand, with which Abarth is often identified.

The result is a futuristic looking two-seater coupe that measures 4,010 mm in length, 1,905 mm in width, 1,192 mm in height, and rides on a 2,350 mm long wheelbase.

The Scorp-Ion is motivated by four electric motors, one on each wheel, but that's about all Abarth had to share with us for now. Further details are to be released at the Geneva Motor Show.

New Jeep 3.0-liter V6 Turbo

Given that over forty per cent of all cars sold in Europe are diesel-powered, any brand that wants to be successful in the market must have diesel options in its range. Following the presentation of its new 3.0-liter V6 turbo diesel on the Chrysler 300's European clone, the Lancia Thema the Fiat Group is now introducing the oil-burner to Jeep Grand Cherokee the range for Europe and other diesel markets around the world.

The new V6 diesel engine is built by VM Motori and has been developed together with Fiat Powertrain, which is a subsidiary of the Fiat Group. The 3.0-liter unit features Fiat's MultiJet II system which enables up to eight injections per cycle, with the possibility of managing the two main injections in a single modular profile (IRS – Injection Rate Shaping). It is also fitted with a single Garrett VGT 2056 turbocharger with variable turbine geometry.

In the Grand Cherokee, the 3.0-liter V6 diesel is offered in two guises, the most powerful of which produces 241HP at 4,000 rpm and 550 Nm (406 lb-ft) of peak torque at 1,800-2,800 rpm, with the company claiming a 10 percent gain in power and eight percent more torque than the engine it replaces.

Despite the improved performance, Jeep said fuel economy for the 241HP version returns 8.3 lt/100km (equal to 28.4 mpg US) on the combined European cycle, an improvement of 17 percent over the prior diesel engine. CO2 emissions (are also reduced by 17 percent, now at 218 g/km.

Jeep will also offer a lower-output version of the 3.0-liter V6 turbo diesel rated at 190HP at 4,000 rpm and 440 Nm (324 lb-ft) of peak torque available from 1,600 to 2,800 rpm. The low-output version of the turbo diesel engine will be standard on Laredo models and optional on the Limited

The new 3.0-liter turbo diesel variants of the Grand Cherokee will receive their world premiere at the Geneva Motor Show next week and be available in Europe by the end of the first half of 2011.