New Delhi: Indian auto major Tata Motors entered into a Memorandum of Understanding (MOU) with Fiat on Wednesday to build pick-up vehicles bearing the Italian major's nameplate.
The vehicles will be manufactured in the Fiat Group's plant in Cordobo, which would have a capacity to produce 20,000 vehicles per annum.
As per the agreement, $80 million will be invested in the plant in Argentina, and the first vehicle is set to roll out in 2008.
According to the MOU, Tata's would give the license to Fiat for manufacturing this one-tonner pick-up model.
"I am very pleased at this first step in expanding the Fiat Group and Tata relationship beyond Indian shores," as quoted by PTI, Tata Group Chairman Ratan Tata said in a statement in Mumbai.
Tata and Fiat had formed a joint venture last year at an investment of Rs 4,000 crore to produce cars and engines of both the brands.
The joint venture would have a capacity to produce one lakh cars and two lakh engines annually.
The project, which will come up in Maharasthra, is expected to employ around 3,000-4,000 people.
The new Fiat pick-up vehicles will be powered by an FPT engine and positioned differently from the Tata pick-up and made available in 4x4,4x2 double and single cab.
The engine would be a JTD Diesel 2.3 litre, Euro four compliant manufactured at Fiat Powertrain Technology's facility in Sete Lagoas, Brazil.
Tata Motors considers Latin America as an important market and was exploring options to offer its products there and would leverage this co-operation for manufacturing and distribution.
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