Fiat Joins The Ranks of Foreign Car Companies In Russia

Fiat was one of the only remaining major car producers which did not own a factory in Russia. This is no longer the case: Fiat is teaming up with Sollers of Russia in a EUR2.2bn joint venture that will produce cars and sports utility vehicles for the Russian market. Why do this now, after the Russian car market has been battered by the crisis with Russian passenger car sales shrinking to 1.9 million vehicles in 2009 from 2.3million in 2008? We suggest Fiat's rationale is based on a combination of motives: strong long-term prospects for the Russian car market, tariff-jumping

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