Fiat Group Automobiles and Tata Motors today announced the signing of the definitive agreement for the establishment of the industrial Joint Venture, located at Ranjangaon in Maharashtra (India) to manufacture passenger cars, engines and transmissions for the Indian and overseas markets. Assembly of the new Fiat Palio at Ranjangaon has already commenced.

The Joint Venture will manufacture Fiat’s premium cars, Grande Punto and Linea (respectively in the B and C segments), its successful 1.3 litre Multijet diesel engine, its 1.2 and 1.4 litre Fire gasoline engine and matching transmissions. The Joint Venture will also manufacture one of Tata’s next generation vehicles. The Ranjangaon facilities at regime are expected to exceed an overall output of 100,000 cars and 200,000 engines and transmissions. The overall investment will exceed €650 million. The plant will directly and indirectly employ more than 4,000
people.

The distribution and service of Fiat branded cars in India will continue to be managed by Tata Motors in line with the agreement signed in March 2006. The Tata-Fiat dealership network, which is currently distributing and servicing the Fiat Palio, today numbers 65 dealers and is meant to expand to 100 dealers by mid-2008, when the new Fiat models are expected to be launched.

The Joint Venture will be governed by a Board of Directors with equal representation from the two partners. The Managing Director of Tata Motors, Mr. Ravi Kant, will be the Chairman of the Joint Venture. The Vice Chairman will be Mr. Alfredo Altavilla, the CEO of Fiat Powertrain Technologies and Senior Vice President Business Development of Fiat Group Automobilies.

Mr. Rajeev Kapoor has been appointed as the President and CEO of the Joint Venture. He will be in charge of the operations of the new entity, and will be responsible to the Board of Directors of the Joint Venture. Mr. Kapoor comes with a vast experience of over thirty years in the automotive field.

Commenting on the signing of the agreement, Mr. Alfredo Altavilla, CEO of Fiat Powertrain Technologies and Senior Vice President Business Development of Fiat Group Automobiles, said, “The signature of the Joint Venture in India and the continuous development of new opportunities confirms the strong motivation and understanding between Fiat Group and Tata Motors.”

Mr. Ravi Kant, Managing Director of Tata Motors, said, “The progress of all the joint initiatives between the Fiat Group and Tata Motors reflects the strong potential of our relationship in India and abroad.”

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