Moscow: Italian auto giant Fiat is due to announce a new joint venture in Russia on Thursday at an event attended by Russian prime minister Vladimir Putin, Russia’s main business daily reported.
Fiat chief executive Sergio Marchionne is also set to attend the event in Naberezhnye Chelny in southwest Russia, where Fiat models are already being produced by its Russian partner Sollers, Vedomosti reported.
The plant currently produces the Fiat Albea and Doblo models.
Citing an official and a banking source, the newspaper said the factory in Naberezhnye Chelny would also start producing the Fiat Linea and stop making jeeps for troubled South Korean car maker SsongYang.
Fiat and Sollers have been partners since 2005.
The Russian car market, once considered one of the most promising in Europe, fell by 49% last year compared to 2008.