With a partner like Sberbank, the country's leading bank, Fiat's return to Russia is in style. The lender has made it known that the letter of intent revealed yesterday for the production and distribution of cars and light commercial vehicles was signed "on 17 February" and, "in addition to the loan", the Bank is "considering" the participation in a joint venture "up to 20%, with the possibility of leaving the capital after a few years”.
As for the times, “the final decision is expected to be made in the next six months”, Sberbank agrees with Lingotto. A source close to the negotiations specifies that “the loan concerns the construction of plants for the production of Jeeps in St. Petersburg” and that other projects such as the production of commercial vehicles in the legendary Zil in Moscow depend on Fiat's choices.
Now, in short, the parties are getting to work to finalize the agreement which – the CEO of Fiat, Sergio Marchionne hoped yesterday – should lead by 2013 to the start of production of the new jeep in one of the two new Russian plants , Moscow or St. Petersburg. “All the parameters of the project – explain again from Sberbank – including the cost and the participation of the financial institution will be approved after an independent review of the project and the decision of the credit committee”.
The Lingotto plans to assemble vehicles, SUVs and potentially also commercial vehicles, through an agreement with the Moscow government. "The total investment in the project is initially estimated at 850 million euros," the bank said.
