Tata Motors And Fiat Chrysler Automobiles To Boost Partnership In India

Fiat Chrysler Automobiles wants to share engines and transmission. As the manufacturer is geared up for introducing new products in the country through joint manufacturing.

FCA is expected to locally manufacture the Jeep Compass for the Indian market at the Ranjangaon manufacturing plant in Pune. The company is evaluating how the sharing of engines and transmissions will impact on the pricing of the vehicle.

As per the sources, Fiat and Tata were in discussion about sharing a 2-litre engine which is intended to use in Jeep Compass or a C-segment Jeep which is codenamed as 556 and in Tata Motors premium SUV codenamed as Q5.

Speaking at the LA Auto Show, Jeep Global Head, Mike Manley stated that both the manufacturers are in regular talks on various opportunities, but declined to reveal any information.

Manley said, "From my point of view, I will be very open to discuss with Tata about opportunities, where collectively we could win and market could win. We can discuss on engines, transmission and some components of vehicle platforms for sure, those elements that will help build volumes and bring down price."

According to sources from the plant, both the manufacturers will come to an agreement in the near future. The Ranjangaon plant will be the fourth production facility for the Jeep Compass which is likely to be launched in second half of 2017.

The Jeep Compass will be followed by a smaller B Jeep which is codenamed as 526, which is still in the concept stage. If the concept is approved by the company, the Compass and the B Jeep are likely to add 1 lakh vehicles a year.

The Jeep Compass SUV will target the price range of around Rs 14 lakh to Rs 24 lakh in the Indian market. Manley stated that Compass SUV will help Fiat Chrysler in achieving annual sales of over two million units.

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