October 20, 2005
Fiat and Suzuki Look into a Licensing Agreement on Diesel Engines

The Automobile Sector of Fiat Group and Suzuki Motor Corporation (SMC) today announced the signing of a Letter of Intent (LoI) to analyse the feasibility of the production under license of the Fiat developed 2 liter JTD Multijet diesel engines, compliant with emission level Euro 5 and future emission requirements.

Production of engines in Asia is expected to commence by 2010. Annual output is initially estimated to be around 100,000 units with possibility to grow further. Engines will power a number of SMC models to be destined to various markets globally.

Within this framework, Fiat Auto and Fiat Powertrain Technologies will provide SMC with technological assistance and training activities during the various stages of the licensing agreement as well as a supply of 2 liter JTD Multijet until the start of production at SMC facility. With the aim of strengthening the strategic partnership between Fiat Auto and SMC, Fiat Group’s automotive components arm, Magneti Marelli, will supply next generation engine injection components and systems to SMC for installation on the licensed engines. This would allow SMC to benefit from state-of-the-art technology.