Fiat to produce 0.3m cars per year in Russia

MILAN, Feb 26 (Agencies): Italian auto giant Fiat outlined plans Friday to produce 300,000 cars per year in Russia, just days after it was replaced by Ford in a partnership there with Russian automobile group Sollers. Fiat said it had sent a memorandum of intent to the Russian government that "envisages the establishment of manufacturing capacity for up to 300,000 vehicles per year," including passenger cars and commercial vehicles. "The Fiat and (Chrysler) Jeep brands will be the mainstay of this project ... This plan will be accompanied by a commitment to further expand and strengthen Fiat's dealer network," the Italian company said in a statement. Fiat is merging with US auto giant Chrysler and has outlined plans for expansion in emerging markets. Industry analysts said the fall-out with Sollers may have happened after Fiat tried to drive too hard a bargain. Fiat announced last month that it had returned to profit in 2010, beating analyst forecasts. It enjoyed strong sales of lorries and tractors, with the Brazilian market performing particularly well.