AvtoVAZ plans to set up a joint venture with Fiat to manufacture vehicle engines, Kommersant reported Wednesday, citing Sergei Chemezov, CEO of Rosoboronexport, which controls AvtoVAZ.
AvtoVAZ would assemble 1.5 million engines per year under the joint venture, the newspaper said.
The venture would come four decades after Fiat helped AvtoVAz set up its operations in Togliatti. Fiat, however, denied it was in talks for a possible joint venture, Dow Jones news service reported.
Chemezov said AvtoVAZ would buy a new platform for A-class cars from Fiat to assemble a small car that would sell for around $6,700, Kommersant said.
The carmaker expects to sign the partnership agreement with Fiat at the end of summer or by the end of October, the newspaper said.