Fiat to supply cmmercial vehicles to Opel

Gasgoo From WSJ

Fiat SpA on Monday announced a deal to supply a range of light commercial vehicles to Adam Opel GmbH, the German unit of U.S. car maker General Motors Co. that Fiat tried to take over in 2009.

The Italian company said the initial supply will be up to 6,000 vehicles in 2011, but the total amount could reach 250,000, it added.

"This will extend the total lifetime production of this vehicle platform...to 1.3 million units," it said.

Fiat didn't disclose the financial details of the deal.

Fiat will build the vehicles with Koc Holding at their Tofas Turk Otomobil Fabrikasi AS joint venture in Bursa, Turkey.

The new range of vehicles, to be based on Fiat's Doblo, will replace the Combo model sold by Opel under the Opel and Vauxhall brands.

In 2009, Fiat offered to take over Opel, but it lost out to a consortium led by Canada's Magna International Inc.

Magna, however, was never able to close the deal after GM decided to keep the company and finance a restructuring of its operations in Europe by itself.

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