A wave of rumors surfaced subsequently to the release of the announcement, indicating that the company’s revenues would see a 15 percent growth this year. Sollers, formerly known as Severstal Auto, is expected to develop its business through a $22.4 investment during the course of the current year.
The company currently assembles Fiat commercial vehicles (the two companies have established a joint venture in 2006), Russian UAZ off road vehicles, Korean SsangYong cars, Japanese Isuzu cargo trucks and ZMZ petrol & diesel powerplants. In addition to that, the company has developed a financial arm and plans to develop a dealer network in order to increase its revenues.
Various sources wrote that Sollers will debut the production of the ZMZ-405 engine for the Fiat Ducato commercial vehicles next year.
An media report released last month shows that Fiat will invest $3.29 billion in the joint-business with Sollers, in order to produce 500,000 Fiat and Chrysler vehicles per year in Russia. Most of the production is destined for the domestic market, while other markets will only receive a small amount of the Russian produced vehicles. Russia’s Prime minister, Vladimir Putin, attended the initiative’s signing ceremony, which took place in the town of Naberezhnye Chelny. The project will make the JV the second largest automotive producer in the country (the largest carmaker in Russia is AvtoVaz, a company that is 25 percent owned by the French automotive producer Renault).
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