TURIN - Fiat SpA Chairman Cesare Romiti has confirmed that Fiat Auto will build its Palio world car in Turkey. China is now the only unconfirmed location for building the car.
Fiat will invest $250 million at its Turkish subsidiary Tofas Turk Otomobil Fabrikasi A.S. Starting in 1998 it will produce 125,000 units a year of the Palio hatchback and wagon and Siena sedan. Romiti announced the plans in a letter to shareholders.
In a separate statement to the Istanbul Stock Exchange, Tofas said it would invest $262 million in the period 1997-1999. Its partners, Turkish Koc Holding and Fiat Auto, each hold a 37.86 percent stake in Tofas. Tofas is Turkey's leading carmaker.