Fiat, Renault strike deal on new light vehicle

Written by Associated Press | Milan | Updated: Jul 23 2014, 18:12pm hrs
AutoItalian carmaker Fiat has reached a deal with Renault on development of a new light commercial vehicle.
Italian carmaker Fiat has reached a deal with Renault on development of a new light commercial vehicle.

Fiat, which owns Chrysler, said the vehicle bearing the Fiat Professional brand would be an Italian design, built on a Renault platform at a plant in France. The first vehicles will be produced in 2016.

It is the first industrial partnership between Fiat and Renault, two of Europe's largest mass-market carmakers.

Fiat and Chrysler CEO Sergio Marchionne is finalizing the merger with Chrysler, which Fiat took over five years ago. One of the hallmarks of Marchionne's leadership at Fiat has been to seek out limited partnerships to share costs on vehicle development, while retaining control of distinctive design elements.