Powertrain to produce engines for Fiat Poland and GM

Fiat Auto Poland (FAP) has created F.A. Powertrain, a new subsidiary with base capital of euro50 million, to launch engine production at a cost of euro300 million slated for 2002 and 2003. The new entity will also take over part of Fiat's car component production and will provide its output to Fiat and General Motors (GM). "The company is owned by Fiat Auto, but in the future will be sold to the Powertrain Holding, in which Fiat and GM hold 50% stakes. We want to reach maximum capacity of half a million engines in 2005 and plan to export most of the production," said management board member of FAP Czeslaw Swistak. Local government has created a sub-zone of Katowice Special Economic Zone (KSSE) especially for the joint Fiat-GM investment. (Puls Biznesu, p.14)