Fiat, SeverstalAvto to make diesel engines


MILAN, Dec 21 (Reuters) - Italian automaker Fiat said on Thursday it had agreed with Severstal-Avto to make diesel engines in Russia. It said in a statement its Fiat Powertrain Technologies (FPT) division had signed a memorandum of understanding with the Russian partner to set up a joint venture to make F1A engines. The engines would be installed in a Fiat van, the Ducato LCV, and a Severstal-Avto sports utility vehicle (SUV), the UAZ Patriot, it said.

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