Italy’sAutomobiles SpA signs a letter of intent with longtime Turkish partner Tofas Turk Otomobile Fabrikas A.S. to build 120,000 light commercial vehicles annually in Turkey.
The two companies reportedly will invest €350 million ($470 million) in the project. The vehicle will be produced at Tofa’s Bursa plant in northwest Turkey.
Tofas, owned 37.9% by, does not identify the vehicle in announcing the deal, but a local media report says it will be a new-model Fiat Doblo commercial van.
Tofas is a joint venture between Fiat and Turkish conglomerate Koc Holding and the sole source for the Fiat Doblo, which mainly is exported to European markets.