UPDATE 1-Fiat, SeverstalAvto to make diesel engines


(Adds details, background) MILAN, Dec 21 (Reuters) - Fiat has agreed to join with Russia's Severstal-Avto to make diesel engines in Russia, widening its product range in a quickly growing market. Fiat said on Thursday its Fiat Powertrain Technologies (FPT) division has signed a memorandum of understanding with Severstal-Avto to set up a joint venture to make its F1A engine. The engine will be used in a Fiat van, called the Ducato LCV, and the Severstal-Avto sports utility vehicle ...

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