Fiat finalises its agreement with Mitsubishi to manufacture its version of the L200

Nine months ago, Mitsubishi Motors issued a press release stating that it was considering a possible alliance with Fiat Chrysler Automobiles so that the Italian company would build a pick-up truck based on the L200. Negotiations have progressed very positively over this year and a half and, as an executive at the Japanese company has confirmed to Automotive News, both parties are now working to define the final points of the agreement, which is expected to be announced before the end of June.

Fiat has practically secured the right to develop its own variant of the aforementioned pick-up. As we already pointed out in September 2014, it will be seen in Europe, although its main region will be Latin America. A source at Mitsubishi has also clarified that production will remain at its factory in Laem Chabang, Thailand, where the new L200 is assembled for most markets.

This decision is a very favourable advantage for the Japanese company. By being assembled in the same facilities, it will give both the opportunity to benefit from greater economies of scale and, specifically for Mitsubishi, to make use of the production capacity that would otherwise have gone to waste and made it harder to reach a desirable level of activity.

The model, which Fiat has yet to name, will use the mechanical components of the Mitsubishi L200, so a very similar range of engines can be expected. The Fiat Professional division of the Italian manufacturer will launch it in 2016, thus filling a gap above the Strada, another smaller pick-up built in Brazil that is still available in some European countries.

With Fiat’s new move and the entry of Mercedes-Benz into the segment, the best-selling rivals on the continent, led by the Toyota Hilux, the Ford Ranger and the Volkswagen Amarok -data from JATO Dynamics- will face a less comfortable situation than before. Pick-ups of this size saw a rise in sales of 5% in Europe in 2014 compared with 2013.

Source | Automotive News