From Automotive News

MILAN – Italian automaker Fiat said today that 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.