Fiat to make utility vans for Opel

MILAN: Italian auto giant Fiat and Opel signed an accord on Monday for the supply of general utility vehicles to the German unit of General Motors from the end of next year.

The two parties "have concluded negotiations and signed an accord under which Fiat will supply vehicles to Opel from December 2011," a joint statement said.

The vehicles will be made in Bursa, Turkey, at the Tofas plant run by Fiat and a Turkish firm, Koc Holding. The model, based on Fiat's Doblo, will replace Opel's Combo vehicle. It will be sold in Europe and other markets except those in North America.

Deliveries in 2011 were put at 6,000 rising to at least 250,000 in time while Tofas will make 1.3 million of the vehicles. Fiat has a stake in US automaker Chrysler and could take full control of the company which it took over as it emerged from bankruptcy.