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Tuesday June 19, 3:29 PMFiat to provide engines for DaimlerChrysler trucksFRANKFURT, June 19 (Reuters) - DaimlerChrysler and Fiat have agreed a strategic cooperation deal in which the Italian company will provide truck engines for its German partner, DaimlerChrysler said on Tuesday."The first step of this agreement concerns the long-term supply of light-duty diesel engines to the Mitsubishi Fuso Bus & Truck Corporation, to be used in the Canter light commercial vehicle which will be marketed in major markets, including Europe and Japan," it said in a statement. Fiat will supply around 80,000 of its 3.0-litre F1C engines per year to Mitsubishi Fuso starting in 2009. Volumes will increase in subsequent years, it added. "Within the framework of this strategic supply agreement the two companies are also investigating further potential business opportunities in other markets, including southeast Asia," the statement said. The deal marks another step by Fiat to forge strategic alliances as a way to fuel growth. "Our ability to partner with DaimlerChrysler is confirmation that the decision to carve out our powertrain activities as a separate sector two years ago was the right one, and that we have products and technical skills to satisfy the needs of a demanding market," Fiat's chief executive, Sergio Marchionne, said. DaimlerChrysler's chief executive, Dieter Zetsche, said the deal helped both companies handle the investment and technical expertise to address emissions regulations. DaimlerChrysler shares were up 0.1 percent at 68.79 euros by 0721 GMT, while Fiat was up 1.2 percent at 21.81 euros. The DJ Stoxx European car sector index rose 0.5 percent. |
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