Premier Ltd. and Fiat India Automobiles Ltd. have signed a three-year agreement for the supply of Fiat’s 1.3 litre multi-jet diesel engine to be used in Premier’s compact SUV RiO. Fiat will initially supply 28,000 engines to Premier during the agreement period. The engines will be made at Fiat’s Ranjangaon plant and supplied to Premier’s factory at Chinchwad , Pune; abot 60 kms away , enabling daily , ‘just-in-time’ deliveries. With this engine the Premier RiO will now be BS IV compliant thereby expanding its diesel offering to 14 cities like Mumbai, Delhi, Banglore, Ahmedabad, Pune etc. this engine will enhance the RiO’s power from 64 bhp currently to 75 bhp for the diesel version. It will also enhance the fuel efficiency from 16km/ltr to 18km/ltr. Premier also intends to set up 200 PASS (Premier authorized service stations) outlets that will also be equipped to support the RiO. As the plans are in the final stages of technical integration, Premier expect to start initial deliveries by August/ September 2012. Although not yet finalized, the ex showroom price of the RiO with the new engine is expected to be about Rs. 45,000 higher than the present diesel engine on compatible models. Such a price difference is not unusual between BS III and BS IV products due to technical enhancements.
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