ON JUNE 20 Alstom and Fiat reached agreement for Alstom to take a 51% stake in the rolling stock subsidiary of the Italian company, Fiat Ferroviaria. The deal gives Alstom full access to Fiat’s tilting train technology, bogie designs and other components, and strengthens Alstom’s position in the Swiss and Italian markets.
Fiat Ferroviaria has annual direct sales of 375m euros and indirect sales of 110m euros through West Coast Traincare, its 50:50 joint venture with Alstom to maintain trains on Britain’s West Coast Main Line. The two companies have set up a consortium to supply and maintain Virgin Trains’ fleet of 53 high speed tilting trainsets for its West Coast franchise and have worked together on other tilting train orders such as the Alaris units in Spain.
Fiat Ferroviaria employs 2300 people in Italy, Switzerland and Britain. The transaction values Fiat Ferroviaria at 300m euros.