Fiat still considering new brand for low-cost car
Fiat hasn't ruled out the possibility of launching a new low-cost brand, according to the latest reports. The new brand – which could, like Abarth, revive one of the many dormant auto marques under the Fiat auto umbrella – would target arch-rival Renault's Dacia subsidiary in offering consumers (primarily in developing markets) cost-effective modes of transportation, in line with the Tata Nano. Those in the know will point out that Tata and Fiat have close ties, and the Indian automaker could be called to contribute to the project.
Although Fiat recently acquired Zastava, reports indicate that the Serbian plant will be used for the upcoming Fiat Topolino and not for any new lost-cost vehicle. The latter could, instead, be built by Fiat's subsidiary in Brazil, where the Italian automaker already produces vehicles and enjoys a strong market share. Sources suggest the new vehicle, code-named Project 327, could go on sale in Europe as early as 2011 with a €6000 sticker price.
[Source: Automotive News Europe (sub. req'd) and Reuters]
Reader Comments (Page 1 of 1)
Frank 6:21PM (5/21/2008)
A question that springs to my mind is, does Fiat really need to consider a new brand for low-cost car?
Frank
http://www.reviews4cars.com
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Rick 6:40PM (5/21/2008)
Why not. Everyone else is doing it, as the article implies.
SPG 6:40PM (5/21/2008)
Funny how many ultra low cost Eastern European brands made cars for decades from old Fiat tooling.
I can however, see Fiat's position and understand their desire for an ultra low cost brand.
It would be a chance to get some of their bottom of the price heap cars off the Fiat logo too.
Ian B. 6:53PM (5/21/2008)
While the 126 was a stripped down economy car for Fiat, after they sold the tooling to that unnamed ex-Eastern Bloc country, the car got taken down another few notches. Talk about BASIC transportation.
Frank 2:45AM (5/22/2008)
@ SPG
"It would be a chance to get some of their bottom of the price heap cars off the Fiat logo too."
Good point.
Ben K. 8:49PM (5/24/2008)
Maybe GM's failed acquisition of Fiat would have paid off after all! GM wasted alot of resources in that failed venture. Trade Hummer for Fiat, that sounds like a good deal considering Fiat builds small high mileage vehicles, something GM doesn't do very profitably. If ownly GM had a crystal ball.
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