Autoblog

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]

It's hard to imagine, but Fiat is rumored to be developing an even smaller car than the 500 and Panda. The new model would be a low-cost vehicle targeted at markets in South America, Russia, India and China.

Depending on how the Italian automaker determines a budget automobile would reflect on the company's other products, the vehicle could be marketed under the Fiat nameplate, or possibly under a different one altogether. If the company decides it will wear the Fiat badge, it could revive the Uno nameplate and effectively replace the Palio (pictured above), which currently serves as Fiat's "world car", with production in Brazil, India, Turkey, South Africa, North Korea and China, in hatchback, sedan, wagon and pickup body-styles. Fiat's close relations with Tata, makers of the Nano, could come into play, but one way or another, nobody does small cars like Fiat, so the competition had better take note.

[Source: paultan.org]