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Fiat cars moving out of the mass-market in Europe to focus mainly on the Panda and the 500 range

Discussion in 'Fiat Global News' started by gazgotta, Mar 11, 2015.

  1. gazgotta

    gazgotta Amatore

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    It seems Fiat Automobiles moving out of the mass-market approach in Europe and focus mainly on the Panda and the 500 range.:cigar:

    Marchionne believes that the economic viability of investing further to retain Fiat as a mass-market brand is bleak. He has gradually condensed the portfolio of Fiat cars in Europe to focus mainly on the Panda and the 500 range.

    Instead of a full range of products characteristic of mass brands, the Italian automaker is working on a two-pronged model line-up to “do what it does best,” Fiat Chrysler CEO Sergio Marchionne told Auto News.

    Will it impact Indian Product Lineup ?:stig:

    Source Credit: IAB http://indianautosblog.com/2015/03/fiat-europe-strategy-172578
    varoon9999 and prabhjot like this.
  2. RaviHegde

    RaviHegde Regolare

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    According to the blog Fiat sales have declined in Europe too. Others are marching ahead of Fiat. What is going on with Fiat?!
  3. acechip

    acechip Superiore

    It seems Fiat India is ahead of the curve:yuck:. They have already given up on mass market brand appeal. So not to worry.
    In a way it is good for Fiat. Atleast the Indian perception is not too different from the global one. The only question is how many of the 130 plus dealers will retain their franchise.
    The monthly sales figures 600-750 is not going to change. Because that represents buyers who are genuinely convinced by the product offering, and not drawn into the usual market hype. However, the fact remains that even their current offerings are just about par for the course. To make them truly special and niche, Fiat will have to make some additional investment. Which doesnt seem to be happening quickly enough.
    bharath, prabhjot and dadasaheb like this.
  4. prabhjot

    prabhjot Esperto

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    @RaviHegde

    There has been a severe crash in car sales in Europe over the last 4-5 years. Sales are now growing decently, for Fiat and FCA as much or more than the other firms. Fiat's marketshare was allowed by Marchionne to slip (in order to lose less money in Europe during the recession then say Ford, Opel, PeugeotCitroen or Renault) deliberately, by not launching any mass market cars, eg a replacement for the Punto, the Bravo, or the Linea. They only lauched variants of the 500, and the 500L and only recently the 500X alongwith the Jeep Renegade, and each of these models did/are doing very well, as is the Panda: it all follows from Marchionne's strategy of going and staying 'premium-within-small-car-mass' in Europe and pushing Jeep, instead of having a wide-ranging model portfolio of every type of mass market car.

    @acechip +1 to your point about 'at least India syncs with Europe' in Fiat strategy. Or at least so I hope: the coming of the t-jets to the Avventura and the Evo is a pointer, but as we've/I've been discussing, hope that extends over the next 2 years to other stuff (like even a ckd-priced full line-up of the 500(L/X) series of models) under the 'Fiat' marque, and not just Jeep. They are investing and have already (with the new dealers/spares warehouse etc), question is will they stop/slow-down the Fiat branded investments, and totally invest in 'Jeep' as they already are at the Ranjangaon plant, i gather?
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  5. RaviHegde

    RaviHegde Regolare

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    Thanks @prabhjot for the information (I really did not know so much about Fiat's strategy in Europe). Yes, sometimes when the branches of a tree start drying we have to prune and discard them to keep rest of the tree healthy. Good to see a sensible person in Fiat doing it and finding success in it.
    bharath and prabhjot like this.
  6. Ravi_M

    Ravi_M Regolare

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    Indore
    Indore
    Linea 1.3
    Will it be wise if someone staying is USA considers buying pre-owned FIAT 500 from a sales agency. There is a binding on the agency to cover all problems faced during first 60 days. I haven't heard much of FIAT from my relatives in USA. I assume FIAT 500 is a good car for a beginner. Comments?
  7. prabhjot

    prabhjot Esperto

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    delhi ncr
    The fiat 500 and now even the 500L is a niche product in the US, a big-bigger-biggest car and SUV market. But its sales are certainly bigger than say Mini. It is especially popular in the biggest cities, and especially in California. I don't think there'd be any issue with getting one, but do confirm that there is a Fiat Studio/service centre near enough to where you will be (by American standards, near enough could mean as much as 35+ miles!). It sure will make for a superbly fun, and superbly fuel efficient option in the US for 1/2 people, though long American road trips are best done in a rental car?
  8. Ravi_M

    Ravi_M Regolare

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  9. prabhjot

    prabhjot Esperto

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    Autocar UK reports that FCA will launch a bigger-than-500X crossover, which will be the twin of the upcoming Jeep C-SUV (Compass replacement, bigger than Renegade, Grand Cherokee styling rather than Wrangler-looking).

    That Fiat and that Jeep will have the same platform and most components shared with the 500X and the Renegade, including engines and transmissions.

    The Jeep C-SUV is apparently certain for localized manufacture in India, for exports mainly, at Fortuner-like prices, with the 2 litre mjd, to be shared with Tata's new SUV-s.

    Which means that FCA in India will by 2017 have the ability to manufacture the 500X, the Jeep Renegade, the Jeep C-SUV and this last's Fiat-branded twin, too. Since they share platforms and most components, costing should be very competitive, esp with exports in the mix as well.

    Therefore, one feels Fiat should focus on launching these 2 crossovers say in 2017, once the 2 Jeeps are also manufactured (rather than only assembled) here, rather than chase the chimera of trying to get the Linea and Punto (even if all-new ones are developed and launched) to compete in the cut-throat, East Asian car firm-dominated b2 to c2 segments. Fiat has better prospects of profits even if no better sales numbers at D1 and D2 prices than they do in the b2-c2 ones where the Linea, Punto and Avventura currently are.

    Also, their 5 year plan mentioned a Brazil-developed B-suv (well below the 500L and 500X) for India in 2016, off a lightened Palio platform. There have been sourced and quoted reports of a Jeep version of it too, specifically for emerging markets, rather than for Europe or the US. But this newest Autocar UK report suggests that they are planning on a small, Panda 4x4/Cross replacement and its Jeep sibling for Europe too.

    One hopes both the promised Fiat B-suv and its rumoured Jeep sub-Renegade sibling are principally based and exported out of India, unlike the 500X/Renegade that will mainly be globally supplied out of Italy, Brazil and China: that is how sales numbers can be increased, too, at prices say around or below the Duster/Terrano's?!
  10. prabhjot

    prabhjot Esperto

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    asimpleson and King CM like this.

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