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Interview - Enrico Atanasio!!

Discussion in 'Fiat India News' started by Ravi, Aug 10, 2012.

  1. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3

    What new products can we expect from Fiat in India?

    First of all, we will continue to work on the B+ and C segments, as they represent the backbone of the Indian car market. I am absolutely convinced that the reality of this market will continue to be in these two very important segments. However, what’s also emerging as very interesting is the SUV space. So, on a priority basis, I would say that we would have to look at that space once we’ve properly covered the B+ and C segments.

    There are two parts to the SUV segment, the compact SUV segment – in which the 500X that you’ve recently shown could be a very interesting product – and the high-end SUV segment, where you have access to brands like the Jeep Grand Cherokee that you could bring in. Are either of those options?
    The possibility is there. Through the cooperation of Fiat and Chrysler, there’s a completely new line-up of products coming up – and there are products in different areas of the market that could be interesting for either brand. I’m not in a position to tell you exactly what will happen, but if we do decide to bring in a brand like Jeep, it’s because we feel that there’s room for a luxury brand in that specific segment. At the same time, as you know, there are plans in Europe to create an SUV and MPV within the Fiat brand. So, the options are there, but we still need to decide which products we are going to bring into this country.

    Going back to the B+ and C segments, since that’s what you’re going to strengthen first, we’ve seen updates to the Punto and Linea in other markets – can we expect similar updates in India as well?
    Definitely! One of the advantages of developing better coverage worldwide is that you can really address the different markets with all the options that you have. If you look at the line-up we have in Brazil, where we enjoy 22% market share, obviously we market 15 products there. Here, today, I am below 1%. So, you can do with one product. But, the reality is that we have to start developing the potential of the products that we have – this is our task. And we are in a changing environment, because today we have some dealers who are opening new sites, some others who may not remain with us, while at the same time we have new dealers who are coming to the brand. So, in this very confused environment, it is difficult to grow immediately. But, the growth will come once the network is there.

    I can tell you some incredible figures. In its first month of activity, our dedicated showroom in Hyderabad has tripled its volume, and in the fourth month it’s expected to quadruple the volume. You have real growth in this market – this is one of the unique markets in the world that is showing +20%, +15%, +10% growth. And if somebody, for any reason, sees one month that is below 10%, you start crying that the market is showing signs of weakness. I gave an interview on television recently where someone asked me, “Are you withdrawing your investment because of this trend?” And I said, “What are we talking about – this is a market this is continuously developing and is expected to continue to develop for the next 10 years.” If you see one quarter that is below 10%, then you start to get concerned. I come from Europe, and, trust me, it’s another story. So, you are in one of the best growing markets in the world. Coming to this market is not an option, it’s a must. And being a manufacturer that has an average 4.2% share of the world market, how can I accept less than 1% in one of the most important markets of the world? So, our plans are there. Obviously, you cannot snap your fingers and boost your share to 5% or 6%. You have to first build the infrastructure – that’s why we are focusing on the network and the national sales company.

    So, in the current scenario, how much of your revenue comes from powertrains (which is sales of engines to Tata and Maruti), and how much comes from passenger cars?
    From my point of view, I don’t care. It’s a JV (between Fiat and Tata). And we definitely have a very profitable business selling engines – I would be a liar if I did not say that. And, in cars we are definitely suffering. But I am not looking back, because it’s a closed chapter. At this point, we don’t need a slow evolution, we need a breakthrough – we need a jump. And that can only come if I create the basis to make it happen, only then will profitability come from both sides.

    How is the roll-out of the dealer development programme going? Has it begun in full force, or is it still being planned at this stage?
    I can give you some numbers. We announced, with Tata, at the end of April that we are going to separate our distribution network. In the first week of May, I met all the dealers at the yearly convention of Tata. They were very kind to allow me to make a presentation to the full network, and I presented the entire project to them. I also announced to them that in a few days they would be visited by our people, because I couldn’t address the entire plan to 600 people in half an hour.

    In the beginning of June, my people began to visit each dealer. And, in that month alone, we made 160 presentations to different dealers – from the existing Tata network, as well as to potential new candidates as well. So, as of now, we’re going full steam ahead. Out of these, there are already a number of candidates that were brought for evaluation during the month of June and the first ten days of July. By the way, in a few minutes I have to meet some potential dealers – so we are running.

    By the end of March next year, our objective is to open 80 exclusive dealerships. In addition, we will also include some exclusive workshops, and we will continue this programme throughout next year as well. So, by mid-next year we should have covered all the cities that we are in currently – either with a sales and after-sales outlet, or only an after-sales outlet. It’s quite a challenging process.

    And will you decide about bringing in another prospective brand (either from the Fiat or Chrysler stable) side-by-side?
    No, that will be later on. Investigations will run parallel, but, on a priority basis, we have to focus on Fiat for now.

    Source - Interview - Enrico Atanasio
    10 people like this.
  2. gurjinder

    gurjinder Staff Member Janitor

    What Seniore Atanasio needs to do is put in the 1.6 Multijet and 6 speed gearbox in the Linea and present a REAL challenge to the Vento/Verna etc. Throw in a few exclusive features and it'll be game on (kind of).
    1 person likes this.
  3. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3
    ^^ Agree, but seems they are busy with setting up the infrastructures and convincing new dealers. Its not easy, by looking into sales numbers, I am sure every business man will think multiple times to venture with Fiat.

    But alongwith this, to keep market momentum, they must launch some new products.
    3 people like this.
  4. puntosat

    puntosat Superiore

    Just the 1.6 and a 6 speed gerabox..and an exclusive FIAT delear in major cities..and see the Linea rise....

    One SA came to my home tdy..know him pretty well..he almost confirmed new LINEA would be in around Diwali..
    Last edited: Aug 10, 2012
    1 person likes this.
  5. kaps

    kaps Superiore

    If they bring in 1.6 without infrastructure, it will be a doomsday calling for Fiat. IMO, preparing the infrastructure to gain customer confidence is must before bringing in any new product.
  6. ramjn

    ramjn Staff Member Janitor

    Linea 1.3
    I dont think Fiat can do any wonder with the 1.6 MJD. There is already a failure case study in the recent time. When VTEC sells more than 3k units per month, Tjet not even 10% of the sales of City.

    1.6 mjd or 2.0 mjd, this can never challenge Vento/Verna/Rapid until Fiat earn the trust of the common mass.
    5 people like this.
  7. fiat_fan

    fiat_fan Amatore

    It can really help Fiat to take on opponents.. but still dealership networks should be able to handle these engines..
    I have also one doubt that whether 1.6 MJD might be shared with Tata as JV still continues?!! If that is the case then my hopes will be less

    ---------- Post added at 11:30 PM ---------- Previous post was at 11:25 PM ----------

    But with out new launches how can they prepare infrastructure ? They are now working on building the infrastructure.. but IMO it need some push like this..
  8. royj

    royj Esperto

    There you have the catch 22 situation. Without infrastructure you can't sell. Without sales you can't get dealers to invest and develop the infrastructure. This is what FIAT has been struggling with.
  9. linealover

    linealover Regolare

    i certainly vouch ramjn's insight.

    all our masses need
    1.car with max bang for buck(read max boot or carry more people)
    2.fuel efficient(who cares build quality)
    3.Dealer network at every nook and corner.
    4.ingress and egress (who cares drop head gorgeous,gives us djire,ritz,sunny)
    5.Tune the engine for low-end grunt(like figo,verito,99.99 percent of citizen happy with 100-110kmph max)

    Even honda city with 75bhp mjd engine would have done wonders for Honda(well,A great opportunity a near miss)
    must have got 25km/lt in city with tincan build with skinny tyre.

    nobody cares what is under the hood whether 1.6 or 1.3 ltr.

    i think maruti and hyundai were expert in harnessing indian mindset then comes toyota,nissan

    we aware road undulations can be felt in our hands through HPS of fiat's steering-feedback

    same whatever rain can be directed towards passenger in etios and liva- as feedback, you can term it as Q-class

    so i feel Enrico Atanasio must be a sensible man!steering the fiat in right direction,though materializing things will take its

    own sweet time,thats okay but he is in right track.it is certainly a sustainable development.

    Their main agenda is to wipe the term "gas guzzler" synonym to fiat is somewhat restored with new generation fiat cars.

    which is why 2012 linea is more sluggish yet 20.5km/lt in ARAI figure as oppose to 19.5km/lt earlier.

    my hearty wishes to Enrico Atanasio!!!
    Last edited: Aug 10, 2012
    3 people like this.
  10. theblack

    theblack Esperto

    Game changer for fiat would be
    1.) Great engine (whom are we kidding here)
    2.) Sales (likewise)
    4.) mass marketing (Get out there and mingle with ppl FIAT)

    ---------- Post added August 11, 2012 at 12:02 AM ---------- Previous post was August 10, 2012 at 11:59 PM ----------

    I mean look at maruthi's 'Kitna dethi hai' adds ?
    If I didn't know any better I'd be saying they are actually making a fool of themselves with such silly adds..
    If the tag line didn't end with the phrase "For country obsessed with mileage ....." , I would have seriously thought that maruthi cars are made of cheap folks who only care about mileage and nothing else..
    Go buy a bike due, cut me a break

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