Fiat, which has recently moved to driver’s seat at Chrysler and work out a revival plan for the US carmaker will not have any implications for the Chrysler models coming to India.

Industry sources says that, to expect this to translate into a windfall for Fiat’s local partner, Tata Motors, equally, from the viewpoint of marketing the Nano in the US through the Fiat-Chrysler network is just “wishful thinking” for the moment.

Fiat as a priority will have its hands full chalking out a product line-up strategy in Chrysler plants across North America. It is indicated that the Cinquecento (Fiat 500) will be a near-certainty, or the while other compact models from the Italian company’s stable might follow the trend. To get these products accepted in the US market, is a challenge as still US market is inclined towards larger cars and sport-utility vehicles.

Sources said that, “Fiat’s main objective is to make a mark with its own products first in North America through Chrysler”. To keep the alliance going smoothly because the battle is far from over is another challenge. The American carmaker has been thrown a lifeline but to sustain this momentum will require a lot of hard work. 

Company has not been successful in global alliances. Chrysler’s mega-merger with Daimler also didn’t work well; moreover Fiat and GM too had to work on their own after an equity crossholding deal did not quite deliver on the expected lines.

Fiat has a joint venture with Tata Motors in India to make cars at a plant near Pune. Nearly, 70,000 units annually is the target for 2010. Near 2012, the Italian company plans to make a low-cost car exclusively for the sub-continent, targeting the huge potential of the compact segment.

One thing is for sure, that Tata Motors are the trendsetter here with the Nano people’s car that is scheduled to hit the roads here next month. Two years down the line company has also made public its intention to enter the US (in addition to Europe) with the car.

Sources said that, “It will be quite a challenge to position the Nano in this market because Americans prefer to drive large, spacious cars. Further, the Tata car will have to comply with safety norms in the US. This will involve lots of hard work on the engineering front, which could translate into more time too”. The Indian company might keep its date 2011-12, therefore remains to be seen.

This effectively shows that even if the Fiat will contemplate helping out in the Nano’s marketing (with Chrysler), will have to be preceded by detailed market analysis, feasibility from the viewpoint of volumes, impact on brand positioning (with Fiat’s products) and so on. Experts aver, “Though Fiat and Tata products share showroom space in India, the equation may not always work in advanced markets where the threat of brand dilution is real”.

Fiat has incidentally planned its own low-cost car for advanced countries such as Europe and will prefer to push it aggressively in a large, profitable market like the US. This car will be dearer than Nano and will not sport a Fiat badge. Sources says that, “It will not come in cheap, for sure, because the low-cost term as understood in Europe is quite different from India

Surely, Fiat has reiterated its value with alliance with Tata Motors but the India connect is still miniscule compared to the world stage. For a decade, Fiat has had a jinxed innings here and just when it seemed as if it could even shut shop, the Tata joint venture happened and a new chapter has begun. At the end, though India is not going to be a critical growth driver for Fiat at least for the next three-five years when it is still in consolidation mode.

Best Selling Fiat Car Models:
Fiat Palio 1.1 SL Stile (Petrol)
Fiat Palio 1.1 SLE Stile (Petrol)
Fiat Palio Stile 1.1 SLX (Petrol)
Fiat Palio Stile 1.6 Stile Sport (Petrol)
Fiat 500 Lounge (Diesel)
Fiat 500 Sport (Diesel)
Fiat Linea Active 1.4 (Petrol)
Fiat Linea Dynamic Pk 1.4 (Petrol)
Fiat Linea Active 1.3 (Diesel)

Related News:
Tata Motors sings MoU with Bank of India for financing Fiat cars
Luxury car sales drop 8%
GM expanding its used car business over five-fold in India
Maruti A-star travels to Africa, Latin America

Related Books:
Classic Cars
Eckhart Cars
Car Design

Add a comment

Posted by Amrith K.A on 15 June, 2009 5:55:55 PM IST #