06.05.2004 The Italian new car market enjoyed a surge last month with registrations up 13.3%, however Fiat, hit by strike action late in the month, saw their domestic market share fall slightly

The Italian new car market enjoyed a surge last month with registrations up 13.3% year on year. However Fiat, hit by strike action late in the month, saw their domestic market share shrink to 28.2%.

Fiat stated on Monday that a crippling strike at their Melfi plant had seen production of around 35,000 cars lost, almost 2% of total annual output. Melfi, one of the most modern and efficient of the Group's facilities also produces sheet metal components used at almost every other factory, so the strike had a 'knock on' effect, hitting production across Italy.

However with workers drifting back this week, Fiat are confident that the disruption is now over.

Their 28.2% market share last month, which equates to 58,680 vehicles registered, was only slightly down, by 0.5%, on March, but up 0.3% year on year, and market watcher's are generally satisfied that Fiat's recovery is proceeding in the right direction.

A raft of new models introduced during the second half of last year, including the Fiat Panda, Idea and facelifted Punto, as well as the exciting GT Coupe from Alfa Romeo and the 'pocket flagship' new Ypsilon from Lancia, are taking hold strongly, with each model having been well received by the market and building a strong order book.

A series of niche models now coming on stream will further contribute to the recovery. These include the Fiat Multipla MPV, which has had its controversial looks toned down, and the Alfa Romeo 156 Crosswagon, which signifies Fiat's sportscar arm's return to offering four wheel drive traction as an option.

A mild facelift and new engines for the underachieving Stilo has helped it to gain more market acceptance, and the range will expand further when a 'Crossover'-style version of the Multiwagon becomes available later this year.