Fiat will sign a new strategic alliance with another carmaker by the end of this year, CEO Sergio Marchionne announced during the launch of the brand new Grande Punto model today.

In a swish ceremony today, the new Grande Punto 'supermini' was presented to more that eight hundred journalists who have been flown in especially for the occasion. The setting was Turin's famous 'Palavela' which has recently been refurbished in time to be used as a skating venue at next year's XX Winter Olympics which will be held in the Northern Italian city. Marchionne was very upbeat about the market prospects of the new 'compact' segment contender, which is now set to replace the existing Punto - itself having sold over six million units since its launch in 1993 - stating that he believed next year's target of 360,000 Grande Punto sales will be exceeded. "Fiat is returning, strong, dynamic and with its books in order," he said.

Turning to the often asked question of new future carmaking alliances, Marchionne hinted that positive news would arrive in the next few months. "By the end of 2005 we will announce the first of Fiat's targeted alliances," he said, before swiftly squashing widespread speculation that it would be with an Eastern-based car manufacturer, adding that "the industrial alliance will not be with an Asian company."
 

Ever since Fiat and General Motors dissolved their partnership in February, Marchionne has been looking to strike new strategic partnerships in an effort to reduce costs and utilise their factory and worker overcapacity.

Fiat brand boss Luca de Meo said that the new Grande Punto will cost 'at least' 11,110 euros, but he firmly expected that the wide list of options available will push the price of the car - which has seven engine and five gearbox options - upwards.

Fiat Group Chairman Luca di Montezemolo, who also present at the new model's launch ceremony, said in an interview with La Stampa - the Agnelli controlled Italian daily newspaper - and published this morning, "With this car, which is drawing an attention that had not been seen in years, we want to say, 'Fiat is back."