28.01.2005 A significant feature of the announcement that Fiat plan car production operations in Iran, is that the Middle Eastern country could become a global 'hub' for the production of CNG-powered vehicles

A significant feature of the announcement that Fiat plan to begin major car production operations in Iran, is that the Middle Eastern country will become a global 'hub' for the production of alternative-fuels vehicles.

Intense attention in Italy has been focused on this major new deal over the last 48 hours, with the workforce at the giant Turinese Mirafiori factory, once again fearing that they could bear the brunt of any production switch.

Under the terms of the new agreement, Pars Industrial Development Foundation (PIDF), an Iranian private sector firm, will invest around 200 million euros in a new plant, while Fiat will provide strategic "technical and technological support".

The brand-new factory will immediately begin building the full 'World Car' range: the Palio (hatchback), Siena (sedan), Strada (pick-up), as well as, the Palio Weekend and Adventure (estates), the latter vehicle being a 'lifestyle' version of the former. An MPV will quickly join them, with speculation pointing towards this being the Ulysse, especially as Peugeot-Citroen, with whom Fiat jointly build this vehicle, are also at present expanding their operational capability in Iran.

Fiat target Iran as a 'hub' for CNG-powered vehicles

However we turn our attention here to the announcement that the Multipla and Doblo 'alternative fuels' vehicles will be built in Iran as Fiat target the country as a 'hub' for CNG vehicles. Fiat have a long standing commitment to creating cars that respect the environment, and are at the forefront of implementing this new technology into production situations. The most recent example of this strategy being the hydrogen-powered Panda, which has recently been purchased by several Swedish government departments'.

The 'Natural Power' Fiat Multipla models have lately been undergoing conversion at the Arese plant, utilising the vast spare capacity of the former Alfa Romeo facility, and Fiat have been casting around to find  permanent home for this production line.

Iran will prove to be an ideal fit for Fiat, as the Middle Eastern nation plans to make CNG vehicles a cornerstone of its long-term economic policy. As the holder of the world's second largest reserves of natural gas, behind Russia, this makes great sense for the developing country. At the same time this strategy will allow greater exports of its more valuable oil reserves to be made, and in turn, reduce Iranian dependence on this commodity.

Iran is also pushing hard in to develop new CNG-derived 'fuels' and importing in Fiat technology can only assist this race. Fiat Auto CEO Herbert Demel commented this week "Our goal is to transfer modern technology to the Iranian automobile industry."

By the end of last year there were more than 22,000 gas-powered vehicles on the Iranian roads, mostly focused around the capital, Tehran. Of these vehicles 1,200 are buses. There are now more than 40 refueling stations, with this number set to pass the 100 mark by the end of next month, and top 150 by mid-summer.
 

Fiat Multipla

"Respect for the environment, for nature and for the world in which we live every day is an unavoidable need for both car manufacturers and car buyers," say Fiat themselves

Fiat Multipla

A significant feature of the announcement that Fiat plan to begin major car production operations in Iran, is that the Middle Eastern country will become a global 'hub' for the production of alternative-fuels vehicles


As the Iranian government pursues their CNG strategy, they expects to have the capacity to refuel more than 35,000 cars and 5,500 buses per day, in just the Tehran region alone, by the end of this year.


'Natural Power' Fiat Doblo and Multipla

"Respect for the environment, for nature and for the world in which we live every day is an unavoidable need for both car manufacturers and car buyers," say Fiat themselves, which is why they are proud of their 'Natural Power' range, with petrol/natural gas dual feed.

The new ecological line features three models, that ensure the minimum environmental impact: the Fiat Punto, Multipla and Doblò Natural Power.

Methane, being totally free of toxic substances, reduces emissions of particulates, benzenes and all other aromatic hydrocarbons to zero; it also reduces carbon dioxide emissions by 25% and, as a result, also reduces the impact on the greenhouse effect. Methane also brings benefits in terms of savings: it considerably reduces maintenance costs, thanks to the almost total lack of carbon residues in the engine. Meanwhile, in several countries there exist state-funded eco-incentives for the purchase of a methane-powered vehicle.

From the point of view of the car’s performance, natural has nothing to fear from comparison with petrol because, thanks to its excellent combustion, it guarantees superb performance in all conditions of use, thus ensuring better service efficiency. In addition, with the latest protection systems, the methane fuel tank offers the same high levels of safety as a petrol tank.

Mirafiori workers see Iran deal as a threat to their future

Workers at Fiat's vast Turin car plant, are once again feeling that their future is threatened if production switches to Iran. Yesterday a delegation of around 400 marched to the nearby Lingotto centre to disrupt the high-profile European Figure Skating Championships which are taking place there this week.

Fiat Auto boss Herbert Demel has repeatedly stated that they have no plans to axe any Italian factories, and asked to comment on the Iran deal yesterday while in Davos, Switzerland, Fiat CEO Sergio Marchionne commented that "The draft licence that has been granted to PIDF is to construct to cars with Fiat brand name at its Iranian plant in Saveh and to sell them on the local market. Fiat Auto will not construct any plant in Iran. The agreement signed yesterday therefore can have only positive effects on the Italian structure of Fiat Auto, in so much as it will involve an increase of activity tied to the supply of the personnel for the assembly of the cars, and that in the initial phase the Multipla will be built in Italy."
 

Related articles
28.01.2005

Fiat have come to an agreement with the Pars Industrial Development Foundation, to manufacture and distribute an expanded new range of cars in Iran

autodelta           smart