Fiat Auto South Africa has secured yet another new export contract this year. The deal, which has a potential value of R250 million, further strengthens the Italian automaker’s position as a major component exporter. Another positive spin-off is that it allows Fiat Auto South Africa to be more competitive in the marketplace thanks to the extra export credits that are earned.

Cape-based supplier, Arvin Meritor, has been awarded the contract to supply catalytic converter components (‘pre-cats’ with metallic substrate) for the very latest brace of models from the Fiat and Alfa Romeo stables, namely the Fiat Croma, the all-new Fiat Punto (not as yet released) and the freshly launched Alfa Romeo 159.

The first phase of the programme, which will commence immediately, will see 100,000 of these components being shipped annually to Arvin Meritor’s mother plant located in Germany for sub-assembly, before being dispatched to various plants in Italy.
 

At this stage the ‘pre-cats’ are used in diesel derivatives only, however, the possibility exists to widen the range of catalytic converter components to include petrol units as well. 

Together with the heat shield export deal announced a few days ago, this latest contract ensures that Fiat Auto SA becomes an even more important link in the parts’ supply chain for new and forthcoming Fiat and Alfa Romeo models. From a local perspective, it confirms the active role the company is playing in supporting the development of South Africa’s burgeoning motor industry.