Fiat Auto will launch twenty new models, two new engines, safeguard its Italian factories, and invest almost ten billion euros in R&D, said CEO Sergio Marchionne's in a new business plan revealed yesterday.

Marchionne presented his new business plan - which details future new model launches and the locations for teir production - to government officials and unions, at the offices of the Prime Minister, yesterday morning. Eagerly awaited within the Italian auto industry, it created a few surprises - including the announcement of a new 'city' car to be built in Poland - and there were sighs of relief from the unions as no Italian plants will be earmarked for closure. Marchionne is busy stepping down a path of reversing years of decline and underinvestment in Fiat, and the unions - for their part - were impressed. "There is a totally different climate now," commented the head of the metalwokers union' ULIM, Giovanni Contento, said. "This is obviously a transition phase because there are still temporary layoffs but now we're talking about working factories at a hundred percent capacity in the future."

Twenty new models - divided up between Fiat, Lancia, Alfa Romeo and LCV - will be launched in the period of the business plan (2005-2008), with twenty three facelifts also scheduled.

TEN BILLION EURO R&D INVESTMENT

9.6 billion euros will be invested in Fiat Auto by the end of 2008, 3.6 billion euros of this in the area of research and development.

The overall investment plan - of almost ten billion euros - will kick off with 2,150 billion euros being spent this year, followed by 2,500 billion euros in 2006, with similar amounts of 2,450 billion euros being pumped in during 2007, and then 2008. The Research and Development chunk of these amount will see 830 million euros spent this year, 960 million euros in 2006, while 900, and 980 million euros will be sunk into Fiat Auto during 2007 and 2008 respectively. Out of these sums, 150 million euros will be spent in the next three years on new painting systems.

Marchionne's plan also revealed that the Fiat Group - as a whole - will invest 17,700 billion euros by the end of 2008, with 7,470 spent on Research and Development.
 

ALL OF FIAT'S FACTORIES GUARANTEED A FUTURE ROLE

The giant Mirafiori plant in Turin - which has been under threat - was given a firm future as the new Grande Punto will be assembled there (in addition to Melfi) from January 2006, while a second as yet unidentified model (although it is likely to be the new Multipla MPV) will be built there from 2008. As well as Mirafiori retaining existing Multpla assembly, it will as continue to produce 'high end' vehicles - currently the Alfa 166 and Lancia Thesis.

Melfi was confirmed for the Grande Punto long-term, while Cassino will continue to build the Croma and Stilo, with the latter's replacement next year also earmarked for this plant. Termini Imerese will build the Lancia's Ypsilon model from the autumn, while Sevel will assemble the next-generation Ducato panel van range. Tychy in Poland will be expanded, as it will continue with the Panda and Seicento models, which will be joined by the all-new 'city' car (codenamed 500) in 2007. Alfa Romeo's Pomigliano factory will build the new Alfa 159 and 159 Sportwagon, while 147 and GT production will also continue at the Naples factory.

Production capacity in Fiat's Italian factories will be reduced slightly by 2008. This year Fiat expect to build 1,430,000 vehicles at the six main plants, with this reducing slightly to 1,365,000 per year by 2008. This equates to a drop of 280 cars per day.

NEW TECHNOLOGY ON THE HORIZON

A new petrol 1.4-litre 16v turbo engine is being developed by Fiat Powertrain Technologies (FPT) which will be built at Termoli from 2007. The same year will also see the arrival of a new 4-cylinder, 1.6-litre diesel unit, scheduled to be built at the Pratola Serra factory. FPT will also develop their own 6-speed transmission (codename M40) for use in light commercial vehicles - which will replace the existing PSA-sourced componentry.

Multiair technology (with electronic valve actuation to optimise fuel consumption) - currently under development - will arrive in production in 2007, while a new low environmental impact 'small' engine - either with 2 or 3 cylinders - is now under development, with an arrival date of 2010 being targeted.

Fiat - as the European market leader in CNG (Natural Gas) propulsion - will widen its scope even further. A 1.2 FIRE engine on the Panda with a rating of 105g/km (35 pct less than at present) will be available next year, while the new 1.4-litre 16v turbo engine - currently being developed by FTP - will also have CNG capability.