Lancia's
underrated luxury executive flagship saloon, the Thesis, is
about to get a much deserved boost when it enters production
in China later this year.
Nanjing Fiat is
keen to jump into the luxury end of the market, which is
expected to see sales more than double this year, and
regards
the Thesis as the perfect car with which to enter this
segment of the market.
A joint venture
between Fiat and the Yuejin Motor Group, Nanjing Fiat has total assets
amounting to 2.5 billion RMB, with each firm holding 50% of the
share capital. It is located in the Industrial New Technology Park of Jiangning
District, Nanjing, with a surface area of 640,000 square metres and a covered
area of 270,000 square metres. For several years now they
have been building the Palio and Siena 'World Cars', which
after some initial production hiccups are selling extremely
well. Now they are anxious to introduce a much wider range
of models over the next few years.
The Lancia
Thesis: a perfect fit for China
The Lancia brand
has a very strong reputation throughout Asia, and its core
values of both luxury and style, are firmly embedded in the
minds of a region that is experiencing explosion in car
private car ownership. With a population that is now
demanding individuality and character, the Lancia name fits
the bill perfectly. With Sergio Marchionne only last week
announcing that a new Delta model was in the planning stage,
Nanjing Fiat are monitoring the whole situation very
closely.
The Lancia Thesis is a true masterpiece which
is sadly underrated in Europe. Its exterior first revealed
at the Geneva Salon in 2001, with its interior being
presented later that year at the Frankfurt IAA. Full
production commenced in early 2002.
Although it has struggled to make an impact in the market,
this is mainly put down mainly to a poor marketing strategy
on the part of Fiat, as the car is undoubtedly superb.
Journalists and owners alike, generally enthuse about the
Thesis, both its excellent, driver-orientated chassis, and
its luxurious interior, which is as well equipped as any of
its rivals. It exudes a real sense of class, with its
gorgeous styling, and a panache, that its somewhat dull,
German class-leading rivals completely fail to match.
Chinese luxury car market expected
to more than double this year as the 'heavyweights' arrive
In short the
Thesis is a car ripe for a market that is looking for these
values. Already the German prestige brands are fighting it
out for market share in this segment in China. The market at
present has three locally-produced luxury brands, BMW, Audi
and Nissan.
As the "battle of the bland" hots up, BMW have cut between
12 and 13 percent off the price of their 3- and 5-series
models. Last year Audi, who have had a head start in this
market, sold more that 50,000 locally-built cars, while BMW,
with their cars being built by China Brilliance Auto,
shifted just under 10,000.
The local
prestige car market suffered badly last year due to a raft
of government restrictions, as well as jacked-up import
tariffs. However although only 70,000 luxury cars were sold,
it is estimated that this year sales will more than double
to around 150,000 units. New market entrants will include
the world's biggest carmaker GM, which will build the
Cadillac CTS locally alongside the executive Buick Royaum
which it introduced last month, Toyota, who are planning to
assemble the Crown model, while Mercedes-Benz expect to
raise C- and E-Class output to more than 25,000 units this
year.
Rumour suggests
that Lancia and China Brilliance could tie-up
With rumours
recently circulating that Fiat may yet put Lancia up for
sale as they seek to raise further cash, the name of China
Brilliance Auto, a young carmaker that is actively seeking
overseas purchases to fit into its growth strategy.
Brilliance, who already build a Giugiaro-designed and
Porsche-engineered limousine which offers styling shades of
the Lancia Musa, have in recent months been discussing the
purchase of UK-based MG Rover, although any deal is believed
to still be very far from done.
Lancia's image as an upmarket, prestige brand, coupled with
a century's worth of glorious history, would make it an
ideal fit for Brilliance Auto, who this year aim to raise
their global profile with an FIA World Touring Car
Championship programme. Any deal would be expected to work
along the lines of Brilliance concentrating on building cars
for the China and the Asia region.
Lancia would
then be re-established across Europe, while a secondary
assembly division would see Chinese-built Lancias sold in
Australia, as well as the more discerning Asian markets,
Japan and Thailand. Into the strategy would come Giorgetto
Giugaro, who already on close terms with Brilliance Auto,
would undoubtedly relish the opportunity to take on a key
role in relaunching Lancia.
For Fiat meanwhile, this deal would, through the future
requirements of the Lancia brand, offer the strategic joint
venture with another car manufacturer they need so much, and
a golden opportunity to share both architecture and
componentry, as well as combined purchasing.
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