Fiat Auto's Brazilian carmaking division has just hired 1,200 new employees as it strengthens its operations in order to increase car production next year. “Fiat is prepared to continue through 2007 another year in its rhythm of growth and most importantly, aiming for its future in a continuous search for higher levels of recognition and acceptance by the public," with those words the President of Fiat Automòveis Cledorvino Belini, defined his expectations in relation to next year.

According to Belini, 2006 has been a year which has seen very good results turned in by Fiat Automòveis, reflected not only in terms of commercial and financial achievements, but also in the evolution of the levels of quality of their product and in their customer satisfaction. Fiat has set as its target for 2007 a growth of 10 percent in production levels in the market of automobiles and light commercial vehicles, keeping up the growth achieved in 2006 and now increasing the participation of the brand in the main markets of Latin America including Mexico, Argentina, Venezuela and Chile. Based on that expectation, Fiat has made the decision to hire immediately 1,200 new workers for its unit at Betim (MG), including 300 new professionals for the engineering and design areas, meaning an increasing of its labour force up to 10,200 employees, a growth of 20 percent in its work force. The new employees hired will allow a third shift to be added to increase production from 2,200 to 2,500 vehicles a day.

PRODUCTION AND SALES

During the meeting with the press in São Paulo this month, to evaluate the results of the year and set out projections for 2007, Cledorvino Belini announced that the total sales of Fiat in the Brazilian market had grown 15.1 percent between January and November reaching, 417,700 units and giving it the leadership of the Brazilian market with 25.5 percent participation. Exports for 2006 will keep to the same volumes achieved last year, a total amount of 100,000 units, and according to the President of Fiat car production at Betim will total 560,000 units this year. Internal sales as much as production have kept levels of growth above the averages levels of the market.

Brazilian Market

Total Production

Exports

INVESTMENTS

Bellini also strengthened the expectation of keeping the same rhythm of growth in the domestic market achieved in 2006 through 2007, from 1.8 million automobiles and light commercial vehicles produced, to 2.0 million units in the next year.
 

“The Brazilian automobile industry is living through a moment of change, Brazil is now in a strong position in terms of being an important center in the global car market and able to compete against the new players for the next decade," said Bellini. To be able to keep its position in this new scenario, Fiat is implementing a vigorous R$3 billion investment plan from 2006 to 2008, with one third of this already having been invested this year. “These investments are being applied in the development of new products, new technologies to reach better quality, improving further the manufacture processes, and every action respecting the requirements of protection of the environment,” affirmed Belini.

LATIN AMERICA

Developing the strength of the Fiat brand across the Latin American markets is one of the main strategies that Fiat has intensified in recent years, and it will be kept to in 2007. The Latin American markets represents today a block of significant importance in the global new car market, with a volume of total sales around 4.2 million units. “Our strategy is to amplify Fiat's participation in Latin America," said Belini, "strengthening our position in markets where we have already an excellent presence such as Brazil, Argentina and Venezuela, and being more aggressive in other countries like Mexico. In 2006 Fiat was re-launched on that country [Mexico] and the network of dealers received attention, all actions taken with the objective of reaching an important and preeminent participation in the Mexican market, the second biggest market in Latin America, just behind Brazil," he added.

According to Belini the main objective of Fiat Automòveis is to raise its participation in the Latin American markets from around 12.7 percent now, to 15 percent by 2010. The exports of the Brazilian unit represented in 2006 approximately 18 percent of production, and about 80 percent of these vehicles were sold in Latin America, with the other 20 percent destined for countries in Europe, Africa and Middle East.

NEW MODELS

The President of Fiat Automòveis outlined a retrospective of this year, describing the new models which were launched, with new Idea Adventure being the main revelation, a car that completed the off-road light “Adventure” family, as it joined with Palio, Doblò and Strada models. Fiat also extended its range of multi-combustible cars with Doblò 1.8 Flex; and incorporated new modifications in the design of Palio family, strengthening even more its success in the market. Special series such as the Fiat 30 Anos (30 Years) and Celebration offered across the Palio and Siena ranges found widespread acceptance amongst Fiat's customers.

Two of the most important new automotive developments which were presented in 2006 were the Palio Elétrico and the Siena TetraFuel, the first one was a electric-power prototype model, showing the importance of environmental matters for Fiat Brazil, while the second one is the first production passenger car in the world to adopt an engine specially adapted for four different kinds of fuel: pure gasoline, Brazilian gasoline (which has 25 percent alcohol), alcohol and natural gas (GNV). The Siena TetraFuel has an exclusive system that allows for automatic selection of the fuel in accordance with the best performance, greatest economy, and minimising atmospheric pollution.

Furthermore, at the São Paulo Motor Show in October, Fiat Automòveis presented the FCC Adventure (Fiat Concept Car) which was considered one of the most creative and best received stars in the halls. The FCC brings two different characteristics together, that of a sports coupé with an off road design.

by Claudio Perlini