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During the Fiat Group Investor Day held in
Turin yesterday ambitious plans for the
carmaker's rapid expansion in three key
global growth markets - China, Russia and
India - were outlined. |
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Fiat is targeting Indian increasing sales to
140,000 units per year by 2014 which will
equate to an estimated 5 percent market
share through production of three
high-volume models. |
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In Russia a global alliance has been
established with Sollers through a 50-50 JV
for production and distribution of
passengers cars and SUVs branded by Fiat and
Chrysler Group with a production capacity
targeted at 300,000 units per year. |
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Maximum plant capacity will be 330,000
vehicles per annum once the new facility is
fully up to speed which is targeted for
2014, the last year of the 5-year business
plan (which would equate to an estimated 2
percent market share). |
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During the Fiat Group Investor Day
held in Turin yesterday, ambitious plans for its rapid
expansion in three key global growth markets, China,
Russia and India, were outlined. Fiat has been a
latecomer to exploiting new high-growth markets around
the world, but with joint ventures now in place in these
three countries, Fiat believes it is in a perfect place
to catch up.
China is the world’s biggest car
market in terms of volume and year-on-year growth, and
presently Fiat is only involved in terms of a small
trickle of imported models. After almost a decade of
being involved in a joint venture with Nanjing Auto and
a catalogue of misjudgements from Fiat, earlier this
year – after spending sometime casting round for a new
partner – signed a 50-50 joint venture with Guangzhou
Automobile Group (GAC) for production of cars and
engines.
Maximum plant capacity will be 330,000 vehicles per annum once the new
facility is fully up to speed – a goal targeted for
2014, the last year of the 5-year business plan (which
would equate to an estimated two per cent market share).
Fiat plans to roll five cars out of the factory by that
time, starting with its new C-segment sedan in 2012,
which will be the first car to come off the new lines.
In 2013 it will add a second model, dubbed "C-segment Plus". Chinese
buyers are rapidly moving upscale and Fiat has
previously tried to create a more luxurious version for
China, using the Siena sedan as a base during its
abortive JV with Nanjing – although the resulting Perla
was swiftly consigned to the footnotes of Fiat history.
In 2014, Fiat also plan a D-segment sedan at the plant
(a rebadged version of the next generation Dodge
Avenger), as well as C- and D-segment SUVs developed by
Chrysler, likely to be sold as Jeeps.
In Russia, a
global alliance has been established with Sollers
through a 50-50 JV for production and distribution of
passenger cars and SUVs, branded by Fiat and Chrysler
Group. This venture has a production capacity targeted
at 300,000 units per year, with a minimum of 10 percent
of produced vehicles to be shipped to export markets.
Sales targets for 2014 will be 280,000 units, with
230,000 of these being passenger cars, adding up to an
estimated seven per cent market share.
Eight vehicles,
split between Fiat and Chrysler Group, are proposed to
be in production by 2014. First up next year will be
Jeep’s Grand Cherokee and Wrangler, which are set to go
into production next year (they are incorrectly marked
on the slides as Fiat-based vehicles; yesterday's
presentations are in fact riddled with mistakes). In
2012, Fiat’s C-segment replacement for the Bravo will be
added to the plant in hatchback format, with a C-segment
sedan coming on stream in Russia a year later.
In 2014, two
further Fiat-badged models will arrive in Russia – the
new cheap B-segment hatchback (Progetto 326), and a new
D-segment sedan (as in China, it will be a rebadged
next-generation Dodge Avenger). Finally, two SUVs on
Chrysler Group platforms are proposed for 2013
(C-segment) and 2014 (D-segment).
The third key
global growth market is India, and here Fiat is building
on the early success of a new 50/50 JV with domestic
giant Tata Motors. This alliance was established in 2007
for the production and sale of Fiat-branded vehicles, as
well as FPT engines and transmissions destined for both
the local market and for export. Current car production
and the Ranjangaon factory in Pune is comprised of the
Palio, Grande Punto and Linea for Fiat, and the Indica
and Manza for Tata, while current powertrain production
comprises of the 1.3 Multijet and Fire 1.2/1.4 and
related transmissions.The Palio
will soon be phased out of production in India, and in
its place in 2012 will come the "New Small" (Progetto
326), to keep production running at three models. The
New Small, Grande Punto and Linea will continue through
2014, with the Linea receiving a facelift in 2013. All
models will also be exported to regional markets and
further afield. Fiat is targeting Indian sales of
140,000 units per year by 2014, which will equate to an
estimated five per cent market share.
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