23.03.2002  FIAT PALIO REACHES CHINA

- The World Car project has now reached China, the Palio will be built and marketed in China in a joint venture with the Yuejin Motor Group, the first models due to roll off the producion line shortly after Easter.

overview
the World Car Project
the Fiat Group in China
the Fiat Palio
see the Palio

In the first quarter of 2002, Nanjing Fiat, the 50-50 joint venture set up by the Fiat Group and the Yuejin Motor Group, begins to market and sell the Fiat Palio in China. It is an important new step in the fruitful collaboration that has linked the two companies for many years in the fields of commercial vehicles (Iveco) and components (Teksid). The launch of the Palio today opens up new horizons in what experts consider a rapidly expanding car market. Suffice it to say that China's entry into the WTO and the 10th five-year plan approved by the Chinese government envisage a significant increase in sales in the next 3-4 years, from today's 700,000 units to over 1.2 million cars.

The Fiat Palio now enters this market, the first step in a long-term development project. Its presence on the Chinese market represents a strategic initiative for the Group, borne out by the investments undertaken so far. And we cannot overlook the fact that the products built by Fiat in Nanking will become a benchmark for the world and it will be the local suppliers who benefit most. In other words, it is a great opportunity for the country where competitiveness and technology are growing rapidly. And the social transformation underway seems to be equally rapid. The Fiat Palio addresses the many young Chinese families who will buy it as their first car, the realisation of their dreams, and a clear sign of an improvement in their daily lives. But the model is also destined for single customers, lovers of beauty and Italian design, who are interested in the equipment and running costs. Customers, in both cases, who want the best and will not accept compromise. And to satisfy them, Fiat Auto decided a long time ago to work with the best Chinese distribution experts, so as to guarantee impeccable service.

The '178 Project', which produced the Palio, was begun when Fiat Auto decided to develop a 'world' car to meet the company's need for greater manufacturing capacity in emerging countries such as South America, Africa, Centre and East Europe, and Asia.

Different markets, with different cultures and needs, which are difficult to meet with a single model. As a result, it was decided to develop not one car but a modular platform with several bodywork types. Different models developed from a single matrix, which adopted the most advanced quality standards to ensure that the models would be competitive on every market in terms of styling, safety, technology, price and reliability.

And so the Fiat Palio was born, the Fiat Group's first 'world car'. It was presented in April 1996 at Ouro Preto (Brazil), and the forefather of this family of cars was gradually joined by the other models (the Siena, Palio Weekend and Strada) all with an international spirit, which in six years have decreed the great worldwide success of the '178 project'. This is borne out by the fact that today the four models are marketed in forty countries, produced in nine plants, distributed in four continents and that over two million units have been sold.

The sales volumes and market share are therefore worthy of note, rewarding the globalisation strategy that Fiat Auto has pursued in recent years, in which the Palio represents the first step of a vast programme addressing a number of countries where motorisation is expanding fast. And now the first member of the 178 family reaches China, sustained by the market success that has enabled the Palio, the 2-box model of the World Car, to reach total sales of 1.3 million units the world over in six years.

The 178 family also makes the Fiat range extremely versatile, able to exploit all sales opportunities. In some countries only a single model is produced and marketed, while all versions are available in others. In other words a differentiated response from a single project, that reflects the needs and characteristics of each market. Nor can we forget that this worldwide initiative has given rise to a vast number of agreements with the main international suppliers, and the commitment to stimulate the exchange of components and to encourage the growth of local industry.

At this point it is clear that such a broad, complex project could not be implemented in a conventional way. This is confirmed by the fact that Fiat's first 'world car' was also developed on a global scale, through a process that marked a new departure in the company's history. A multinational team of experts from different countries, defined the features of the model, bearing in mind the specific demands of each of the markets in which the Palio would be sold. What is more, the 60 major components suppliers to the Palio were involved in the development of the product as 'co-designers'. They guaranteed strictly identical components, built in all parts of the world with the same materials, the same manufacturing processes, the same technologies and the same quality.

This strategy made it possible to cut development time for the model, but above all to guarantee that the manufacturing standards, and therefore the quality of the Palio - and now of the Siena, Palio Weekend and Strada - are always the same and the highest possible, wherever the car is built and whatever the labour culture and mentality of the country in which it is manufactured.

Joint development also made it possible to harmonise the technological and manufacturing processes of the models in the 178 family rapidly throughout the world, a key factor for the achievement of a series of savings that guarantee that the end product has a competitive cost. To achieve this result, the specific expertise of each Fiat plant in the world was evaluated, and production of parts and components for the cars was assigned to one plant or another according to the specific skills of each one.

The Fiat Group operates in the People's Republic of China through 7 representative offices, 9 joint ventures and 5 wholly-owned enterprises.

The industrial presence in China of sectors of the Fiat Group extends from Fiat Auto (cars) to Iveco (commercial vehicles and buses), CNH - Case New Holland (agricultural tractors and equipment), Magneti Marelli (components), Teksid (foundries) and Comau (automation for the automotive industry).

The Fiat International Representative Office in Beijing represents all the Fiat Group companies in China. In 2001, the aggregate revenues of its joint ventures and wholly-owned companies in China amounted to more than $400 million. The workforce exceeds 10,000. Total investments already undertaken or planned in China by Fiat Group subsidiaries and their partners amount to over $1 billion.

History:

Fiat was established in Turin, Italy, in 1899. A few years after its foundation, the company started to export cars to China. Industrial activities were begun in China in 1986 alongside marketing enterprises. Iveco, the industrial and commercial vehicles manufacturer, signed a contract with China's Yuejin Group covering the transfer of technology transfer and technical services related to production of the Daily light commercial vehicle in China. In 1996, Naveco, a 50-50 joint-venture company, was set up. A few months later, Iveco and Yuejin Group founded a second 50-50 joint-venture, Haveco, to produce gearboxes. In the mid 1990s, the Fiat Group's industrial presence in China expanded further. Magneti Marelli and Teksid started operations in the fields of automotive components and foundries respectively. Fiat Auto and CNH-Case New Holland launched ventures in the areas of cars and agricultural tractors and equipment respectively.

Fiat Group sectors operating in China:

Fiat Auto SPA

Nanjing Fiat is a joint venture between Fiat Auto of Italy and the Yuejin Motor Group. Its total assets amount to 2.5 billion RMB, with each partner accounting for 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.

 To prepare for the birth of the Palio in Fiat's Chinese plant, the joint venture has purchased important equipment from all over the world to assure its quality. There are currently 4 large combined workshops with ancillary power and support systems. The Engine plant and the Gearbox plant have 10 and 24 automatic production lines imported from abroad respectively. In the Assembly plant, there are 2 handspike and suspended hinged assembly lines with 248 whole-car workstations, including a visual adjustment system, a rain-effect test track and an inspection line that meets the most advanced international standards. All the key equipment was imported from abroad. In the Bodywork and Welding plant, there is a pressing line made up of a series of twin-feed 2000-tonne presses and four series of single-feed 1000-tonne mechanical presses for large sheet metal parts. This line is the biggest of its type in China and most of the dies are designed and built by Fuji of Japan. On the welding line, there are 422 imported standard welding machines, and 7 bodywork and components assembly lines. The general welding lines and main equipment were imported from South Korea. The painting plant adopts the most advanced techniques, designed and manufactured by Haden (U.K.). More than 30 foreign technicians have worked for the joint venture, and co-operated actively with their Chinese colleagues in the field of key technologies and line management, linking the activities of the plant with those of Fiat's global facilities.

Iveco

In 1996, Iveco and the Yuejin Group founded the Nanjing Iveco company, a 50-50 joint-venture for the production and marketing of the DAILY light commercial vehicle.

In July 1996, Haveco Automotive Transmission Co. Ltd, a 50-50 joint-venture to manufacture gearboxes, was set up by Iveco and Yuejin.

In May 2001, Iveco and the Changzhou Bus Company founded a 50-50 joint venture to manufacture and sell buses.

CNH - Case New Holland

In 1999, New Holland and a subsidiary of the Heilongjiang State Farm established a joint venture, Harbin-New Holland Beidahuang Tractors Co. Ltd., to produce agricultural tractors.

CNH and the Shanghai Tractors & Internal Combustion Engines Company (a SAIC Group subsidiary) signed an agreement which covers the development and manufacture of small tractors, combines, and forage harvesting equipment.

Case has also established a Chinese joint venture, Case Machinery Co. Ltd (Shanghai), in the Waigaoqiao Free Trade Zone of Shanghai, to import and market agricultural equipment.

TEKSID Company

Teksid, the metallurgical products sector of the Fiat Group, operates in China through a number of joint ventures.

The Nanjing Teksid Iron Foundry and Hua Dong Teksid Automotive Foundry are active in the field of cast iron, while the Nanjing Teksid Aluminium Foundry produces cast aluminium components for the automotive industry.

MAGNETI MARELLI Company

Magneti Marelli, the automotive components sector of the Fiat Group, is present in China with the following wholly-owned enterprises:

the Magneti Marelli Guangzhou Motor Vehicle Instruments Company, which produces instruments, sensors and electronic modules for motor vehicles.
the Magneti Marelli Automobile Spare Parts Company, producing throttle bodies.
the Magneti Marelli Shanghai Powertrain Company, which produces engine control systems and power devices.

COMAU

Comau, the Fiat Group automation and production systems sector, furnishes major automotive manufacturers in China with its advanced products.

FiatAvio

FiatAvio, the Fiat Group's aviation and space Sector, is actively involved in the maintenance of civil aircraft engines in China.

Fiat Palio is not merely a new model, but also the first model of a new generation of cars to be built in China.

In fact it is the first new compact hatchback that offers features that until now were only offered by higher segment cars, such as safety, comfort and high equipment levels.

The Fiat Palio represents the best synthesis of the values that have won the Fiat brand renown all over the world:

Unique Style and design
Driveability
Low fuel consumption
Low running costs

And, above all, high quality that means quality components, accurate assembly and product reliability.

The Fiat Palio is a successful model all over the world: in just four years, more than 2 million customers in 40 different markets - including Germany, Italy, France, Spain, Brazil, Argentina, Turkey and India - have purchased one of the many versions of the Palio, which is manufactured in nine countries and exported to another 31.

The Palio to be manufactured in China is the last generation of the series. It was originally launched on the Brazilian market and has won the Car of the Year award. It will be launched in Europe in May.

Styling and interior

The project by Giorgio Giugiaro, named car designer of the century, reveals typically Italian styling, modernity and an exclusive personality.

The design reflects the designer's intention of creating a car that could adapt to different cultures and environments, and would be appreciated by customers from different countries. In a word, it is a real world citizen.

Fluid curves and a sloping windscreen make for a comfortable interior. The bumpers are solid and reassuring.

The front part of the car looks modern, stable and spacious. The light clusters have transparent covers and the non-abrasive halogen headlights have multiple reflectors.

The interiors blend harmoniously with the exterior styling and ensure category-beating comfort, space, ergonomics and safety.

Nothing has been left to chance in the passenger compartment: colours, material textures (the range-topping version features elegant leather upholstery), visual and tactile impressions and space have been carefully chosen. The interior design focuses on the rational use of space in a good combination of ergonomics and practicality. The space around the front and rear seats is perfectly exploited. The luggage compartment is also of a generous size.

Safety

The Fiat Palio was responsible for introducing new safety standards that had previously not been adopted on cars of its segment, because it is built to stringent international safety legislation.

The Palio is the benchmark in China for customers seeking a car that offers the best, state-of-the-art devices to prevent accidents (active safety) and to minimise their consequences (passive safety).

Passive safety

Airbags. The car is fitted with the newest generation airbag, with a 'smokeless' mechanism. The driver's 45 litre bag offers greater protection. The passenger airbag can be deactivated when the seat beside the driver is unoccupied. This prevents the airbag from deploying unnecessarily if the car crashes. To deactivate the airbag, simply insert the ignition key into a lock near the handbrake lever and turn.

Programmed crumple-zones. The front and rear parts of the car have been designed to crumple gradually during impact and thus absorb kinetic energy that would otherwise be transmitted to the passenger compartment.

Survival cell. The passenger compartment, on the other hand, has been greatly reinforced. In effect it is a survival cell that safeguards the occupants against harm.

Side impact bars. New side impact bars in the doors are secured to a reinforced central column and bolster the car against side impact.

Steering. The steering wheel has also been designed to absorb impact energy and the steering column is designed to crumple. Both devices are built to ensure they do not harm the driver if the car crashes.

Seat-belts with load limiter. In addition to a pretensioner, the seat-belts also come with a device that limits the pressure exerted on passengers' chests. The limiter also increases the belt's damping efficiency.

Fire Prevention System, FPS. This consists of several components including an all-important inertia switch that shuts off the fuel flow in a collision. Interior materials with low flame propagation properties also limit potential fire damage.

Performance and control = active safety

Performance and control are the result of numerous devices and technologies, including effective, stable brakes, acceleration, and control of the vehicle on all types of road.

The suspension of the Fiat Palio gives the car great stability and excellent handling to ensure that the driver has full control of the car at all times, reducing bumps, nose levels and vibration.

Braking system with cross-over circuit: if one branch fails, the other ensures system efficiency.

ABS + EBD (Electronic Brake effort Distribution). During emergency stops, the system prevents the brakes from locking and allows more accurate correction of the braking pressure on the rear axle. This means that braking force is more effectively distributed and stopping distances are reduced under all load conditions.

High torsional rigidity increases the sturdiness of the car body, ensuring greater stability.

Comfort = preventive safety

To guarantee the highest level of passenger comfort, all the components of a car need to be designed to create an interior environment that enhances driving enjoyment and control of the car, enabling the driver to maintain his concentration even on long journeys.

The various aspects of comfort of the interior environment influence preventive safety.

For the Fiat Palio, this includes the climate system, the position of the controls, the comfort of the environment, quiet running (low noise level of the running wheels, the efficiency of the suspension system, friction material, wind noise, abnormal sound of the engine and toothed gears, gear vibration, gearbox vibration and the level of such noise).

Climate control system

In the design of Fiat Palio, the climate control system is the main factor of preventive safety.

Its aim is to achieve the best range of air conditions (temperature 20-25C°, humidity 40-50%) in the passenger compartment in the shortest time.

The climate control system has been fully designed to increase airflow, lower system noise and provide efficient demisting. By improving the air flow, temperature adjustment and air distribution, the temperature inside the passenger compartment can be quickly increased or decreased.

Low noise

The interior of the Palio was designed to ensure that passengers are not disturbed by noise when travelling; they are not forced to raise their voices to make themselves heard, and can relax and listen to the radio, with the impression of being seated in a luxurious, elegant, quiet environment.

Audio system

The Palio's audio system comes in two levels depending on the model. It has an extremely clear sound and numerous functions.

The higher level incorporates a CD player, with six speakers (the 2 rear speakers have a higher frequency).

Engines

The engineering is one of the most important aspects of the new design. The engines, safety devices, suspension and even the exterior lighting system have all been designed and developed using state-of-the-art components and systems.

Fiat Palio offers a choice of two engines featuring advanced technology and outstanding efficiency, they also respect stricter emissions standards than those in force in China.

Fire 1242 cc MPI:
Power output: 60 bhp at 5000 rpm (44 kW)
Torque: 102 Nm at 2500 rpm

The price/performance ratio of this engine is excellent, its most striking characteristic is low fuel consumption. It was designed primarily for town driving, because of its low running costs.

This 1.3 Fire engine is technologically advanced and built for lightness, durability and reliability. Some new features include a plastic intake manifold, microhybrid electronic injection and lighter connecting rods. It offers great driving satisfaction and is extremely docile. The power unit is, however, chiefly remarkable for its parsimonious fuel consumption.

1461 cc MPI:
Power output: 85 bhp at 5500 rpm (62.5 kW)
Torque: 123 Nm at 4500 rpm

One of the important characters of this engine is the ideal peak torque and normal torque curve, which ensures outstanding driving performance. It is a very versatile engine, suitable for driving in or out of town, because of its excellent power delivery and flexibility.

The torque curve is particularly flat between 2500 and 4250 rpm, and incidentally the engine also delivers more than 90% of maximum torque at just 2250 rpm. This means faster reactions and extra reserves when tackling gradients and other situations requiring extra power.

Project quality

Electronic system

Fiat Palio features a wealth of advanced technology to improve comfort, durability, economy and stability, including the V.E.N.I.C.E. system (Vehicle Network with Integrated Control Electronics).

The computerised network comprises three electronic control units: the bodyshell control system, engine control system and instrumentation. The network links the three units and allows information to be exchanged between them.

One result of this technology is that cabling has been reduced by 23%, the stability of the electrical system is improved and component weight is decreased.

Moreover, the V.E.N.I.C.E system improves some functions so that the car is more comfortable, more reliable and more efficient.

These functions include: management of the exterior lighting and fuel supply, a latest-generation Fiat CODE, a timed heated rear window; and timed interior lighting.

Theft protection

Safety also means safeguarding your assets. In other words, better devices to protect against car theft and give customers greater peace of mind.

The Fiat Palio leaves the plant equipped with an efficient Fiat CODE immobiliser. This state-of-the-art device uses a rolling system to change the code each time the car is started. The device is coded in the factory together with the body computer.

Aerodynamics

The Fiat Palio has a Cd of 0.33.

Wind tunnel simulation and careful calculation have shown that this excellent coefficient and the generous interior roominess have a positive effect on two important elements:
- overall car body shape (e.g. windscreen inclination, rear profile)
- particular details of the line (e.g. door mirror, air vents).