Just
released August sales figures see the car manufacturer's market share continue
to contract in their key home market, sales falling at almost double the
overall Italian new car market's shrinkage. A glimmer of hope however is
that the rate of decline in August is the lowest since January this year,
helped by the Italian goverment's trade-in incentive scheme that has kicked
in fully throughout August.
Fiat's sales figures in the domestic market saw it's share fall by 11.4% for the month year-on-year, cutting the auto manufacturer's market share to 30.2%, down from 32.1% a year ago.
However the 11.4% decrease was double the overall Italian new car market's fall of 5.6% year-on-year, 101,322 new cars being registered during August. This was the smallest fall for any month so far this year, giving rise to hope that Fiat can ride on the back of a pick up in demand among Italian buyers.
Overall for the first eight months of the year Fiat's sales are down a massive 20%, considerably higher than the overall market's fall of 12.1%.
Analysts expressed disappointment with the results, most expecting a fall in line with the overall market's contraction, and puzzlement at the exact reasons for Fiat's inability to shift metal.
Coinciding with the release of August data, Fiat announced a further cut in production of 13,500 units during October, and more temporary lay-offs during the final third of the year.
Much hope is being pinned on the new cheaper basic entry-level Fiat Stilo that will be introduced towards the end of the year. Analysts hope that this will kick-start sales of the sluggishly selling medium size saloon, a car that the company had been banking on to revive its fortunes, but which has been slated by industry insiders and shunned by car buyers in general. Alongside the saloon an estate version will hit the showrooms in November.
