20.12.2003 DIFFICULT TIMES FOR THE FIAT GROUP IN THAILAND

Alfa Romeo has been present in Thailand market for many years, but operations have never been smooth. Importers have come and gone over the years, resulting in the brand now having a limited core appeal. 

The current distributor of Alfa Romeo cars in Thailand is Thai Prestige Autosales who have introduced the 156 Selespeed, 166, GTV, and Spider, since they took over in early 1999, and picked up aftersales where the last distributor had left off with 155, 164, GTV, and Spider.

In early 2001, Fiat entered an agreement with GM Thailand who have a factory in the Eastern Rayong Province to assemble 156 Selespeed for local and export markets. Savings on import taxes and locally sourced parts targeted a 15% price reduction of the 156 Selespeed for the domestic market.

The engine and gearbox were imported fully built from Italy to reduce costs and quality risks. Other parts were also shipped in progressively assembled and final assembly took place at the GM factory. 

After the initial batch of one hundred cars was built, phase two saw parts such as batteries and tyres sourced locally, reducing costs even further. Unfortunately, despite an initial sales growth, the export to regional markets failed to meet targets and local demand peaked with the result that Fiat have halted production.

With Fiat trimming its overseas operations as the Group seeks to return to worldwide profitability, Thai operations have been rationalised. While Fiat Auto Thailand remains in business, it has been downsized to key functions and staff. New models, other than current stock of the locally assembled 156 Selespeed, will have to be imported as before, with the result that prices will be much less competitive against rivals.

Fiat itself used to import the Punto into Thailand and in the past a limited number of Lancia models were also sold. Fiat plan to introduce a new small economy car in the not too distant future, expected to be the next generation Palio, although the segment is highly competitive with Toyota and Honda dominating the market.

text & photos by Wisrute Buddhari