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Old 02-04-2013, 09:41 PM   #1 (permalink)
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Default Dacia may face a new budget rival from Fiat

http://www.autonews.com/apps/pbcs.dll/article?AID=/20130204/COPY01/302049678/fiat-mulls-low-cost-brand-marchionne-says#axzz2JwUcGxcd

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TURIN -- Fiat is considering launching a low-cost sub-brand to rival Renault's Dacia, CEO Sergio Marchionne said. If approved, cars for the brand would be built outside of Europe to reduce manufacturing costs.

"We are wondering if there is space for a low-cost brand such as Dacia in the Fiat world," Marchionne said on Sunday in an interview at the Carignano theater in Turin.

Fiat has plenty of spare capacity at its Italian plants but Marchionne said the automaker could not make a profit building a car in its home market that would sell in Europe for 7,450 euros ($10,100). He said Fiat is currently analyzing its manufacturing capacity outside of Europe to see if a low-cost brand is viable.

Back on table

Fiat has looked at a low-cost brand over the past five years but not gone ahead with such a project because executives were worried that the business plan was not profitable.

Among names considered for the brand were Innocenti, an Italian brand Fiat bought in 1990. The brand launched the Innocenti Mini in 1974, styled by Bertone and based on the underpinnings of the original Morris Mini. Other options included names where a combination of letters or numbers linked to the idea of a back-to-basics product, such as ABC or 123.

The low-cost brand project is now back on the table as Marchionne wants to move the Fiat brand more upscale, concentrating on two families of near-premium models based on the iconic 500 and Panda minicars. "We need to see if there is a space left below after the Fiat brand moves up," Marchionne said.

Other automakers are launching or considering budget brands to meet growth in the segment in emerging markets such as China and India and growing demand for "crisis cars" in austerity-hit Europe.

Nissan will sell its revived Datsun brand in Russia, India and Indonesia starting in 2014. Volkswagen CEO Martin Winterkorn said at the Detroit auto show last month that a decision on a budget car for emerging markets would be taken this year. VW is looking at a price range of between 5,000 and 10,000 euros and may build the car in China, sources said.

Despite its low retail price, Dacia is a cash cow for Renault. Morgan Stanley estimates that Dacia has an operating margin of 9 percent, which is more common for premium automakers.
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Old 05-29-2013, 09:54 AM   #2 (permalink)
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Default RE: Dacia may face a new budget rival from Fiat

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Originally Posted by Aristo
http://www.autonews.com/apps/pbcs.dll/article?AID=/20130204/COPY01/302049678/fiat-mulls-low-cost-brand-marchionne-says#axzz2JwUcGxcd

Quote:
TURIN -- Fiat is considering launching a low-cost sub-brand to rival Renault's Dacia, CEO Sergio Marchionne said. If approved, cars for the brand would be built outside of Europe to reduce manufacturing costs.

"We are wondering if there is space for a low-cost brand such as Dacia in the Fiat world," Marchionne said on Sunday in an interview at the Carignano theater in Turin.
Fiat did used to make a budget brand for third world countries up to at least about 6 years ago but can't remeber what it was called if I find out I will post it did used to be sold in Spain.
Fiat has plenty of spare capacity at its Italian plants but Marchionne said the automaker could not make a profit building a car in its home market that would sell in Europe for 7,450 euros ($10,100). He said Fiat is currently analyzing its manufacturing capacity outside of Europe to see if a low-cost brand is viable.

Back on table

Fiat has looked at a low-cost brand over the past five years but not gone ahead with such a project because executives were worried that the business plan was not profitable.

Among names considered for the brand were Innocenti, an Italian brand Fiat bought in 1990. The brand launched the Innocenti Mini in 1974, styled by Bertone and based on the underpinnings of the original Morris Mini. Other options included names where a combination of letters or numbers linked to the idea of a back-to-basics product, such as ABC or 123.

The low-cost brand project is now back on the table as Marchionne wants to move the Fiat brand more upscale, concentrating on two families of near-premium models based on the iconic 500 and Panda minicars. "We need to see if there is a space left below after the Fiat brand moves up," Marchionne said.

Other automakers are launching or considering budget brands to meet growth in the segment in emerging markets such as China and India and growing demand for "crisis cars" in austerity-hit Europe.

Nissan will sell its revived Datsun brand in Russia, India and Indonesia starting in 2014. Volkswagen CEO Martin Winterkorn said at the Detroit auto show last month that a decision on a budget car for emerging markets would be taken this year. VW is looking at a price range of between 5,000 and 10,000 euros and may build the car in China, sources said.

Despite its low retail price, Dacia is a cash cow for Renault. Morgan Stanley estimates that Dacia has an operating margin of 9 percent, which is more common for premium automakers.
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Old 10-27-2013, 06:16 PM   #3 (permalink)
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Interesting..
Which cars do you think Fiat would try to compete with from Dacia.
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Old 11-14-2013, 12:49 PM   #4 (permalink)
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I don't think that the names that Fiat is considering are very good. Innocenti sounds like innocent, which a company would only call itself it it was guilty of something. And ABC or 123 is about the most uncreative names I have ever heard. You can't name a car company after a Jackson 5 song. They better choose a better name for the company if they want people to buy these cars.
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Old 11-15-2013, 02:14 PM   #5 (permalink)
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Innocenti does sound weird, but it probably means something significant to that car or the brand. If the car is good enough people wont care too much about what its called. I wonder who greenlighted the idea of making Innocenti its name
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Old 11-18-2013, 07:50 AM   #6 (permalink)
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would it be built on the fiat 500 platform? :P
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Old 11-18-2013, 01:24 PM   #7 (permalink)
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Originally Posted by reeeno View Post
would it be built on the fiat 500 platform? :P
That would seem like a good place to start. Fiat has access to a lot of platforms with them owning Chrysler and all. Opening up another brand is always a huge undertaking though. If Fiat did choose to do this, how long do you think it would take before we see cars in showrooms. Likely many years. At least 5.
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Old 11-19-2013, 12:17 PM   #8 (permalink)
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Yea it will be some time before we see this happen. Cars take a long time to develop.
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Old 11-19-2013, 12:30 PM   #9 (permalink)
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well they could simply operate the way Dacia and Datsun operate, simply strip an existing FIAT vehicle to its bare minimums and away you go...
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Old 11-19-2013, 02:37 PM   #10 (permalink)
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being built on the fiat 500 platform will give them an advantage, less development costs and it's a platform that has been perfected.
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