FIAT's new strategy + Linea confirmed

[Mpower]

Tata old Fiat! Hip models arrive : fiat, tata motors, joint venture : IBNLive.com : CNN-IBN

Mumbai: New investment, hip models and fresh positioning - that's Italian automobile giant Fiat’s turnaround strategy in India.

Fiat's alliance with Tata Motors has given the brand new lease of life in India and now it's working to position itself as a premium brand while trying to avoid conflict of interest with Tatas.

The company will be coming out with several new models like the premium Grande Punto and the Sedan Linea.

“The evolution of the demand will be certainly going in the direction of bigger, more expensive cars. I think we have to match the complimentarity (sic) of the range with the Tatas we sell in the same dealerships. Fiat will be positioned higher than Tata,” says Head, Brand Fiat, Luca De Meo.

In an exclusive interview to CNBC-TV18, De Meo confirmed Linea's launch in India and indicated it would be priced lower than its competition. That includes the likes of the Corolla.

“We will look at this comparison. We'll look in India. Because of many reasons we may want to make it more competitive,” he says.

But even as it plans premium models, Fiat will not abandon the compact car segment, in which the Palio operates.

The Linea and Grande Punto are expected late next year or early 2008 and will roll out from the Ranjangaon plant which is also the manufacturing location for the Tata-Fiat alliance.

Fiat recently got approval to invest Rs 2,000 crore in India and with this new strategy of positioning, funding, and expanding the retail network, Fiat looks scripting a success story.

[sreenivass]

Great news

A pleasure to know a good car maker is scritping a nice startegy for India. Hopefully this brings down costs of those overly priced, so called premium cars in D segment, will do a whole lot of good for our car market.

[drpullockaran]

I sincerely hope that FIAT owners will be given the opportunity of trading in their FIATS for the Linea when the time comes. I own a GTX and cannot dream of upgrading to any other car other than the LINEA. For a few months I had even thought of ordering an OPTRA with the VECTRA's 2.2 petrol engine which was neigh impossible failing which I had even contemplated buying a Hyundai Verna ( I am a sucker for torque). I thank the FIAT boffins for giving me an opportunity of owning another well built car but sincerely hope the TATA's do not muck it up. Bye and wear your seat belts.

[Mpower]

Interesting bit, FIAT after years of trying says that it has literally given up on A segment (Uno) and B seg (Palio) and will concenterate on C and D seg.

Image will still be a huge problem and unless they ditch FIAT and launch Alfa.

If they stick to petrol the FE will still be an issue. They have to take Skoda's lead and go diesel all the way.

[sreenivass]

Originally Posted by Mpower

Interesting bit, FIAT after years of trying says that it has literally given up on A segment (Uno) and B seg (Palio) and will concenterate on C and D seg.

Image will still be a huge problem and unless they ditch FIAT and launch Alfa.

If they stick to petrol the FE will still be an issue. They have to take Skoda's lead and go diesel all the way.

Well said Mpower, I believe FIAT is treading that path already. You can see that in Petra/ Palio segment. I think they actually are going beyond Skoda by fitting linea with 140/ 150 BHP stuff with great torque (if the news is right). With interiors done up a little bit I am sure Honda, Toyota, Hyundai (and Skoda not sure) will have a run for their money.

Imagine the range of cars we can get with different engine (90 BHP, 140 BHP, 150 BHP) under 8/9 Lakhs. Sounds exciting to me, boy I am dreaming already.

Lets look forward to get maximum bang for our hard earned bucks (even otherwise ).

Image is some thing they still have to work on, from what I hear Palio/ Petra owners say (being a Petra owner myself) I dont think its all that bad. Tata-Fiat alliance seems to be working already.

[fight_club]

given the opportunity of trading in their FIATS for the Linea

my plans are slightly different. The day Linea hit India i would replace it with vtec and end up having the gtx and linea. some guys can not have enough of fiat.

[v1p3r]

Originally Posted by drpullockaran

For a few months I had even thought of ordering an OPTRA with the VECTRA's 2.2 petrol engine

Is that even remotely possible?

[deepakhon]

This seems to be some good news. It is good that Fiat and Tata do not clash with their product portfolio.

[basilmabraham]

Originally Posted by deepakhon

This seems to be some good news. It is good that Fiat and Tata do not clash with their product portfolio.

True. If Fiat concentrates on the C and D segment, there would be no clash of products between Tata and Fiat, as Tata is yet to come up with a premium C or D segment car. Hope all this works out and the Indian buyers get better value for their hard earned money.
If all goes well, I would trade in my PalioD for the Linea. Hope its not gonna be along long wait...

[sreenivass]

Originally Posted by basilmabraham

True. If Fiat concentrates on the C and D segment, there would be no clash of products between Tata and Fiat, as Tata is yet to come up with a premium C or D segment car. Hope all this works out and the Indian buyers get better value for their hard earned money.
If all goes well, I would trade in my PalioD for the Linea. Hope its not gonna be along long wait...

What about Indigo or Marina ? Are they going to discontinue ?

I thought from size perspective Indigo and marina belong to C segment.

[Dark Knight]

This is great news indeed!
More power to Tata - Fiat.

More details:

DNA - Money - Tata and Fiat will roll out Linea sedan, too - Daily News & Analysis

[Joz]

Originally Posted by drpullockaran

I thank the FIAT boffins for giving me an opportunity of owning another well built car but sincerely hope the TATA's do not muck it up.

You make it sound like Fiat is doing Tata Motors a favor. Very clearly, Fiat has a better tradition of mucking up in India than Tata's.

[merve_extreme]

Fiat will continue to play in the B-segment and B+ segment,but the palio and punto will be sloted above their tata counterparts,like a slightly premium position.

that means if you want a fully loaded car you can buy a Fiat car and if value is more important then you can buy a tata,excellent strategy.IMO the cars that Fiat will roll out from now will have excellent fuel ecenomy,because that is all what india is about,not that 2kmpl difference is going to save you a million rupees.

[brraj]

Shocked, Fiat Linea with 140-150 bhp under 8-9lkhs.

This will shake the whole car industry

cheers

[tsk1979]

Fiat has done a turnaround in Europe due to Grande Punto and Linea. So they must be doing things right, finally. Hope they do the same here. It will be a big relief to all Fiat owners and a performance sedan in the mid size price range will be good competition to the assortment of mileage mules which currently dot the category from 5-10L.