Fiat moves back into the black

rahul_intlad · 21st February 2007, 21:50

A remarkable turnaround story,

In January the Fiat group, Fiat SpA, presented its best balance sheet in a decade and unveiled the stylish new Bravo model, the flagship for ambitious future growth targets. The group posted a net profit of almost ?1.2 billion in 2006 on a turnover of ?51.8 billion, an 11 per cent increase on 2005.
It is a remarkable turnaround in such a short span of time, especially as it was achieved in a relatively sluggish European auto market. Car sales for Fiat Group Automobiles in terms of value were up 17.6 per cent in 2006 against the previous year, while the growth figure for the European motor market as a whole was just 0.7 per cent over the same period.

Revenues at Ferrari (a part of the Fiat group, but not of Fiat Automobiles) jumped 12.3 per cent to almost ?1.5 billion, while Maserati’s turnover was down slightly (2.6 per cent).

The architect of the revival is chief executive officer (CEO) of the group Sergio Marchionne, who was appointed in June 2004. Marchionne grew up in Canada and has injected some much-needed North American can-do optimism into the Fiat empire. He slimmed down Fiat’s bloated management system and increased the ratio of managers brought in from outside Italy. The aim was to change Fiat’s corporate outlook to make it more focused on profit and market demands and less preoccupied with technical matters.Furthermore, Marchionne has worked to increase the number of components that can be used interchangeably across Fiat’s range of models.
Another key part of Marchionne’s strategy is the development of joint ventures with foreign partners. An example of this is the new low-cost car Fiat will make with Tata of India in India. The 30-horsepower vehicle will go on the sub-continent’s auto market next year for around $2,200, about a third of the price of the cheapest small cars on the western European market.

However, Marchionne is not resting on his laurels. Fiat intends to introduce about 40 new or restyled models by 2010 to take annual group turnover from ?51.8 billion in 2006 to ?67 billion and profits from €1.2 billion to ?2.5-2.7 billion. Leading the charge is the new Bravo model.

Source:
Fiat moves back into the black by Paul Virgo Wanted in Rome

amit · 22nd February 2007, 13:25

Their balance sheet can move into a thicker shade of black if they get more serious about fast growing auto markets like India.

rahul_intlad · 22nd February 2007, 14:22

The article has brought out the fact that the One lakh car from tata would be around 30bhp.

typeOnegative · 22nd February 2007, 17:22

Interesting. Apart from 30 bhp, it might require 30 horses to pull it too. What are they making it from? Plastic. Damn.

theMAG · 22nd February 2007, 17:48

Quote:

Originally Posted by typeOnegative

Interesting. What are they making it from? Plastic. Damn.

Quite. Fiber Reinforced Plastic (FRP) actually.

iraghava · 22nd February 2007, 18:00

Quote:

Originally Posted by typeOnegative

Interesting. Apart from 30 bhp, it might require 30 horses to pull it too. What are they making it from? Plastic. Damn.

Remember that if the First-gen Indica can sell with 40-odd bhp powering it's 1 ton+ weight, it's not going to be much of a problem for the 1L car. After all in that segment performance is not even a criteria!!

GTO · 22nd February 2007, 18:42

To add to what iraghava said, you can bet that it will be mind-numbingly fuel efficient. Happy masses, wot?

Coming back to the topic, I guess the awesome Fiat Linea will only help boost Fiat fortunes more.

extreme_torque · 22nd February 2007, 20:58

Quote:

Originally Posted by iraghava

Remember that if the First-gen Indica can sell with 40-odd bhp powering it's 1 ton+ weight, it's not going to be much of a problem for the 1L car. After all in that segment performance is not even a criteria!!

Indica never came with a 40 bhp engine as far as i know. Even the 4 speed, carb petrol made 60 odd bhp's. Correct me i am wrong.

iraghava · 22nd February 2007, 21:15

Quote:

Originally Posted by extreme_torque

Indica never came with a 40 bhp engine as far as i know. Even the 4 speed, carb petrol made 60 odd bhp's. Correct me i am wrong.

IIRC the 1st gen Diesel Indica was 40-odd Bhp.

aniguchisan · 22nd February 2007, 22:00

Quote:

Originally Posted by iraghava

IIRC the 1st gen Diesel Indica was 40-odd Bhp.

Mate, I think it was 54bhp.

iraghava · 22nd February 2007, 22:58

Quote:

Originally Posted by aniguchisan

Mate, I think it was 54bhp.

Yes you're right it was 53-54 bhp just found that out myself. But it makes perfect sense, the current Indica/Indigo NA diesel engines make about 62bhp so the 1L car which has half the engine is going to make around 30bhp!

greatDrive · 23rd February 2007, 08:59

Looks like this 1 lack car will be a city car like Rewa, You dont need more Bhp to drive down in a city like bangalore/mumbai.. top speed of 60-80 is still enough.
Rewa on road in bangalore cost 3.3 lac, so 1.25 lac car for city giving 30kmpl will definetly make sense. Poeple like me will always like to have this second car for my wife( Safer option than Kenetic & Activa atleast), it can be useful dropping and picking my Son from playschool.

typeOnegative · 23rd February 2007, 09:40

theMAG,

I was guessing the same actually. Not too happy about that prospect though. What about repairs, crash safety etc. etc.? I think even the Sipani Dolphin was made from FRP. It was easy to damage and I think plastic is a bit tough to repair.

iRaghava,

40bhp for an Indica is a close to ridiculous figure.

I always remembered it with 50+ bhp. Does anyone have the figures for the 1st gen Maruti?

GD,

How many people do you think cram into a Reva?

30 bhp. There will soon be bikes making more than that. Arrggghhhhhhh ....

21st February 2007, 21:50	#1
rahul_intlad Senior - BHPian Join Date: Aug 2006 Location: Pune Posts: 1,579 Thanked: 4 Times	Fiat moves back into the black A remarkable turnaround story, In January the Fiat group, Fiat SpA, presented its best balance sheet in a decade and unveiled the stylish new Bravo model, the flagship for ambitious future growth targets. The group posted a net profit of almost ?1.2 billion in 2006 on a turnover of ?51.8 billion, an 11 per cent increase on 2005. It is a remarkable turnaround in such a short span of time, especially as it was achieved in a relatively sluggish European auto market. Car sales for Fiat Group Automobiles in terms of value were up 17.6 per cent in 2006 against the previous year, while the growth figure for the European motor market as a whole was just 0.7 per cent over the same period. Revenues at Ferrari (a part of the Fiat group, but not of Fiat Automobiles) jumped 12.3 per cent to almost ?1.5 billion, while Maserati’s turnover was down slightly (2.6 per cent). The architect of the revival is chief executive officer (CEO) of the group Sergio Marchionne, who was appointed in June 2004. Marchionne grew up in Canada and has injected some much-needed North American can-do optimism into the Fiat empire. He slimmed down Fiat’s bloated management system and increased the ratio of managers brought in from outside Italy. The aim was to change Fiat’s corporate outlook to make it more focused on profit and market demands and less preoccupied with technical matters.Furthermore, Marchionne has worked to increase the number of components that can be used interchangeably across Fiat’s range of models. Another key part of Marchionne’s strategy is the development of joint ventures with foreign partners. An example of this is the new low-cost car Fiat will make with Tata of India in India. The 30-horsepower vehicle will go on the sub-continent’s auto market next year for around $2,200, about a third of the price of the cheapest small cars on the western European market. However, Marchionne is not resting on his laurels. Fiat intends to introduce about 40 new or restyled models by 2010 to take annual group turnover from ?51.8 billion in 2006 to ?67 billion and profits from €1.2 billion to ?2.5-2.7 billion. Leading the charge is the new Bravo model. Source: Fiat moves back into the black by Paul Virgo Wanted in Rome Last edited by rahul_intlad : 21st February 2007 at 21:53.
	() Thanks

22nd February 2007, 13:25	#2
amit Senior - BHPian Join Date: Feb 2004 Location: Mumbai Posts: 3,717 Thanked: 449 Times	Their balance sheet can move into a thicker shade of black if they get more serious about fast growing auto markets like India.
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22nd February 2007, 14:22	#3
rahul_intlad Senior - BHPian Join Date: Aug 2006 Location: Pune Posts: 1,579 Thanked: 4 Times	The article has brought out the fact that the One lakh car from tata would be around 30bhp.
	() Thanks

22nd February 2007, 17:22	#4
typeOnegative Senior - BHPian Join Date: Oct 2004 Location: Vikhroli, Mumbai, India Posts: 1,503 Thanked: 27 Times	Interesting. Apart from 30 bhp, it might require 30 horses to pull it too. What are they making it from? Plastic. Damn.
	() Thanks

22nd February 2007, 18:42	#7
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,546 Thanked: 300,788 Times View My Garage	To add to what iraghava said, you can bet that it will be mind-numbingly fuel efficient. Happy masses, wot? Coming back to the topic, I guess the awesome Fiat Linea will only help boost Fiat fortunes more.
	() Thanks

23rd February 2007, 08:59	#12
greatDrive BHPian Join Date: Apr 2005 Location: Bangalore Posts: 547 Thanked: 7 Times	Looks like this 1 lack car will be a city car like Rewa, You dont need more Bhp to drive down in a city like bangalore/mumbai.. top speed of 60-80 is still enough. Rewa on road in bangalore cost 3.3 lac, so 1.25 lac car for city giving 30kmpl will definetly make sense. Poeple like me will always like to have this second car for my wife( Safer option than Kenetic & Activa atleast), it can be useful dropping and picking my Son from playschool. Last edited by greatDrive : 23rd February 2007 at 09:04.
	() Thanks

23rd February 2007, 09:40	#13
typeOnegative Senior - BHPian Join Date: Oct 2004 Location: Vikhroli, Mumbai, India Posts: 1,503 Thanked: 27 Times	theMAG, I was guessing the same actually. Not too happy about that prospect though. What about repairs, crash safety etc. etc.? I think even the Sipani Dolphin was made from FRP. It was easy to damage and I think plastic is a bit tough to repair. iRaghava, 40bhp for an Indica is a close to ridiculous figure. I always remembered it with 50+ bhp. Does anyone have the figures for the 1st gen Maruti? GD, How many people do you think cram into a Reva? 30 bhp. There will soon be bikes making more than that. Arrggghhhhhhh ....
	() Thanks