![]() |
|
|||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
|
| FIAT IDEA | ||||||||
Good
IdeaCould the Idea be the bright spark that will re-ignite Fiat's fortunes in India? We peer into our crystal ball. Fiat has decided to revive its India operations and is examining various
strategies to pull the ailing company back from the brink. For the past
couple of years, Fiat India has lived in limbo, amid growing rumours
that it would eventually be shut down as part of a global exercise to
stem the flow of red ink on the Italian carmaker's balance sheets.
The Panda could be powered by a 1242cc engine that's not too dissimilar from the Uno's. This one produces a decent 66bhp and promises to be fuel efficient as well. But the engine that Fiat is hoping could change the fortunes for the company in India is its 1248cc Multi-jet diesel which Maruti will be producing under license from Fiat for the Swift in 2006. This means that Fiat can have it too and with Maruti having done all the hard work of localising it, this motor could be affordable as well. It's the smallest common-rail turbo-diesel engine in the world and this compact, refined unit which develops nearly 70bhp offers fantastic economy and performance. In fact, the easy availability of this fantastic motor is a strong reason for Fiat not to give up on India. Another model that clinicked favourably with Indian consumers was the Idea, Fiat's mini-MPV, which combines practicality with style and is affordable too. Just what Indians want. It is beautifully proportioned and packaged, thanks to design inputs from Giugiaro's ItalDesign and is substantially bigger than the Fusion. Based largely on the existing Punto's platform, the Idea's wheelbase has been stretched to 2508mm. More significant is the 1660mm height, which not only creates generous headroom but also allows occupants to sit in a more upright position and adds to the interior’s versatility. Long-legged passengers will find the Idea more accommodating than most Rs 6-7 lakh cars, and it is also more generous when it comes to shoulder space.
To warrant the MPV tag, the Idea's rear seats slide to balance boot capacity
and rear leg space. They also split, fold and tip, but cannot be removed.
Although the rear lights are not mounted high on the rear pillars like
in the Punto, Panda or even our own Indigo Marina, access to the boot
is unhindered The dashboard design is unusual with the instrument cluster placed in the centre, but the rest of the cabin is logically laid out and ergonomically sound. The tight turning circle means you can park in the tightest spots and you are helped by electric power steering that has decent feel and can be lightened at the touch of a ‘city’ button, just like in the Panda. Parking is made easier thanks to minimal overhangs front and rear and excellent all-round visibility. Fiat would look at the two engine options, the obvious one being the 1.25-litre Multi-jet diesel and also a 1.4- or 1.6-litre petrol. The final go-ahead to make the Idea in India will be determined by the price. Fiat has to struggle against an expensive European cost base to which the Idea was designed and developed. However, the Idea will soon be launched in Brazil and it is this Latin American version, built for a more cost-conscious region, that we can expect. Fiat is targeting a price of under Rs 6 lakh for the Idea — that’s a tall order but one that has to be met if the Idea has to succeed. ![]() Looking further into the future, Fiat is also considering the all-new Punto, based on the company's 199 platform, which will debut by the end of this year in Europe. This new platform would spawn several new models for a wide range of markets — including the replacement for the European Opel Corsa — and it is more than likely that some derivative would find its way to the sub-continent sometime. But first things first. Fiat needs to get its house in order and put in place an effective marketing structure. If it all goes to plan, a new and rejuvenated Fiat will have its first range of models rolling out by the end of 2006 or early 2007 by which time the market will have matured to accept a new car more as a product than a brand. No doubt, it will be a challenge for Fiat to bounce back in India and not many would bet on it. However, the Italian company has gone through worse times, like its very own survival, which is still at stake. SWIM OR SINK We examine various scenarios Fiat faces to survive in India.
• l Fiat Auto's CEO, Sergio Marchionne also met Ratan Tata recently and this has sparked speculation of an alliance in the offing. Tata Motors will not be inclined to invest in a company whose losses are growing by the day. At best, the two could explore the prospects of a technical tie-up (for diesel engines, perhaps) or of Tata using some capacity in Fiat's Ranjangaon facility near Pune. Fiat could also tap Tata's enviable low-cost base for engineering its own models in the future.
• l The most logical solution for a revival is the parent infusing funds into the Indian operations but this is not going to happen, sources say. India was never a part of the list of countries that featured in Fiat's first restructuring plan that was announced nearly two years ago. The company has reiterated that it will focus on Brazil, Turkey and South Africa. The fact that India is a booming small car market could prompt Fiat to rethink its investment plans. FIAT’S INDIA INNINGS l It took control of the Kurla operations in 1998 when the automotive division was spun off as a separate unit. l Fiat India Auto Ltd (FIAL), the holding company, held 51 percent in the new entity, Ind Auto. This was subsequently renamed Fiat India Ltd (FIL). l FIAL has since increased its stake to over 97 percent today with Premier holding the balance.
|
||||||||
| Source
|
||||||||
| Our Sister Sites: http://www.khichdee.com | http://lo.karloba.at | http://www.indiabike.com | http://www.cuttingchaai.com | http://www.indiacar.net | |
|
Home |
Buy New Car |
Buy Used Car |
Sell Your Car |
Car Research |
Detailed Car Reviews |
Road Tests |
Technical Specs. Standard Equipments | Owner's Feedback | Photo Gallery | Surround Videos | Insurance | Finance | Car Maintenance | Indiacar Mall Dealer Locator | Infobank | Ask An Expert | Messageboard |Two Wheelers | RTO | Cybersteering | News Archives | Site Map | Contact Us | Terms & Conditions | Bookmark this Site | Copyright © 1999-2008 Indiacar Pvt. Ltd. |