Fiat to invest EUR9 billion on new models in 3 years

Article by Christian A., on December 10, 2013

Fiat Group is planning to invest up to EUR9 billion ($12.3 billion) on new models as it bids to stymie its losses in Europe in three years and revive its nearly empty Italian sites, two people privy with the matter told Bloomberg. Aside from boosting its Maserati and Alfa Romeo brands with new models, the carmaker will also focus the Fiat brand on versions of the 500 and Panda minicars while scrapping the Punto subcompact.

According to Fiat brand chief executive Olivier Francois, the Panda family will be targeted towards budget-conscious customers while 500 models will be aimed at those willing to pay more to get a more premium product. "The Fiat brand has two dimensions, Panda-500, functional-aspirational, left brain-right brain," Francois told Automotive News Europe in an interview.

According to Roberto Verganti, a management professor at Milan Polytechnic, going upscale with “cool, high-margin 500 and Alfa models is the only possible strategy to continue building cars in Italy." Fiat CEO Sergio Marchionne is currently pressed to stop the Italian carmaker’s bleeding in Europe, especially that a merger between the company and US auto company Chrysler remains uncertain.

Fiat previously disclosed that it targets to develop around 20 new models for Europe by 2016, including eight Alfa Romeos. As part of its luxury focus for its home market, Fiat will introduce 500s, Jeep SUVs and a convertible version of the Alfa Romeo 4C sports car in 2014, according to Bloomberg’s sources.

Those vehicles will be built in Italy. The new Alfa Romeo Giulia sedan will also be built in Italy by 2016. The Fiat Punto, once a best-selling subcompact hatchback for Fiat, will be succeeded by a five-door version of the 500, which will be built in Poland to save costs and boost profit margins.

Topics: fiat, investment

If you liked the article, share on:

Comments

Recommended

As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 2017
We expected to see the BMW i8 Roadster at last month’s 2017 Frankfurt Motor Show, but it never made an appearance. So the question on fans’ lips now is when...
by - October 16, 2017
Jaguar has just released the first official image of its newest offering, the new Jaguar XEL. Essentially the long-wheelbase version of the Jaguar XE compact sedan, the new Jaguar XEL...
by - October 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries