Fiat has made plans to launch a new line of low-cost cars in western Europe.
Two of the three models are reported to have been developed by Fiat and its Brazilian subsidiary. They had originally been scheduled to replace Fiat’s ageing Palio ‘world car’ and the Uno supermini, which is still made in modified form in Brazil.
Fiat has decided to restyle the cars for western European markets and launch them by 2010 under a new brand. They would be aimed at budget-conscious buyers at the tail end of the global recession.
Fiat could also launch a re-worked version of the Seicento city car in late 2011, sources within the industry have reported.
It will be notably light and is likely to be powered by a new super-frugal, two-cylinder engine.
The car will probably be aimed at the growing market for ultra-compact city cars, but will be much cheaper than either a Smart or Toyota IQ.
The company wants to become one of the main players in the European market for low-cost cars and is keen to launch a second brand name alongside Fiat.
Fiat thinks it can tap the same new market targeted by Renault with the Logan family. Analysts believe that increasingly stringent pollution legislation – some of which will control entry to European city centres – will force drivers who had previously bought secondhand cars into the budget new car market.
There’s no concrete news on prices at this early stage, but the new Seicento could be priced as low as £5500.
The three models are expected to be built in Fiat plants in either Poland, Serbia or Italy.
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Re: Fiat plans low cost cars
It's ironic that the picture of the Fiat attached to this article looks like a modern take of the Ford Ka.
Re: Fiat plans low cost cars
Quite rightMontgomery Logan
Here where I live in France they are quite literally everywhere as are almost countless thousands of old Renault 4’s, 21’s, Pug 205’s, 405’s etc. etc. and the same thing goes for other countries in Europe.
As you drive down the road, just ask yourself how many of the people you see driving M6’s and their like actually own them.Re: Fiat plans low cost cars
The Logan has been a great success for Renault even before the recession. Nobody knows how to make small cars like Fiat- in the last few years they've massively increased their market share in Europe. The Brits can keep their old blinkers on(as we see in a lot of the posts her) but the fact is that the British car industry is dead while the Italians are doing very nicely all things considered.