Fiat Chrysler Automobiles will split its Fiat brand into two distinct arms as it plots to revive the company in the competitive western European car market.
Fiat’s product planners have decided to exploit two areas in the European car market that are showing strong signs of growth: near-premium small and compact cars and high-value budget cars.
Fiat’s Luca Napolitano, who is head of the Fiat brand for Europe, the Middle East and Russia, has been quoted as saying that the two new arms are known as ‘Rational’ and ‘Emotional’.
The Emotional family covers the expanding 500 range and the upcoming Mazda MX-5-based Fiat 124 Spider. The significant addition to the 500 range will be a larger five-door hatchback model, which will be based on the same platform as the Fiat 500X crossover.
This new car is expected next year and Fiat will pitch it as a direct Mini rival that offers more space. All-wheel drive and powerful turbocharged versions are also under development.
Napolitano said Fiat’s Rational line would be “based on functionality and value for money”. The Panda (which will be replaced in 2018) will make up the entry-level models. They will be joined by a new B-segment supermini — in effect, a reborn Uno — and a new family hatchback and estate that are based on the Aegea budget saloon.
Fiat’s own internal presentation says the new Rational B-segment model will be launched next year.
There’s no news yet on what the bigger models will be called, but Grande Panda or Grande Punto are thought to be in contention.
Although Fiat will reveal more about this new line-up at the Geneva motor show next March, it’s understood that the C-segment hatch and estate will not be as cheap as Dacia models but will undercut mainstream rivals from the likes of Skoda and Hyundai-Kia.
The Aegea platform has been developed in Turkey over the past three years, mirroring Dacia’s approach of completing much of the engineering in a low-cost country, Romania in Dacia’s case.
According to an official investors’ presentation by the company, Rational Fiats will be built in just one trim level, with the choice of two engines and just four exterior colours.
This suggests that luxury upgrades such as sat-nav or a higher-quality audio system will be installed by the dealer. Showroom prices will also be fixed and Fiat may opt to retail these cars online.
Such moves look to leverage Fiat’s historic advantages of being a brand built on a reputation for characterful and highly regarded small cars such as the Uno, Brava, Punto and Panda - all of which became European Cars of the Year.
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Embarrassingly naive
Where can Fiat find an upmarket brand?
The brand would of course have to be slightly sporty and it would be handy for it to have some sort of motoring heritage with motorsport success and a smattering of a few cars with ,perhaps Ferrari engines and some spectacular show cars?
Oh, they do have such a brand. When is Lancia coming back?
If Audi can disappear as a brand for twenty years until relauched as a budget brand by Mercedes Benz in '57 and can then be perceived within forty years as some sort of Mercedes equal; and Skoda can go from being a joke to sensible luxury in fifteen years, why not?
Why not?
I wish they would make up their mind!