Rising demand for no-frills vehicles globally has set the Italian marque thinking the slowing European economy has seen a rise in demand for cost-effective utilitarian cars.
This phenomenon is forcing automobile companies to consider joining the low-cost car bandwagon. Recently, FIAT CEO Sergio Marchionne was quoted as saying that even the Italian car manufacturer was thinking of launching a low-cost brand similar to Renault’s Dacia or Nisan’s Datsun. If the new FIAT brand does come into existence, then these cars will have to be manufactured outside Europe to keep the production cost as low as possible while ensuring reasonable profits.
As a brand, FIAT is gradually positioning itself as an upscale brand and would concentrate on two nearpremium model families, which could carve a place for the new low-cost car marque.
Over the years brands like the Dacia have proved that low-cost does not necessarily mean low-profit and, at the same time, the small price fits the current international scenario perfectly. FIAT hope to replicate this with their new car brand.
