Fiat Ready to Make Cheap Car
Car manufacturers the world seemed to be competing to create a cheap car. After Nissan announced it would give birth again as the Datsun brand Volswagen cheap cars and cheap car announced it would give birth anyway, now turn to setting up a car with a Fiat.
Fiat CEO Sergio Marchionne said that Fiat is considering to launch a low-cost brand in Europe will be the opponent for the cheap brands Renault, Dacia. Because currently the only brand that has existed as a cheap brand VW Datsun and unborn.
Later, according to Marchionne, if the plan is approved by the directors of Fiat will build the car from a cheap brand outside Europe to reduce production costs.
"We wondered if there was room for a bargain as the Dacia brand in the world of Fiat," Marchionne said as quoted by Auto News.
Currently, Fiat could actually produce the car in Europe, especially in Italy because their manufacturers still have excess production capacity. But when it was done, the profits will be thin because of high production costs while the price of a cheap car is the range number 7450 euros or $ 97.8 million alone. That way, the production outside of Europe was the most reasonable.
Fiat, he acknowledges, is not this just recently considering making a cheap brand. As it turns out Fiat has been considered since the last five years but did not always happen because directors feared that a business plan is not a cheap car will be profitable.
However, the trend of the development of developing countries and the trend seems to have been making cheap cars Fiat tempted. Especially at this time to the next grade Fiat, Fiat 500 and Panda also can no longer be regarded as an affordable brand.
"We need to see if there is space left on the bottom after the Fiat brand going forward," Marchionne said.
There are many brands that are considered to be a cheap brand Fiat to them, one of which is Innocenti, an Italian brand Fiat purchased in 1990. These brands have launched in 1974 Innocenti Mini Bertone design based on the design made by the Morris Mini.
