China Car Times

When Nanjing Fiat first went into operation together in 1999, their cars were selling quite well. Although the models they offered were not terribly exciting, they did offer value for money with a reasonable options package. The models, Fiat Palio, Fiat Palio Weekend (Wagon version), and the Fiat Siena (sedan) were new and exciting when first launched, but their competitors, both foreign and domestic soon caught up with Fiat, and easily surpassed them.

Fiat entered into partnership with NAC in 1999, and sold over 24,000 cars in the first year of production, a sales number that is not at all bad for a company with previously no presance in China. Fiat introduced the Perla into China in 2006, with the hope of boosting Fiats yearly sales figures to the 40,000 marker. The Perla did not reach expectations, as the 2006 yearly sales were just over 37,000 over the combined Fiat range, although it was a year on year sales improvement of over 37%.

Fiat eventually broke off its joint venture with Nanjing Automobile for lack of sales, figure pointing from both sides blamed each other for the JV breakdown. Fiat said that Nanjing were taking away the brightest of Nanjing to work on the MG projects, Nanjing said that Fiat werent giving out any new models, and it was their own fault for falling sales.  Fiat has been shopping around in China since, and has signed deals with various automakers in the PRC. Zotye was on the receiving end of a deal to receive the rights to the Fiat Multipla, as well as various Lancia models, Chery were targetted to build the Alfra Range, and Guangzhou Autos were targetted recently for a technological exchange.

Fiats top man, Sergio Marchionne, has said that he wants to raise Fiats annual sales in China to 300,000 vehicles per year by 2010. Considering that in 2008, Fiat has only sold a handfull of vehicles, probably the last of the lines from the Nanjing Fiat JV, Fiat-China now has a massive task on its hand. But can they do it? The estimate from China Car Times is an optimistic one, Fiat can do it, but they need to bring the excitement of their Euro models into the PRC, otherwise the 300,000 cars per year figure is nothing but fantasy.

China has long been an automotive penal colony for Western car manufacturers, any model that was past its sell by date in Euroland ended up in production in China, although many models were embraced by the Chinese (Like the Santana, and the Jetta) other models were cast out like lepers, the Pegeuot 504 being one example. For Fiat to gain such a turn around by 2010, they need to introduce their full range of autos into China, with the same specification packages that are offered to European customers. Once full production is up and running in China, the Fiat range may not cost as much as the Euro range, but products specs should be left alone.

Fiats commitment to the Chinese market is commendable, although perhaps their re-entry into the Chinese market is more about offsetting sluggish Euro sales with a boost from the Chinese side. Hopefully with a true range of cars, rather than the ‘developing market’ cars that they were offering earlier on this decade, Fiat can truly suceed in China. By the time that domestic production of the recently introduced Fiat import line up, many of the original Fiat buyers may well be in the market for another Fiat, could brand loyalty still be big for Fiat after an absense from the market?

Fiat have announced their new prices for their imported models that they will officially launch tonight at 7:30pm, the pricing of the models that they have is reasonable for imported models:

• Fiat Bravo: 200,380rmb for standard, sports model is 210,900rmb
• Fiat Linea: 170,100rmb for basic, Luxury 180,600rmb
• Fiat Grande Punto: 140,880rmb

In addition to announcing prices, Fiat have given each of the models above a Chinese name

• Fiat Bravo: 博悦
• Fiat Linea: 领雅

The Grande Punto is yet to be given a name, that name is expected to be given at a later date, but early indications are that it will be named 鹏拓.

Fiat are coming back into China since their Nanjing-Fiat JV disintergrated over poor sales performance, with both parties blaming each other for the break down in partnership. Fiat are now reportedly approaching Guangzhou Auto group with regards to starting production of new Fiat models for China, Fiat previously expressed that the imported models are only a short term plan, until they get domestic Chinese production up and running. Fiat have previously set up joint ventureships with Chery to produce the Alfa Romeo brand in China, but are currently lacking production facilities for their Fiat brands.

Although talks between Guangzhou and Fiat are in early stages, it seems that Fiat and Guangzhou have unofficially decided to enter into partnership together. Guangzhou lacks the sales capacity of northern automotive giants such as SAIC, and FAW, it does have an exceptional skill - making massive profits. Fiat wont be able to produce cars on the Honda lines in Guangzhou factories just yet, but Guangzhou is building a new factory which should be finished by 2009.

We really do wish Fiat all the best in China, they brought some awful ‘developing market‘ cars to China, which were quite dull compared to what we know Fiat can produce for Euro markets. Fiat now plans to import several of its motors to China, but they will be rather expensive:

Fiat Group, which has auto brands like Fiat, Lancia, Alpha Romeo and Maserati, is mulling over setting up a new joint auto venture in China and launching domestically manufactured vehicles in a big way, the Shanghai Securities News reported today.

“Fiat will launch domestically-made vehicles in the future, importing complete vehicles is not a long-term plan after all,” said Jack Cheng, vice president and chief procurement officer at Fiat Group China.

“We have finished localization authentication and commodity inspection procedures,” Cheng pointed out.

“China is Fiat’s important target market, and Fiat will establish a foothold there,” said Paolo Arpellino, chief representative officer of Fiat Group Automobiles’ Chinese operations, adding that the automaker will introduce more models to China and also realize mass production.

Fiat last December pulled out of its ailing passenger car joint venture with Nanjing Automobile. It transferred its 50 percent stake in the joint venture to Nanjing Automobile. Earlier in 2007, Fiat formed a tie-up with Chery, another Chinese brand.

From China Daily.

The new Chery Fiat tie up is getting under its own steam right now, and plans for the Fiat Linea have been leaked to the internet.

The Fiat Linea seems to be roughly on par with Cherys A5 model, in terms of sizing and engine capacity.

Its good to see Fiat getting off on the right foot again in China, their previous line up was a little ’stuffy’ and sales began to reflect the dull line up, despite NAC Fiat giving them a makeover, Fiat sales continued to plummet. The good news is, Fiat and Chery are planning to put the sexier Fiat range into production, we cant wait for the Fiat Punto to hit the roads of the PRC!