Fiat’s strengths and weaknesses in the global market

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When Fiat acquired Chrysler news surfaced , many Americans have to guess what kind of chips the Italian car manufacturer will come up at the negotiating table. After all, since 1983, the Fiat company would not enter the American automobile market, and it was widely believed that Fiat Auto’s performance is not reliable. Today, this reputation has already gone. In recent years, despite the quality of Fiat Auto is not really at the first-class, but it has emerged as a technology leader, particularly on the small vehicle which has a good kind of fuel economy that Chrysler need.

Before CEO Sergio Marchionne took over the company in 2004, Fiat promising inventions often died at the research centre or to sell for cash. Marchionne started to cut costs and increase productivity , at the same time investing billions of dollars to develop more clean and efficient engines and transmissions and other new technologies and release them to the market as quickly as possible. He also urged the company to design small cars which have potential to be among the world’s top level.

Compared with the three German brands in the European market, Fiat line-up is not large before adding new car models Alfa Romeo Giulia, which will release until 2014, and the new Peugeot 208 will launch at that time as well. In addition, Fiat is lack of mid-sized sedan. Opel and Peugeot Citroen shared across brands including this category.

In Asia, Fiat is friendly to Suzuki, even to terminate the cooperation with Tata Motors dealership which has kept for six years. Some analysts said:“The alliance will allow both Fiat and Suzuki to a win-win situation, so this possibility is very big.

India is the third-largest auto market in Asia. Suzuki holds 42% share of the Indian car market and is the market leader in India. Fiat and Suzuki alliance will help it expand the space in the Indian market. Suzuki also hopes to benefit from its diesel engine and Fiat’s dealer sales network in Brazil.

Currently in China , GAC launched only one product——Fiat Viaggio. Just more than 110 dealers across the country, many second and third tier cities also have no dealers. GAC Fiat said in 2013, the sales target is about 8-10 million, planing  to expand the dealer network to 200 in China, and there may be a hatchback car will release into the market in 2013. For the highly competitive Chinese market, the product line of Fiat is very weak.

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