Fiat working on a new budget car brand

Sergio Marchionne confirms low-cost Fiats are being discussed.

Fiat could launch a budget brand in the mould of Dacia as its existing cars move further upmarket. Sergio Marchionne, boss of Fiat, confirmed in an interview over the weekend that the decision was being mulled over following the success of the Romanian firm.

According to Marchionne, talk of a back-to-basics Fiat product has circulated for many years, but concerns had arisen around the profitability of such a project. Dacia has now proved low cost needn't mean low-profit (estimates suggest Dacia has an operating margin of nine percent), and the future of such a car is being considered much more seriously.

The 500 and Panda ranges would continue as part of Fiat's mainstream offerings, but with a near-premium billing to differentiate them from the cheaper model. Evidence of this can already be witnessed in the upcoming 500L and 500XL.

A separate brand name, like Renault's Dacia and Nissan's Datsun, would also be introduced to the utilitarian Fiat to further mark it out from other products. Names considered thus far include Innocenti, the Italian firm bought by Fiat in 1990 and best known for the Bertone-styled Mini of 1974. Other suggestions have included those that reflect the basic nature of the concept, such as ABC or 123.

Any Fiat sub-brand cars would be built outside of Europe to ensure the retail price target of 7,500 Euros (Rs 5.38 lakh) can be met. Non-European production capacity is now being analysed by Marchionne and the Fiat management as to its suitability for the project.

Fiat would not only be targeting emerging markets such as India and China with a new budget brand, but also many European countries. The ongoing financial turmoil has increased the appeal of “crisis cars” such as those offered by Dacia, according to reports in Automotive News Europe.

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Localised Punto Abarth coming this year

Fiat could launch local version of Abarth Grande Punto priced at Rs 8-9 lakh.

Fiat plans to launch its performance brand Abarth here in 2013. Unlike the Mini Cooper S, the company plans to make the Abarth here more affordable and price a locally configured and produced Grande Punto version at around Rs 8-9 lakh. 

The Grande Punto is currently available with a 66bhp petrol variant, a 75bhp diesel variant and an 89bhp diesel edition. For Abarth, the company is most likely to use the existing 1.4-litre T-jet motor and pump up the power output to 165bhp, which should improve performance considerably. Fiat could make other changes for better handling of the car, more suitable to Indian conditions. The carmaker is likely to start with stiffening the chassis and carry on with using stiffer spring and sportier dampers, which would improve grip. Thicker anti-roll bars are expected to improve handling, while some extra stopping power is likely to be added with upgraded brakes. The car could also be the only four-door Abarth version of the Grande Punto as currently, there are no two-door versions on sale here.

 

The cars will most likely be sold out of 'Abarth Studios' within existing Fiat dealers, but Fiat hasn't ruled out the possibility of having exclusive Abarth dealers either.

By launching Abarth, Fiat plans to use car enthusiasts to help pump the brand up.

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Fiat 500 Abarth review

A quick blast around Ranjangaon shows us exactly why Fiat should bring the brilliant Abarth 500 to India.

It’s 9 o’clock in the morning and it’s already collar-wetting hot. My day started about four hours ago, so I’m feeling a bit washed out and in real need of a strong cuppa.

That’s till this little bit of wickedness blares up to the forecourt. Coffee forgotten, grogginess washed away, heat ignored, smile enhanced.

The Abarth 500 glints under a glaring Indian sun. The first clue of this car’s sporting intent comes from the 205/40 ZR17 Pirelli PZero Neros. The Lamborghini Diablo and the Ferrari F40 used PZeros. The Ferrari 599GTB and the Porsche 911 use PZero rubber.

The next clue comes from the bulging chin. It’s bulging because behind it is the air-to-air intercooler. It feeds the turbocharger with cool air.

You can do this all day with the Abarth 500. It looks so delicious, you want to walk around it, picking out that diffuser at the rear, the twin tailpipes, that deep-set chin and those Abarth ‘Scorpion’ badges plastered around the car. What you won’t find is a Fiat badge.

It’s a sign. A sign to tell you that this isn’t a regular Fiat. It’s a 500 with a 1.4-litre, 16-valve, 136bhp turbo-petrol. It’s a 500 that weighs 1,035 kilos. It’s a 500 that almost matches the power to weight ratio of a BMW 325i. There’s a Sport mode which lifts the maximum torque peak from 19kgm to 21kgm and makes power delivery a little more peaky too. Let’s do some driving.

Founder Carlo Abarth was a bit of a nut. He’d stuff big motors into small cars. Whether they fit or not was another matter, but some ran with their engine lids propped open to keep them cool. So, to say I have expectations of this new Abarth 500 is understating things a bit.

I’m too excited to dwell on the red-on-black stitching on the seats, too excited to feel the fantastic cabin quality and too absorbed in twisting the key to glance at the boost gauge and the shift light. The sound from the twin pipes is a bit disappointing to be honest. It’s not as  deep or as loud as the car’s looks suggest. Anyway, Sport mode engaged, clutch in, first gear and off.

3000rpm is where it’s at. It’s where the turbo wakes up. It’s where you feel that push in the small of your back. It’s where you start smiling. Shift light, clutch in, grab second. More of the same. Shift light, clutch in, shift to third. I’m already at 120kph when the first bend appears. Back off a bit, take the turn and realise how quickly we went around that corner. It’s deceptive, this car. The tremendous grip from those wide tyres, the absolute lack of body roll and its big-car feel lull you into thinking you aren’t doing anything heroic, when you actually are.

Should you get carried away by the car’s seemingly endless grip, the Abarth has disc brakes all around and a very clever Torque Transfer Control system (TTC). It works like an electronic limited slip differential. The TTC system allocates power to the front wheel with more grip, and brakes the other one to kill wheelspin, without interrupting the engine’s power delivery. This last bit is important. It means that you won’t feel the system interfering when you’re having fun. It means you can throw the car at bends with relative abandon, knowing the electronics will sort things out. Within reason, of course.

Grouses? The steering wheel. It’s too big and it’s too artificial. The Sport mode adds weight to the wheel, but it still misses out on feel.

Fiat should bring this car to India.

Fact File

Engine

Type	4-cyls in-line, 1468cc, turbo-petrol
Power	136bhp at 5500rpm
Torque	21.01kgm at 3000rpm*

Transmission

Gearbox

5-speed manual

Dimensions

Length	3657mm
Width	1627mm
Height	1485mm
Wheel base	2300mm

Chassis & Body

Weight

1035kg

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Jeep's aggressive India plans

Fiat and Chrysler will launch 2 Jeep models in India next year and may follow up with another two.

Fiat has announced that Chrysler will officially enter India next year with the launch of their iconic off-roader brand Jeep. 

Fiat shouldn't have problems marketing the brand in India -- it is well known thanks to its tie-up with Mahindra. Jeep sold as many as 18,000 vehicles annually when it was present here earlier.

 

When it is launched, Jeep will bring two products to India and both will be brand-defining and introduced via the CBU-route. Chrysler is expected to launch these two models in the second half of 2013.

 

The first of the two will be the Jeep Wrangler. Successor to the famous World War II Jeep also known as Willys CJ (Civilian Jeep), the first Wrangler debuted in 1987. What we will get here is the latest generation Wrangler (code; JK). Like the CJ, it uses front and rear live-axles. The current-generation is also available in a long wheelbase, five-door version known as the Wrangler Unlimited.

 

Powered by a 2.8-litre common-rail diesel engine that’s good for 197bhp, it will no doubt be the fastest off-roader in the East.

 

Another Jeep model that’ll hit our shores is the Grand Cherokee. Codenamed WK2, this fourth-gen Grand Cherokee is powered by a 3.0-litre common-rail diesel that makes 237bhp and is a proper luxury SUV. Based on the Mercedes Benz M-class, it is thoroughly modern and it promises to offer superb off-road ability with plush, comfortable interiors.  

 

There are two more models in the pipeline for Jeep in India. The first of these two would be a B-segment SUV that could share underpinnings with the upcoming Fiat SUV and the second model will be a C-segment offering that could be based on the Jeep Compass – currently the smallest model in the Jeep Global lineup.

 

Chrysler has already set up an R&D centre in Chennai that houses about 1,000 employees and is the third-largest Chrysler R&D facility worldwide. 

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Fiat’s new model onslaught

Fiat to introduce five new cars over the next four to five years; all-new B-segment compact utility vehicle to debut in India by mid-2014.

Fiat has bold plans for the Indian market and plans to take things to a higher gear. The Italian company plans to introduce five new cars over the next four to five years. Its independent distribution network will also get a much-needed shot in the arm and swell to 120 dealerships by 2013.

Fiat’s brand image re-structuring strategy is part of the company’s drive to appeal more to enthusiastic drivers. Its key mantra through this entire re-jig will be to have a greater focus on sporty design and the use of sophisticated technology.

Kicking off the new model onslaught will be an updated Linea saloon and Grande Punto hatchback in 2013. The two cars already received a facelift earlier this year, and the update next year will include cosmetic changes to both with revised front and rear styling, new alloy wheel designs and a thorough re-working of the interiors. This will be followed by the debut of a new Linea in 2014, which, more importantly, will get a new 1.6-litre Multijet diesel engine and a 1.4-litre turbo-petrol. The facelifted Linea, however, will continue to be sold alongside the new Linea and re-badged as the Linea Classic. Incidentally, Ford currently employs a similar strategy with its Fiesta saloon in India. The new Fiesta is sold alongside the previous-gen Fiesta, but under the ‘Classic’ moniker. There will also be a new Grande Punto, which will be launched in India in 2014. The hatchback will be powered by a 1.2-litre petrol and a 1.3-litre diesel engine.

Lastly, an all-new B-segment compact utility vehicle shared with the Fiat-owned Chrysler group is also on the cards. This all-new platform will essentially replace the architecture used under the Grande Punto hatch, and will be engineered for sale in both Europe and the US, with it debuting in India by mid-2014. This compact utility vehicle will be powered by a 1.4-litre petrol engine and a 1.3-litre Multijet diesel.

Currently, Fiat has 11 platforms that form the underpinning of all its cars sold globally. However, in an attempt to conform to a stricter budget, the company plans on more than halving that amount to five platforms.

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Abarth coming to India next year

Fiat to bring its performance brand Abarth to India next year. Special "Abarth Studios" will be built within existing Fiat dealers.

Fiat plans to launch its performance brand Abarth here in 2013. Abarth is to Fiat what AMG is to Mercedes Benz. Carlo Abarth started his long association with Fiat in 1952, and the Fiat later bought over the performance brand in 1971. Abarth is known for stuffing big engines into small cars to make them go faster, although the new cars are more subdued and more practical. 

The cars will most likely be sold out of 'Abarth Studios' within existing Fiat dealers, but Fiat hasn't ruled out the possibility of having exclusive Abarth dealers either.

Initial offerings are likely to consist of the Grande Punto Evo with the possibility of the 500 Abarth as well. Fiat is also likely to be working on a diesel version for India.

The Grande Punto Evo comes with a turbo-charged, 1.4-litre 165bhp engine mated to a six-speed manual. With its max torque of 25.5kgm, it'll get to 100kph in 8.2 seconds and go on to a top-speed of 213kph. Even more entertaining is its handling which Abarth tweaks via a special sport setup and stiffer anti-roll bars. It will compete with the likes of the Mini Cooper S, but Fiat promises to price it more realistically than the Mini.

By launching Abarth, Fiat plans to use car enthusiasts to help pump the brand up.

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