Fiat planning new Dacia rival

18 Feb, 2013 12:04pm

Fiat has announced plans to launch a low-cost budget brand to rival Dacia

Fiat is considering a low-cost budget brand to compete with the likes of Renault’s Dacia.

Chief executive Sergio Marchionne said: “We are wondering if there is space for a low-cost brand such as Dacia in the Fiat world.”

The idea is gaining momentum with the Fiat board as the market for premium and budget brands grows, with sales of the cars in between flatlining.

Marchionne would push Fiat upmarket while using a sub-brand to cash in on the low-cost sector that’s booming in developing markets like South America and India.

“We need to see if there is space left below after the Fiat brand moves up,” Marchionne added. The venture could see the revival of Innocenti – a low-cost marque bought by Fiat in 1990.

According to Marchionne, the viability of a sub-brand lies in manufacturing outside Europe. While Fiat’s Italian factories have excess capacity, costs are too high to profit from a low-price model.

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Why create a separate budget brand- Isn't Fiat one already?

My thoughts exactly!

Looking at that pic above, their new budget model is going to be an early eighties throwback.

But we have VW and Skoda and Seat so there is a precedent

Just what I was thinking...

No, Fiat isn't a budget brand, it's a mainstream brand, like e.g. Renault. What Fiat is considering is a brand positioned below the mainstream brand, the way Dacia is a brand positioned below Renault.

That is a picture of an old Innocenti, the defunct brand Fiat may consider reviving as a low-cost budget brand.

Remember the Fiat Panda of the 1980's?? That's what you'll be getting and it will be horrid but cheap and easily fixable!! Name?? Alfasud - that will get the Alfa enthusiasts frothing at the mouth over their Peroni beers!!

It would make sense for Fiat right now, but it won't last long.
In just a few years, Indians and Chinese will all be aspiring to the same Fords, Peugeots and Toyotas as the rest of us.

dont forget Fiat are already a multi brand Alfa..Ferrari... Masarati ..Chrysler.. Lancia.....Abarth....a partnership with Mazda so they are just spreading their wings further
so to sell budget cars at rock bottom prices makes sense

What with the picture of an Innocenti Mini from the 70's here? That really was a lost opportunity for BL ......

No Fiat IS a budget brand (as is Renault). Most people would ALWAYS buy a mainstream brand such as Ford, Mazda, Toyota, Vauxhall (possibly) over the equivalent Fiat (or Renault) if price, specs etc were comparable.

Polski Fiat!

Fiat IS a mainstream brand. It might be relatively cheap but the Cinquecento isn't exactly a budget friendly practical car and neither was the Croma or the Sedici. Budget brands are brands like Dacia, older Skoda, Daihatsu, etc... Brands that do not build premium-feel cars. A manufacturer that builds cars co-branded with Diesel or Gucci are not budget.

Fiat don't build premium cars - they can't build big cars as they always flop with their unreliability and poor resales values, Fiat ae one-trick pony's, they can only make small cars, and over-priced gimmicky second-rate ones at that. Fiat are budget, end of.

Only if END OF actually signified the END OF anything. That they have failed with a few models when they tried isn't really the matter. That they are comparatively less reliable than some (not all, wink wink Renault) of their peers isn't the matter either. The matter is that Fiat have built premium cars in the past, they will in the future and they build premium versions of a niché car today. That's the point. Budget brands DO NOT BUILD NICHE CARS. They build cars with mass appeal with value for money. Nearly at the END OF...

The Mk I Panda was an excellent little car, designed to be cheap and chearful and practical by Giorgetto Giugiaro. It won't be Alfasud. They wouldn't want it to be associated with their demi-premium/performance brand.

Has April 1st come early this year?, this model would fold up like an errant deck chair in a 15mph collision with a garden gate. Long before it rusted around your gills. Fiat just let Dacia kill people in the caucuses.

So Fiat wants to move up market, what does that do to, the rest of the group? Abarth, Lancia, Alfa Romeo, Maserati and Ferrari, not forgetting Dodge, Jeep and Chrysler?

What would be the point of bringing back Innocenti or Autobianchi marques that were already posher than Fiat, when they were killed off. Or bringing back FSO, or Zastava/Yugo when they were the same as Fiat? Bottom rung of the ladder.

It (Fiat) should be building 3 models only (with variants based on them of), the 500, Panda and Punto. Everything larger should be wearing the Lancia or Chrysler badge.

See the Fiat Brava, lovely looking car, how many do you see about? Whether you like it or not people are snobs.

Ford spent $1 Billion on the Ford GT40 project just to humble Ferrari, for reneging on a deal, still doesn't mean people with money will buy the latest Ford Mustang.

This is more foolishness by a manufacturer that should know better.

Will this be the return of the Lada, they were cheap (old model) Fiats? No......... then maybe the return of Polski-Fiat? To be fair to Fiat most Chryslers are pretty low rent already so just cut their prices further or try the big ongoing discount route the French makers use to keep a presence in the UK market