Fiat mulls tiny car, working on Nanjing ties
FRANKFURT (Reuters) - Fiat (FIA.MI) is considering a mini or micro car as one of a number of possible new models amid growing demand for vehicles that are low on cost and pollution but high on practicality.
"It is one that is on the table -- as are a number of other projects," Sergio Marchionne, chief executive of the Italian automaker, told reporters at the Frankfurt International Motor Show.
Marchionne said Fiat could bring out such a model by as early as 2009.
"We will see how we are going to play the A segment first," he said. "Give us a bit of time and we will announce something."
That segment of the market is made up of the smallest -- and cheapest -- cars on the road.
Fiat is best known for its small cars, and has had a lot of success in that segment with its Panda city car. It has been receiving a growing number of orders for the new version of its iconic Cinquecento, or 500, a compact car that came out in July.
But the road is getting crowded with these types of cars.
Daimler's (DAIGn.DE) has its Smart ForTwo and Renault its (RENA.PA) recently updated Twingo.
At the Frankfurt show, Japan's Toyota (7203.T) showed off the Endo, a micro car that is smaller than its Aygo compact.
And Volkswagen (VOWG.DE) unveiled a concept called the Up!.
When it comes to the cheapest of the cheap, Fiat, like other manufacturers, is also working on a low-cost car for emerging markets in the wake of Renault's success with the Logan.
CHINESE PARTNER
Marchionne also said he was working towards a solution to the problems he has had with Nanjing Automobile, Fiat's manufacturing partner in China.
"We are working our way towards a solution," he said. "Give us some time."
Marchionne has often expressed his unhappiness with Nanjing and has threatened to scrap the partnership. Continued...
