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Thursday, December 1st, 2005

Fiat Auto is still very much on borrowed time after its GM

windfall, but the PSA-like strategy of selective

collaborations with other companies seems to be advancing

now. After the recently announced tie-up with Ford on

small cars, there?s fruit this week from Fiat?s

collaboration with Suzuki in Hungary in the shape of a

small SUV that both companies will market in Europe next

year.

The Fiat model is called Sedici and Suzuki?s is called

the SX4.

It looks as if Suzuki will be grabbing the lion?s share

of the vehicle?s output with Fiat conscious of not wanting

to cannibalise its existing small 4x4 product, the Panda

4x4. The Sedici can be positioned a little above that

where manufacturers are increasingly looking to offer

niche ?soft-roader? 4x4 versions of cars such as the VW

Golf and Ford Focus. Yes, those supermarket car parks can

be treacherous at times.

The nice thing, though, about Fiat working with Suzuki on

a jointly developed vehicle marketed by both is that

geographical market overlap for the two brands is

relatively small. Joint development and production keeps

cost down, so an already healthy margin is protected by

the vehicle being niche volume in character and not

subject to head-to-head competition from its sibling.

According to Italian auto trade association ANFIA?s data,

Suzuki has sold 23,600 new passenger cars in Italy in the

first ten months of this year (just over 1% market share).

The Fiat brand sold 391,000 units in the same period (just

over 20% market share). Fiat will be taking some 20,000 of

the Hungarian plant?s 60,000 units annual output and a

hefty 12,000-unit chunk of Fiat?s allocation will be

destined for Italy. No, Fiat?s Italian dealers won?t have

to worry too much about Suzuki, which I suspect will be

mainly focused on meeting demand in local central European

markets.

The Panda 4x4, by the way, is a super little product for

the outlay and a lot of fun off-road.

ITALY/UK [updated 13:25GMT]: First fruits of Fiat-Suzuki

small SUV venture appear

http://www.just-auto.com/nd.asp?art=50182

Fiat feeling upbeat in Bologna (and if Fiat can?t strut

there, where can it?):

BOLOGNA SHOW: Fiat managers have good news to tell

http://www.just-auto.com/nd.asp?art=50191

Until next time...

Dave Leggett

Managing Editor

www.just-auto.com

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