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ReprintsFiat's De Meo: Image also important for low-cost cars
Luca Ciferri
Automotive News Europe
June 27, 2007 13:04 CET
PRAGUE -- When Fiat launched its Palio family in 1997 it pioneered the idea of offering low-cost cars that were made for and would be produced in emerging markets. But the carmaker soon learned that the Palio would not sell itself. "A low price doesn't guarantee success. You also need a proper dealer network and a good brand image," Fiat Automobile CEO Luca De Meo told the Automotive News Europe Congress here. De Meo said the Palio family succeeds in Brazil and Turkey because the carmaker has established dealers and loyal customers in each market. He said the model line missed sales targets in China and India because of an inadequate dealer network and because customers had no knowledge of Fiat's brand values. Fiat promises it will avoid making the same mistake when it launches its new family of low-cost vehicles, known as the B-platform project, to replace the Palio beginning in 2009. Despite having a strong dealer network and an improving brand image in western Europe, De Meo is reluctant to offer the Fiat's future family of low-cost cars in western Europe. "They hurt your brand image," he said. The most successful car for emerging markets so far has been the Logan from Renault subsidiary Dacia. Renault planned to sell the car exclusively in developing markets but decided to offer the Logan in western Europe because of demand from dealers. You may e-mail Luca Ciferri at lciferri@craincom.de |
You can reach Luca Ciferri at lciferri@craincom.de.
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