One of the most renowned companies on the globe and especially in the European market. From some days, sources pinpoint that the company which build such a large empire on the grandest stage of them all, is planning to leave.
Yes you guessed it correct, Fiat plans to exit the minicar segment its global empire on which it is built on. Strict safety and emissions regulations threatens the entire automobile industry over the European market.
The new car market will soon start to develop pocket-sized models prohibitively expensive, so the Italian firm will shift its attention to the next segment up.
“In the very near future, you will see us refocus on this higher-volume, higher-margin segment, and that will involve a move away from the minicar segment,” announced Fiat Chrysler Automobiles boss Mike Manley during a recent conference call with analysts, according to the confirmed news from the sources.
He didn’t provide a specific time frame, but industry trade journal Automotive News speculated the move will happen by 2024.
Fiat’s model entries in the segment, continue to sell relatively well in spite of their age, which led the Italian sales chart by a significant margin.
Fiat already announced the next-generation cars which (likely won’t be sold in the United States) will only be offered with an electric powertrain, but the current cars are expected to remain in production for as long as possible, the senior spokesperson told in an interview.
The next-generation models are expected to make its debut at the 2020 Geneva auto show and go on sale shortly after.
While the model will live on as an electric car, Fiat will focus on slightly bigger subcompact cars that are expected to collect a thicker profit margins, like the Renault Clio and the Volkswagen Polo, Europe’s second and third best-sellers in 2018.
The Italian firm left the segment when it deep-sixed the Punto in 2018; it’s now looking for a way back in.
The on-going tie-up with Paris-based PSA Group would give it access to the new platform found under the Peugeot 208 and the Opel Corsa.
It was developed keeping in mind the gasoline, diesel, and electric-powered drivetrains in mind. Exiting the minicar segment would represent a huge about-face for Fiat.