Inviato 3 Dicembre 200520 anni fa 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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