Fiat mulls low-cost brand, Marchionne says
February 4, 2013
by Luca Ciferri
TURIN -- Fiat is considering launching a low-cost sub-brand to rival Renault's Dacia, CEO Sergio Marchionne said. If approved, cars for the brand would be built outside of Europe to reduce manufacturing costs.
"We are wondering if there is space for a low-cost brand such as Dacia in the Fiat world," Marchionne said on Sunday in an interview at the Carignano theater in Turin.
Fiat has plenty of spare capacity at its Italian plants but Marchionne said the automaker could not make a profit building a car in its home market that would sell in Europe for 7,450 euros ($10,100). He said Fiat is currently analyzing its manufacturing capacity outside of Europe to see if a low-cost brand is viable.
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