Fiat off to disappointing start in China

Since its last joint venture failed in 2007, Fiat has been working hard to secure a position on the lucrative Chinese market but its efforts have largely been in vain.  

The Dodge Dart-based Viaggio sedan that was launched last September has consistently missed its sales targets and the imported Fiat 500 has failed to win the hearts of young and trendy buyers.  The Freemont and the Bravo, Fiat's two additional models, are a rare sight on Chinese roads.

The situation looks alarming on paper, but Fiat is not worried and it is proud of its accomplishments: Setting up shop in China regardless of sales figures was no small task.

"We formed the joint venture with GAC; learned to be partners with them; hired a work force; developed a car; established a network; and started production. I mean, these are tremendous achievements for the first year," explained John Burton, Guangzhou-Fiat's general manager, in an interview with Automotive News.

Fiat has not given up its goal of selling 300,000 cars a year in China and it plans on introducing a new model every year.  Its precise product plans are not known, but it has confirmed that it will launch two new variants of the Viaggio, a tall hatchback and a two-door coupe, that might be sold in Europe after their debut.  At least one of those models will make its public debut at the Guangzhou Motor Show that will open its doors from November 21st to the 23rd of this year. 

In order to give its image a much-needed boost, Fiat will avoid selling the Panda and other entry-level models because local manufacturers such as Chery and Great Wall dominate that segment of the market.  Instead, it will focus on its larger, better-finished upmarket models like the Freemont and the 500L, and it might even import Abarth-badged cars in order to counter MINI's John Cooper Works lineup.