R/€ = 13.71
R/$ = 10.96
Au 1198.85 $/oz
Pt 1229.00 $/oz
Aug 02, 2002
Local pick-up vehicle assembly consideredBack
Africa|Components|Concrete|Design|Fiat|Fiat Auto SA|Fiat Group|General Motors|Montanari|Motors|Nissan|Testing|Africa|Argentina|Brazil|China|Egypt|Morocco|Poland|South Africa|Turkey|Automotive|Automotive Group|Manufacturing|Motors|Product|Products|Well-priced Car|Alberto Montanari|Motors|Alfa Romeo 147|Alfa Romeo 156|Fiat Palio|Fiat Seicento|Motors|Operations|Palio|Siena|Strada|Uno
© Reuse this Italian automotive group Fiat is considering the possibility of assembling the Strada pick-up vehicle in South Africa, which would add to the assembly-line of its Uno, Palio, Siena and Weekend vehicles that are already produced in this country.
The local production of vehicles is complemented by the importation of the range of Alfa Romeos and the Fiat Seicento.
The five-door Alfa Romeo 147 was launched in the South African market on August 1 this year.
The move by Italian manufacturer Fiat Auto to introduce the sister of its popular and well-established three-door counterpart was the result of the automotive group's perception that the nature of the local market is similar to the European market, in which Alfa Romeo has a strong following.
The brand's local success will be supplemented in October this year when the company will release the latest Alfa Romeo 156 model into the South African market.
"We are emphasising the growth of the Alfa Romeo range because it will appeal to the South African driver and has the potential to satisfy this market," Fiat Auto SA MD Alberto Montanari remarks confidently.
Complementing Alfa Romeo is the Fiat 178 range, the design that forms the basis of the Fiat Palio, Siena and Weekend passenger vehicles. While the introduction of a new range of the 178 is predicted to materialise in a few years time, the cars will continue to be modified and upgraded as specified by the Fiat Group's international directives.
An estimated 800 000 of these passenger vehicles are sold worldwide each year and, comparatively, Fiat's total sales locally are dwarfed by this figure as the present sales figures for its product range span only 6% of South Africa's market, resulting in the effective sale of some 12 000 vehicles a year to the local market.
Montanari asserts that the Fiat brand, from the point of view of the consumer, is a well-priced car that has a solid reputation based on the concrete quality of the product. Diversifying its existing business is an area into which the firm is investigating as it hopes to unveil its Brazilian-manufactured Strada pick-up vehicle in South Africa after completing feasibility studies, which should be concluded by the end of November.
The Strada product has gained popularity among Brazilians since its introduction about four years ago.
Montanari notes that, while the market for this particular type of product is competitive, its nature is appealing and the South African market is the global benchmark in this niche facet of the automotive industry.
Moreover, the pioneer testing of the product took place in South Africa. In addition to its manufacturing facility, which is operated by Nissan, Fiat's local operations add a crucial dimension to the group's local initiatives.
Supplementing this is the Magneti Marelli component-manufacturing plant in Germiston, on the East Rand.
From this source, the exportation of Fiat's internally-used exhaust components is effected, thus its local manufacturing hub caters for about 25% of the total parts supply to its global operations for catalytic converters. Of the leather interiors used in Fiat's global manufacturing operations for the Alfa Romeo brand, over 50% of the product is sourced from its South African operation.
While the group's local activities are augmented by the importation of completely-manufactured products, exports of locally-manufactured vehicles would not be effective as the company's operative manufacturing hubs worldwide serve the international market adequately through the Fiat group's thorough considerations of the aspects of production and supply.
Because Fiat is export-orientated, the cost of transportation and taxes for operating in other countries is among the factors taken into account by the international company, Montanari explains. It is imperative that the cost-to-benefit ratio be considered by the Fiat group before it can begin production for export. At present, the manufacturing centre for left-hand drives in the 178 range, including the Palio and Strada products is run in Brazil, Poland, Turkey, Morocco, Egypt, China and Argentina.
The cross-shareholding between the Fiat group and General Motors (GM) creates another dimension to the company's need and is pivotal to the emphasis it places on the efficiency, expense and quality of its manufacturing process and final product.
For two years, the companies have maintained the status, with GM holding 20% of Fiat Auto and Fiat group controlling 6% of GM's worldwide operations.
Edited by: candice haase© Reuse this Comment Guidelines (150 word limit)
Other Automotive News
Updated 3 hours ago A Spoor & Fisher partner on Wednesday called on the Department of Trade and Industry (DTI) to finalise its proposed policy for Intellectual Property (IP). The policy, which had not been drafted in consultation with IP law experts, was published in September 2013,...
Updated 3 hours ago Auditor-General Kimi Makwetu has called on all government leaders to play a crucial role in ensuring that government departments and entities improve their audit outcomes. He has raised concerns over irregular expenditure, non-compliance with legislation, auditees...
Updated 3 hours ago The Somalia Stock Exchange expects seven companies in the telecoms, financial services and transport sectors to list their shares when the bourse is set up in 2015, its founder said. Somalia's economy is slowly recovering from more than two decades of conflict,...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.