http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.10Change: -0.08
R/$ = 10.74Change: -0.06
Au 1266.18 $/ozChange: 1.31
Pt 1410.50 $/ozChange: 1.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 02, 2002

Local pick-up vehicle assembly considered

Back
Africa|Components|Concrete|Fiat|Fiat Auto SA|Fiat Group|General Motors|Montanari|Motors|Nissan|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|Palio|Siena|Strada|Uno
Africa|Components|Concrete|Motors||Africa||Automotive|Motors|Products||Motors|Motors|
africa-company|components|concrete|fiat|fiat-auto-sa|fiat-group|general-motors|montanari|motors-company|nissan|africa|argentina|brazil|china|egypt|morocco|poland|south-africa|turkey|automotive|automotive-group|manufacturing|motors-industry-term|product|products|wellpriced-car|alberto-montanari|motors-person|alfa-romeo-147|alfa-romeo-156|fiat-palio|fiat-seicento|motors|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 Industry News
TONY SMALLWOOD New technology is ultimately heading towards creating communication between the connected car and the “smart city”
As vehicles become increasingly technologically advanced, the future of the automotive industry is shifting towards the ‘connected car’ that can communicate with external sources, such as the vehicle manufacturer, says mobile network service provider Vodacom...
TWIN ENGINE The new Volvo XC90 T8 version offers the features of a plug-in electric car, hybrid car and high-performance car
Swedish vehicle manufacturer Volvo Car Group’s new XC90 sports utility vehicle (SUV) will offer an unrivalled combination of power and efficiency with a dual engine, when the CX90 is revealed later this year.
TOYOTA SOUTH AFRICA Toyota South Africa was recognised as Energy Company of the Year in November 2013
The growth of the automotive industry, in South Africa and worldwide, is being influenced by the ways in which vehicle manufactures are creating ways of using energy efficiently, according to government initiative the National Cleaner Production Centre of South...
More
 
 
Latest News
Despite various challenges related to the extraction of shale oil and gas, as countries grow accustomed to the idea, the use of shale as a form of energy will be more widely pursued, international oil and gas market analyst Michael Lynch said on Tuesday. Speaking at...
A consortium led by two Kenyan firms won a government tender to build a 1 000-MW, coal-fired power plant, company officials said on Tuesday, part of moves to satisfy rising demand for energy in East Africa's biggest economy. Kenya suffers from regular blackouts due...
TNPA CEO Tau Morwe
The announcement of the successful bidder for the construction of Durban’s long-awaited passenger cruise terminal was imminent, Transnet National Ports Authority (TNPA) CEO Tau Morwe told delegates at the African Ports Evolution Conference in Durban on Tuesday. ...
More
 
 
Recent Research Reports
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...
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks