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Speculated since the end of last year, the closure of Fiat's India operations is expected to take place much earlier than planned. According to the local press, the planned release for the next two years was anticipated and should actually occur this year, with no forecast of return. This rush is directly related to FCA's unsuccessful attempt to claim that Fiat is a truly competitive brand in the country. For comparison purposes, the sales of the only two models offered in this country (Punto e Linea) have barely reached 100 units in the last 12 months – figures that definitely make it impossible to continue operating.
Judged wrong by many experts, the strategy The adoption focused only on the platform of the compact Punto, just when the market wanted SUVs and crossovers. The brand even tried to circumvent the situation by launching specific and visually differentiated versions, such as the Urban Cross, Avventura and Abarth configurations, but the practical effects were virtually nil. The same goes for the Linea sedan, currently sold in a single version, but at unattractive prices, because it exceeds 4 meters in length and ends up paying additional taxes.
Beyond In addition, Fiat is struggling to tighten local antipollution rules, which will impose new emissions standards starting in 2020. As a result, the brand will no longer be the same. 39, one of the country's leading suppliers of diesel engines, concluding contracts with companies such as Suzuki and Tata. Opting for a renewal of the range of engines is not financially viable and investing in the launch of new models is also an exit already excluded. This would require at least $ 600 million in early investments and there would be no guarantee of a return.
With the departure of Fiat, the idea of the FCA is to focus all efforts on the Jeep, high-performance animator and record sales record mainly thanks to Compbad.
Source: Autocar India
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