Fiat considers budget brand 12 | 02 | 2013

FIAT IS CONSIDERING launching a new budget brand, built outside of Europe to ensure a low retail price, along the same business model as Dacia (pictured).

A back-to-basics Fiat product has been suggested previously, but the stumbling block had always been concerns over the profitability of such a project.

But the success of Dacia has highlighted how low cost doesn't necessarily equate to low-profit, and Fiat boss Sergio Marchionne has now confirmed he is considering the move.

As the Italian manufacturer's existing cars move further upmarket, the prospect of a new budget line appears to make sense.

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It's understood that both the 500 and Panda ranges would continue as part of the Fiat line-up. They would, however, be promoted with a more premium feel to set them apart from the new budget line.

And like Renault's Dacia, Fiat bosses would launch the new budget brand under with a separate and distinctive name to set it apart from the Fiat range.

It's understood one of the names currently being considered is Innocenti. The Italian car giant bought the company, best known for the Bertone-styled Mini of 1974, in 1990.

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Jim McGill