Fiat Targets Selling 100,000 New "Idea" Units In 04

FLORENCE, Italy October 14, 2003; Dow Jones reported that Italian automaker Fiat SpA Chief Executive Giuseppe Morchio said Tuesday the company hopes to sell 100,000 of its new " Idea" station wagons annually starting from 2004.

The car is a key component in Fiat's plan to return its core carmaking unit to operating profit in 2005.

The car hits Italian dealerships in early- to mid-November.

"We aim to sell 100,000 per year," Morchio said, adding that the figure was " very conservative." He was speaking prior to the official presentation of the new model.

The Fiat Idea will start at EUR13,000, said Morchio, depending on options including a diesel engine, a technology Fiat has pioneered in small engines.

The Idea follows hot on the heels of the debut last month of the new Panda, a legendary name in the economy car category where Fiat has long excelled.

Fiat hopes to sell 70,000 of the new Pandas this year and 200,000 next year, Gianni Coda, head of the business unit for the Fiat Auto brand has said.

The company also hopes to sell around 200,000 of the re-styled Puntos, another small car, next year.

The Idea will face competition from the Opel Meriva, the Peugeot Sesame and the Renault Clio. Ford Motor Co , which is trying to boost its share of the Italian market to 10% from the current 9.2%, is also about to roll out a car similar to the Idea".

Fiat hopes to sell 50% of the new models outside of Italy, Morchio said.

The early orders for the new Panda are "more than satisfactory in that regard (in terms of overseas sales)" he said.

Morchio repeated that he plans for Fiat to reach operating break even as a group in 2004. Regarding Fiat Auto he reiterated his target of a operating break-even in 2005. The company is currently in the red, and has been forced to sell off assets to pay down debt.