Fiat Unveils New Panda, Aims To Sell 200,000 In 2004

LISBON September 2, 2003; Dow Jones reported that Fiat SpA Tuesday launched its new Panda car, as part of the company's bid to boost its market share in Europe."Fiat thinks this new model will play a major role in its strategy," Gianni Coda, who heads the Fiat Auto business unit for all Fiat and Lancia-branded cars, said at the trade fair in Lisbon, where the car is being launched.

"It's an important product for Fiat's relaunch," Coda said.

While retaining the name of a prior vehicle, the Panda is a new vehicle and not a mid-life makeover as has just been given to the Punto, a Fiat car a half step up from the Panda.

The new Panda will go on sale in most European markets in mid-September, with a diesel version ready by November. The car will be priced between EUR7,950 and EUR10,950.

New phased-out Pandas were being sold during August promotions in Italy for as little as EUR5,500.

Fiat Auto estimates that around 1.2 million cars in the subcompact category, which includes the new Panda, will be sold in Europe each year. Coda said he expects to sell 70,000 Pandas before the end of 2003, noting that he already has orders from his retail network for 30,000.

In 2004, Fiat expects to sell around 200,000 Pandas, and is targeting 220,000 unit sales per year thereafter, following the introduction of additional versions of the car.

Coda said Fiat Auto had invested EUR560 million in developing the new Panda, and around EUR40 million more on launch publicity.

Coda also said Fiat Auto had received 140,000 orders for the new Punto, and 15,000 for the small but upmarket Lancia Y vehicle, which was unveiled in June but is arriving at dealers this week.

August auto sales in Italy probably fell 5% on the year, but Fiat's market share likely improved from the 28.7% figure in July, Coda said, adding that the company aims for around 30% of the Italian market.