Paint booth issues affect Palio production; Why make it in the first place?

27/06/2009 - 18:10 | ,  ,   | Shrawan Raja


News that Fiat Palio sales are sagging, is not new. But why is Fiat still persistent on selling its oldest model in India?

Minor cosmetic changes didn’t help Fiat when it had launched the upgraded Palio a couple of years back. Even the addition of 1.3 L multijet to its engine portfolio didn’t improve its prospects much (maybe it was too late?).

Fiat Palio sales has nosedived to just 388 units during Jan-Apr ’09 down 72% Y-o-Y. However the management states that problems arising from the incapable paint shop as the reasons for decline in sales. Whatever the management says, its high time Fiat brings in the new small car to achieve its sales target of two lakh cars by 2014.

Why isn't Fiat true to its Indian followers by making a India-specific model and then suit it later for the needs of other countries? A car developed in India for Indians aided by the success of the Grande Punto should be Fiat's big ticket to success and reaching sales targets. Hyundai, Tata, Suzuki, Mahindra have shown it can be done.

Source - Business Standard

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