Ford and Fiat to co-develop small cars

[SpoolMan]

Its alliance with General Motors went pear-shaped earlier this year, but Fiat has now jumped into bed with Ford to jointly develop a new generation of baby cars (known by the generic name of sub-B cars).


Although the Ford and Fiat vehicles that eventuate from the partnership will share their platforms and most of their mechanicals, the two companies say each marque's offering will look and feel quite different from the other and stay true to their individual parents' brand identities.

The cars initially slated for joint development are a modern-day version of the iconic Fiat 500 -- previewed by the gorgeous Trepiuno concept at the 2004 Geneva motor show -- and a replacement for the ageing Ford Ka.

By working together, the two companies will ostensibly benefit substantially from reduced development costs and economies of scale in manufacturing and component sourcing. Ford and Fiat say the result will mean better value and improved quality for customers.

Fiat and Ford are already working jointly on the development of the new vehicles. The current Fiat Panda platform will be the basis for the development of the new cars, which will be manufactured in Fiat's existing Tychy facility in Poland, where Ford engineers will contribute to the development of their models. The vehicles will use Fiat powertrains built in Poland and Italy.

"The strategic cooperative agreement with Ford represents another milestone in our strategy that calls for targeted alliances aimed at sharing financial and industrial resources on new products and platforms," said Sergio Marchionne, CEO of Fiat Group and Fiat Auto.

"I am pleased to say that the much awaited future Fiat 500 will further enhance our brand identity as it represents both an icon in the history of our company, and of the motor industry."

Ford of Europe President and CEO John Fleming said, "We fully intend to replace the Ka with a similarly iconic model."

The new products will go on sale in the 2007-08 period. Projected annual volume will be around 240,000 units, divided evenly.

What's the relevance for Australian consumers? Well, Ateco Automotive (the local distributor for Alfa Romeo, Citroen, Maserati, Ferrari and Kia) says it plans to reintroduce Fiat cars Down Under in the latter half of 2006.

Ateco plans to launch the brand with the new Grand Punto, but it's not inconceivable that the new-age Fiat 500 will be offered here sometime after its 2007 unveiling.
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Thx to carpoint for the story.

[CAMS290]

Fiat stands for:Fix It Again Tony

[Mechan1k]

At least it's better than teaming up with Kia/Daewoo/whatever

[MethodX]

Being Italian its good to see Fiaton the recovery trail
They have a proud history

had twin cams and were racing decades before the Japanese even thought of copying.

[Redrum]

Not the first time Ford and Fiat have worked together. CTX in Geelong Ford Plant used to make clutch housings and transmission casings for Fiat. They were damn fussy about the parts, wonder if this has changed.

[ford.boy]

Great to see. This can only be good for both companies.