Globalisation of markets
By Boris Sambolec
Appeared in the newspaper DELO on February 21
Q: What is your estimate of the position of the trust Fiat in Slovenia (i.e. Fiat+Alfa Romeo+Lancia)?
A: If we take into considerations some problems of Fiat in the beginning of the nineties we are now
quite satisfied with the new importing company and with the trend of re-gaining confidence of Slovene
buyers into our products. Company Avto Triglav,Fiatīs authorised consignor in Slovenia has achieved
10-% market share last year, that is quite considerable.
Q: Nonetheless, the three marks are not equally successful?
A: Right, Fiat is naturally most successful, as it has a broad palette of models with very admissible
prices for all potential buyers. This year is the year of Alfa Romeo, the reputation of which rises also
around Europe, especially with the new Alfa 156. We will support your distributor in more aggressive
marketing of Alfa Romeo products, trying to achieve approximately 2-% market share.
Q: What about Lancia, your most prestigious mark which hardly gets on in Slovenia?
A: Lancia is expected to be promoted greatly in 1999, but this year we are going to bring to you Lancia
Y. This model has its fans, but I think a good sales and post-sales service network has to be established
and more efforts must be put in marketing. I do not doubt that it will promote to the position it
deserves. Besides, in summer next year new Lancia Dedra is planned, for which we have high plans.
Q: How important is Slovenian market for you, being relatively small compared to other European
markets?
A: It is true, your market is small but not at all negligible. Considering sales of new cars per capita you
are achieving enviable numbers, and Fiat will continue paying highest attention to your market. To
confirm this statement let me tell you that also new Alfa 166 will be offered for sale in Slovenia soon
after official inauguration. That is somewhere in the mid January next year.
Q: Does Slovenia have the chance that Fiat starts production of some parts in Slovenia?
A: As a matter of fact, we have been thinking about that, for our long-term politics includes tighter
producer-distributor connectivity globally. So we do not care where our factories are located but how
do they contribute to lowering of the production costs and whether their production is of good quality.
In Slovenia we will first try to consolidate our image, to support the importer technically in spreading
post-sales services network, we are having negotiations with certain Slovenian factories to introduce
production lines for Fiat. All these activities will mean considerable advantage for Slovene customers.
Q: You are thinking globally, so let me ask you about your views regarding markets world-wide and
about Fiatīs part in them.
A: We are now taking offensive, as our sales are raising for the second consecutive year. In the year
1996 we sold 2.350.000 cars and last year 2.770.000. Our short-term objective is to sell 3millions of
cars, but I cannot predict exactly when it will be achieved. At the moment Fiat holds firm positions on
some European, Latin American, and Asian markets and above all we are trying to hold or increase our
market shares there. Fiat Punto is a good proof of our success. Last year it was best-seller in its class
and besides, in many markets it won titles as soon as it appeared. It has become the harbinger of
spring for Fiat.
Q: As far as production is concerned, Fiat does act globally? Are you going to return to USA?
A: No, at the moment we are not interested. As I have told already, we are going to further promote our
activities on our existing markets. We are present in Poland, in Turkey, in India, in China and in also
South America. Well, we shall try to penetrate some new big markets, let me mention China and
Russia. We have recently signed a joint venture contract in Russia with GAZ. They will make Fiat
models, above all Mareo, Palio and Siena. I have mentioned already that reduction of production costs
but maintaining the same quality is of prime importance for us.
Q: What is the strategy of Fiat regarding its models, until the year 2000?
A: For us it is very important to continuously develop new models so that the customers and the
competition they all know that we are not standing still. So, next month we are going to present new
Fiat 600 and later, new Punto. I have already spoken about the great Alfa 166 and Lancia Dedra. We
will also not neglect other programs like vans and small trucks.
Q: Competition that is exceptional already, in the classes where trust Fiat is present, is now even harder
with appearance of some new models recently?
A: Yes, you are probably getting at BMW and Daimler-Benz. With the acquisition of Rover BMW
has got that class of customers which it has not yet made money in. Daimler-Benz has, on the other
hand, entered the class it had never been in before. Fiat accepts the competition and is not standing in
fear of it for it has enough professional and financial resources for further development, and it is up to
the customer to choose.
Q: What is your essential competitive advantage?
A: It is difficult to speak about advantage, however in all our products special attention is paid to a
design. We are working in Torino, the centre of Italian automotive industry. Around us, there are Italian
greatest designers concentrated. Fiat is developing its own design school, emphasising all traditional
design advantages Italian design school is famous for. Apart from that, our trust can offer modern,
ecological engines. Special concern is taken for colour combination, that are complementing the
designs. We have 12 basic colours, extended with some 100 casts. In addition to that, each model has
its own philosophy of the colours.