According to Enrico Pavoni, the managing director of Fiat Polska and Fiat Auto Poland, a new production facility in Tychy near Katowice will cost at least EUR200m. Fiat is planning to produce a new five door car in the Polish location.
Enrico Pavoni says that this sum does not even include the amount that will have to be invested by those that supply his company. Plans are now complete and infrastructure work is about to begin. The first car should come of the production line at the beginning of next year. The new model will probably replace the seicento. Most auto analysts think that this is a good idea.
The Seicento has now been on the market for several years and clients always want something new. Wojciech Drzewiecki, MD of auto market analysts Samar therefore thinks that the introduction of a new car in the mini segment to be a good idea. He also thinks that the timing is good as it is likely to come at a moment when the market begins to turn in an upwards direction.
This year Fiat Auto Poland is hoping to build around 200,000 cars, more or less the same as last year. The Italians are also planning to import several new Fiat, Alfa Romeo and Lancia models. Management believes that this year will be better than last. In 2001 they noted a loss of nearly PLN290m. They think that they will be in the black this year but only just.
Pavoni believes that an improvement on the Polish market should occur in the second half of this year. Fiat is counting above all on a drop in the value of the PLN and thus greater export revenues. At the same time they expect the effects of the recent falls in the rate of excise duty and the lowered attraction on importing used vehicles to seep through into the market and encourage people to go out and buy cars.
Enrico Pavoni insists that Fiat is not likely to go through another round of lay offs although production could be halted again at Tychy due to the current lack of buyers on the domestic market.