The New Fiat Palio, Fiat Palio Weekend And Fiat Siena
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Fiat Palio, Palio Weekend and Siena: a process of continual evolution  
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Fiat Palio

Photo: Fiat

Turin - Italy and Brazil again join forces to bring us a car (or rather a family of cars) that constitutes a veritable distillate of innovation, style and engineering. The creativity and automotive know-how that made the Fiat Palio, Palio Weekend and Siena an unprecedented success on the Brazilian market have been revived to offer cars with updated style and content just four years after the initial launch. This is a sign of great vitality and an ability to offer a fast response to customer requirements - or even to pre-empt them.  

Four years ago, Brazil was the stage for the world launch of the Fiat Palio, the first 'world car' to be produced and launched locally. The up-to-date design of this model introduced new standards for this type of car in the country and the Palio immediately established itself as a benchmark in its segment for safety, performance, style and quality.  

The models in the Fiat Palio family went on to become a world success. More than one and a half million have been sold to customers in 41 markets (including Germany, Italy, France, Spain, South Africa, Morocco, Russia, Vietnam and India). The car is produced in ten countries and sold in and exported to another 31. Nowadays the Fiat Palio, Palio Weekend and Siena are present in four continents and Brazil accounts for 80% of total Palio family model production. These figures serve to emphasise Brazil's importance within the world motoring industry.

Fiat therefore decided to give the 178 family a major facelift and bring in new standards of quality and engineering with the aim of consolidating and extending its presence in Brazil and other markets where the Palio is already a success.  

The three profoundly different cars we see today are the outcome of in-depth research, innovative research, exhaustive testing and investment in up-to-date production processes. The three cars guarantee high standards of quality and engineering and represent a true qualitative leap as far as good looks, comfort, safety and performance are concerned.  

Traditional, demanding customers and also customers who seek practicality and driving satisfaction will all be able to meet their present and future needs from the Palio family.

Fiat Auto is offering all-new cars with its Fiat Palio, Palio Weekend and Siena 2000 range. Suffice it to say that 80% of the components have been changed.  

The Brazilian market

From the end of 1997 to the beginning of 2000, car sales plummeted in Brazil as a result of the economic crisis suffered by the country. New manufacturers also entered the Brazilian market at the same time. Yet Fiat succeeded in holding on to a share equal to 25% of the total market.  

In Brazil, segment A, i.e. cars with capacities up to 1000 cc, accounts for more than half of new car sales and thus attracts the attention of all local manufacturers. Despite the launch of new models and lively competition, the Fiat models occupy a position of great importance within this segment.With the advent of the new Palio, Fiat aims to become the high volume production car leader.  

Fiat significantly increased its share of segment B when it launched a Fiat Palio with a 1.3 16v engine. This car has stood its ground in the face of dangerous rivals. The new Fiat Palio with 1.3 16v or 1.6 16v engines represents an excellent response to different customer needs within this market band.  

Fiat's position in segment C1, i.e. the compact saloon segment, is reinforced by the launch of the new Siena. The company aims to absorb some 25% of this market.  

The compact station wagon segment, segment Cw, has grown in importance in recent years. Much of this growth has been due to the launch of the  Fiat Palio Weekend, which has updated the image of these cars. The model swiftly became the leader in this segment and consolidated its position by launching innovative versions such as the Adventure. This position will almost certainly be reinforced by the arrival of the new Fiat Palio Weekend.

Fiat Automóveis, biggest manufacturer in Brazil  

Fiat Automóveis is the youngest of the four big Brazilian manufacturers and Fiat Auto's biggest automotive unit outside Italy. Recently it achieved an important goal when it became the biggest manufacturer in the country (33% of national production) and leader in car sales within the Southern Cone Common Market, Mercosul. This result was achieved as a result of Fiat's ability to innovate at all times and in everything: engineering, safety and customer service.  

Another example of Fiat Automoveis's success is represented by the percentage growth recorded during the period between 1981 and 1999: while the market grew by 225%, Fiat's growth over the same period was 497%.  

The Betim plant in the state of Minas Gerais, Brazil went into operation on July 9, 1976. Fiat has been responsible for building up one of the country's main industrial centres around the plant. It accounts for some 10% of Gross Domestic Product for the State of Minas Gerais and has created 20,500 jobs, including 11,500 direct jobs and 9000 indirect jobs. A further 50,000 jobs have been created within dealerships and suppliers.  

Current daily production is 1740 cars and 1200 engines per day and the company continues to invest in new technology and products. $ 1.5 billion were invested during the period between 1997 and 2000 and the range of new ventures included two new factories: one producing FIRE power units and an IVECO-FIAT light commercial vehicle production plant.  

Fiat's presence in Brazil has always been marked by innovation. Examples include the first car to run on alcohol in Brazil, the first pick-up derived from a saloon, the first one-litre engine, the first 16 valve power unit, the first turbo engine, the first car with an airbag and the first five cylinder engine. Fiat was also responsible for introducing a six speed gearbox to the country and the first small pick-up with a long cab. And now its new people's car is going from strength to strength.  

The choice of Brazil as a base for the launch of the Palio world car also brought Brazil into the wider scenario of the world motor industry.  

Setting trends  

Fiat is not just innovative as far as products are concerned. During its 24 years of production in Brazil, the company has always been bold enough to take the initiative and sometimes even to set trends. For example, it gained two international certifications ISO 9002 and ISO 14001 simultaneously. And it also launched the Autonomy programme that made Fiat the first and only manufacturer to product a factory-built car for the disabled. And Fiat's Youth programme is linked with a series of initiatives that will involve 10 million public and private school students throughout the country this year.  

Fiat - which has been made an Honorary Citizen of Betim - invests more than 5 million Reais each year in social and educational campaigns and its Perpetual Motion programme (a branch of the Fiat Youth program) plays an important part in supporting the education and training of Brazilian students. The programme takes the form of a set of up-to-date teaching materials (distributed free to schools in the country) that are designed to prompt classroom debate on the important topics of alcohol and drug abuse, road rage and environmental protection.  

(September 23, 2000)