Fiat and Tata are far from reaching an accord to build jointly designed medium size pickups in the Mercosur region, just-auto has learned.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The automakers originally planned to start 20,000-a-year production in a Fiat plant in Cordoba, Argentina, in the second half of this year.
But sources close to the Italian automaker’s Brazilian base in Betim, Minas Gerais state, did not deny that the project was currently ‘on ice’.
The main reason is “misunderstanding” over changes Fiat wants to make to the Tata vehicles to suit Latin American market preferences.
Even the Tata Xenon launched in November last year in South Africa would not meet the demands of typical buyers of this type of vehicle in Brazil and Argentina, the sources said.
The Xenon, an evolution of the Telcoline, is built with both single and double cabs, two- and four-wheel drive and includes comfort features like air conditioning, power mirrors, windows and locks and a tilt steering column, among others.
While there are no concerns about the line’s strength and durability, essential for the conditions in the Mercosur region, there are apparently differences of opinion between Fiat and Tata over styling, packaging and finish.
The new model – Fiat’s first venture into larger pickups – is currently being designed in Italy, with a lot of input from Brazil. After all, the Italian maker rules here with its Palio-based Strada taking over 50% of the market for car-derived light pick-ups.
The Toyota Hilux is Fiat Brazil’s benchmark, as well as the Mitsubishi Triton (L200) and Nissan Frontier also sold here. The Xenon is seen as a ‘more rustic design’ less attractive to the region’s buyers, even with a Fiat badge on it.
Fernando Calmon
