Fiat is aiming to source more components from low-cost countries such as India and China.

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Head of purchasing Gianni Coda told Automotive News Europe he is aiming to source 11% of the group’s annual purchasing budget from low cost countries, up from the current 8%.


Coda said this would mean that EUR1.5bn of Fiat’s EUR34-35bn total budget would be switched to low-cost countries.


To make it viable to source from longer distances, Coda said that Fiat needed parts coming into the EU to be 8% cheaper. He expects most of the low-cost parts to come from existing suppliers finding partners in such countries with which to jointly produce parts more cheaply.

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