Fiat is aiming to source more components from low-cost countries such as India and China.
Go deeper with GlobalData
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
