Fiat, Tata still in low-cost car talks, says CEO

Detroit, Jan 9: Fiat Chief Executive Sergio Marchionne said on Monday the Italian automaker was still talking with Indian partner Tata Motors about the possibility of making a low-cost car.

Speaking to Reuters at the North American International Auto Show, Marchionne also stuck to his 2010 targets for the group, even though analysts have described them as overly ambitious.

''I have no intention of moving '07 targets and I have no intention of moving '08, '09 or 2010,'' he said.

''We set the targets in 2004 for '04, '05 and '06 (and) '07 and we haven't missed one of them yet, and we closed the year 2006 totally in line with those forecasts from '04,'' he said.

Marchionne is aiming to raise profit margins above the industry average to as high as 5.3 percent by 2010 to confront growing competition in Europe from Asian manufacturers, among other targets.

Part of the drive to cut costs and improve efficiencies has been the forming of industrial alliances with automakers such as Tata.

Marchionne first spoke of the idea of making a low-cost car with Tata last September.

The idea comes after Renault brought to market the Logan.

''This is part of the DNA of Fiat going back a number of years and I think Tata is the perfect partner to work with,'' he told Reuters at the North American International Auto Show.

''How, when and under what circumstances that project will take form is still under discussion, so you need to give us more time.''

REUTERS