Fiat had already decided to launch its low cost brand in emerging markets such as the South American market, but given the current economic crisis, the brand could be considered for the Eastern European market as well.
Sergio Marchionne has announced that three new models will be launched in 2010, which could offset sales problems in the current market.
The Fiat low cost brand will be competition for products such as Dacia, which Renault successfully launched in Europe.
Currently the new Fiat brand is without a name, with suggestions ranging between Innocenti and Autobianchi (neither in my opinion, would be a safe choice!), although something entirely new could come of the venture, including collaboration from tata.