Fiat back in Oz... On sale from June

Iconic Italian mass-market brand Fiat is set to return to the local market in 2006. It's official.

The announcement was made by Ateco Automotive Pty Ltd. The privately-owned importer of Alfa Romeo and more recently, Ferrari and Maserati, Ateco currently imports Fiat's Ducato range of light commercial vehicles into Australia.

Fiat will make its debut with the all-new Fiat Grande Punto. The sassy small hatch will be previewed at the Melbourne International Motor Show in February with, according to Ateco, sales starting across Australia in the middle of 2006.

Although dealers will be appointed specifically as Fiat car dealers and will be expected to set up a separate operation over time to handle the new marque, it is expected that the majority of Australia's 17 Alfa Romeo dealers will also represent Fiat.

Pundits have tipped Ateco would re-introduce Fiat to the Australian market on an almost quarterly basis since 2002. The introduction comes in the year Ateco will relinquish the Kia distributorship for Australia.

"We have always made it clear that we had to have the right product at the right retail price," explained David Stone, General Manager for Fiat cars in Australia.

"We have now reached that point. The Grande Punto is an outstanding new car, it has pricing that will make it highly competitive and, as a newly launched model, it has a full production life ahead of it over which we can re-coup launch and set-up costs," he said.

Ateco says it will not launch existing Fiat models Down Under, rather it will add selected new models to the range as they are launched in Europe. Although the brand will initailly be limited to the Grande Punto, Ateco will launch a full range of versions, including a diesel variant.

Not quoting pricing at this time, the company says the new car(s) will be "highly competitive" and that the Australian Grande Punto will be fully equipped.

"We want this to be a long term return," said Stone. "That means it must be a successful and profitable business for both ourselves and the dealers. Fiat owners have to know that we are here with Fiat for the long term and their cars will be supported for their full lives."

According to Ateco, the Grande Punto will be positioned at the premium end of the small car spectrum.

Fiat customers are expected to be young, equally split between male and female, looking for a distinctive, different style of car that offers more than just transport, but which at the same time has no price drawbacks, the company said.

"The return of Alfa Romeo just over seven years ago changed the Australian car market and gave car buyers a product that was and is decisively different from its rivals," says Mr Stone. "In 2006 we plan to make Fiat have the same effect ."