Fiat sets up intl purchasing office

New Delhi, May 7

Driven by cost advantage that countries such as India and China offer, the Italy-based Fiat Group announced setting up of an international purchasing office in New Delhi that can support its global production facilities in Europe, North America and Latin America. Through its purchasing office, Fiat will source components for different vehicles, including tractors, cars and commercial vehicles.

“We are sourcing auto parts worth €30 million at present from India and by 2010, our target is to increase the number to €50 million,” said Mr Gianni Coda, Fiat Group Executive Committee Member & Chief Executive Officer for the Group’s international purchasing operations.

Fiat began sourcing from China a year ago at a volume of €200-million worth of components in the first year. When asked if China was more competitive compared to India, Mr Coda replied, “There is not much difference. Both the countries roughly offer 12-15 per cent cost advantage. It is just that in some parts like glass, India has an advantage and in some cases, China scores higher.”

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