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Bianchi takes over as Fiat chairman in board rejig

V Phani Kumar

The board of Fiat India has been reconstituted with its managing director Maurizio Paulo Bianchi being elevated to the chairman's slot.

He replaces Vinod Doshi of Premier Automobiles who was non-executive chairman with effect from May 15 this year.

At a board meeting on May 24, Fiat has also appointed B Frate as a wholetime director, and Jan Hum as a non-executive director of the company, taking the strength of the board to eight members, company sources said.

The new board also comprises P Sighicelli, G Prinsi, G Vernaro and Ramesh Adige. Maitreya Doshi is now the only PAL representative on Fiat's board.

According to company executives, Fiat's stake in its Indian arm has now increased to 98 per cent. Fiat started its Indian operations seven years ago as Ind Auto, a 51:49 joint venture with PAL.

Subsequently, PAL has not kept pace with Fiat's investments in the company, leading to a steady decline in their holding in Fiat. PAL's equity in Fiat India now stands at 2 per cent.

Meanwhile, Fiat is planning to launch the diesel version of the Palio in early 2003. The diesel version will come with a 1.9-litre engine and is expected to deliver over 80 bhp power, making it the most powerful diesel car in its segment.

The company is currently working towards maximising the localisation content of the car, so that it is priced competitively.

Fiat on Wednesday announced the launch of two new variants of the Palio -- the Adventure and the Weekend, priced at Rs 695,000 and Rs 670,000, respectively (ex-showroom Delhi).

Vijay Chandorikar, director (commercial), said the company expected to sell around 2,000 units of these two models this year. The company is expecting to sell 50,000 cars this year, including 42,000 units of the Palio.

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