Fiat has just launched its all-new Tipo sedan, built in Turkey and called the Ægea in that market. It replaces the Linea in the South-European markets where compact sedans are still popular. A five-door and station wagon are due later to appeal to the more hatchback-oriented markets. The Tipo will be positioned as an entry-compact “rational / functional” model under Fiat’s dual strategy of functional / rational vs. emotional / aspirational models. That means it will have the size of a compact model but priced between subcompact and compact, like the Seat Toledo and Skoda Rapid. Its styling and features will be no-frills and it will be powered by a “old fashioned” naturally aspirated gasoline engines or turbocharged diesel engines.
For the last few decades, very attempt by Fiat at challenging the Volkswagen Golf and other compact segment leaders have failed miserably, with the Bravo/Brava, Stilo and then again the Bravo all remaining niche players, especially outside of their home market Italy. From that perspective I can understand why Fiat would try an alternative strategy by offering a no-nonsense car for a bargain price, undoubtedly looking at the success of Dacia, but also of the Citroën C4 Cactus, another no-frills compact model that has struck a chord with European buyers.
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