Italian automobile companies keen to invest in Pakistan

[Abu Zarrar]

Islamabad

Italian automobile companies are keen to invest in Pakistan. In this regard, President of Ansaldo Energia, world fourth largest engineering company Giuseppe Zampini held detailed discussion with Federal Minister Industries and Production Ghulam Murtaza Khan Jatoi.
Giuseppe Zampini told the Minister Ansaldo Energia is a leading international player in the power generation industry to which it brings an integrated model embracing turnkey power plants construction, power equipment (gas a steam turbines, generators and micro turbines), manufacturing and services and nuclear activities.
Speaking on the occasion the Minister said that Pakistan is looking for strengthening of relations with Italy. He said that the economy of Pakistan is progressing and initiatives taken by the present democratic government have created investment friendly environment in Pakistan for the international community get invest especially in Industries, Production and Infrastructure developments. ‘’Industrial corporation mutual trade and people to people contact may be increased for strengthening of bilateral relations’ ‘he added.
The automobile industry was also discussed in the meeting and the Ambassador shared with the Minister the promotion of Italian auto companies in Pakistan. The Minister explained how they are necessary to give companies incentives and tax relaxation for foreign companies who want to set up industries in Pakistan.
The Minister said that industries for new technology can be set up in Pakistan. Pakistan with an investment-friendly atmosphere, offers attractive opportunities for foreign investment including joint ventures, there is a tremendous potential for foreign investments. The ambassador apprised about the friendly relations Pakistan and Italy are enjoying at various levels.

 

[Clutch]

Italian mainstream cars suck ...

 

[Gufi]

Yes, Italian reliability with Pakistani traffic. A match made in hell

 

[VCheng]

Yes, Italian reliability with Pakistani traffic. A match made in hell

Please don't worry. Ambassadors say feel-good statements like this all the time. Any major manufacturer, Italian or not, makes such decisions based on a precisely researched business plans showing an adequate return on investment with acceptable risks.

 

[S.Y.A]

Ambassadors say feel-good statements like this all the time.

it is not the ambassador, it is the president of the company.

 

[VCheng]

it is not the ambassador, it is the president of the company.

The president of a power company talking about cars would be even lower than an Ambassador.

the Ambassador shared with the Minister the promotion of Italian auto companies in Pakistan.

 

[S.Y.A]

The president of a power company talking about cars would be even lower than an Ambassador.

ohhhh, yes, sorry about that.

 

[VCheng]

ohhhh, yes, sorry about that.

No worries Sir.

I hope Italian cars make a comeback in Pakistan. There was a time, several decades ago, when FIATs were seen regularly on Pakistani streets. The 124p even came as a Lada clone for many years.

 

[S.Y.A]

No worries Sir.

I hope Italian cars make a comeback in Pakistan. There was a time, several decades ago, when FIATs were seen regularly on Pakistani streets. The 124p even came as a Lada clone for many years.

my grandfather still has a fiat uno, I think, had a crapped out 1300cc diesel engine, so had it fitted with a 1.6l corolla one. very strong body though, virtually indestructible. still runs.

 

[VCheng]

my grandfather still has a fiat uno, I think, had a crapped out 1000cc diesel engine, so had it fitted with a 1.6l corolla one. very strong body though, virtually indestructible. still runs.

I think the engine/mechanical problems of mainly European cars in Pakistan are more due to the local mechanics who do not understand much beyond a few basic Japanese models. The availability of smuggled (Kabli) parts is another thing that favors the Japanese makes.

 

[S.Y.A]

I think the engine/mechanical problems of mainly European cars in Pakistan are more due to the local mechanics who do not understand much beyond a few basic Japanese models. The availability of smuggled (Kabli) parts is another thing that favors the Japanese makes.

yeah, it was one of the few that were imported. no wonder the mechanics did not know anything about them. and in the past 3 decades japanese manufacturers have established a sort of a monopoly/cartel. so no chance at all of mechanics being skilled at repairing other makes

 

[VCheng]

yeah, it was one of the few that were imported. no wonder the mechanics did not know anything about them. and in the past 3 decades japanese manufacturers have established a sort of a monopoly/cartel. so no chance at all of mechanics being skilled at repairing other makes

It is not exactly a monopoly since any new manufacturer can establish their own good after sales service and parts departments to compete if they wanted to, but the problem remains the investments needed compared to the relatively small size of the Pakistani market.

 

[S.Y.A]

It is not exactly a monopoly since any new manufacturer can establish their own good after sales service and parts departments to compete if they wanted to, but the problem remains the investments needed compared to the relatively small size of the Pakistani market.

all comes down to there stamina?

 

[VCheng]

all comes down to there stamina?

That is determined by the bottom line. Look at the history of Italian marques in a large market like USA. Despite wanting to make a success of it, many Italian companies have had to fold. Many reasons go into such a decision. Look at what has happened to car manufacturing in Australia for all marques, not just Italian ones. This is a hugely competitive and tough business to run successfully over the long haul.

 

[Gufi]

Please don't worry. Ambassadors say feel-good statements like this all the time. Any major manufacturer, Italian or not, makes such decisions based on a precisely researched business plans showing an adequate return on investment with acceptable risks.

Well, Pakistan is a gold mine for any automobile company. See, no safety features required, no call backs whatever the issue, no quality standards required, a logo sells, and no one cares what the price is as long as it is a car with 4 wheels people shell out 0.8 million for a mehran and 2.5 million for a watered down Altis, what else would a automobile company want. Finding a local partner to take care of the assembly and happy company.