Fiat Prepares to Launch Budget Brand in Europe

Chrysler Fiat Automobiles NV hopes its new entry-level small car line will create a new European market segment affordable compacts when the brand's first sedan goes on sale in Turkey in November, Automotive News Europe reports.

CFA presented the line's sedan in concept form as the Aegea at the Istanbul auto show in May. Media reports speculate the brand will be called Egea.

FCA will unveil production versions of hatchback and wagon variants at the Geneva auto show next March, according to ANE. All three body styles share the same platform that carries the Jeep Renegade SUV and Fiat 500L mini-wagon and 500X mini-crossover. Reports say the cars will retail for about €12,000.

The Egea sedan will replace the Fiat Linea and compete in eastern European markets with the Peugeot 301 and Skoda Rapid, ANE says. The online newspaper indicates the hatchback variant will succeed the Fiat Bravo and target buyers in western Europe.

FCA plans to produce the Egea line in Turkey through its Tofas venture with Koc Holding AS. Tofas announced previously it aims to make about 700,000 of the cars between the end of 2015 and 2023, mostly for export.