In my opinion this is a very wise strategy because now the Linea could be given a better identity.The C segment sedan's right now are selling well and there is not much of a choice as far as diesel engines[where as there certainly is demand for the same,even if Honda disagrees on that] are concerned so this is certainly a very wise decision by Fiat.Also they will not be directly competing with tata just yet with the Linea.
The linea would however be disappointingly be powered only by 1.4Lpetrol and 1.3L multijet diesel engines ,so don't expect to set the streets on fire,but yes they would be frugal to run and cheaper to buy.
Fiat say the localization levels for the Linea will be very high.
[Source:Hindu Business Line]
Edit: At the Auto Expo fiat say the Linea would be launched by September 2008,while the Palio is expected to get a diesel heart[1.3L MJD] by december[2007] end and would[palio diesel] be priced at 4.7 lakhs ex-showroom.
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The Fiat Grande Punto and Linea engine specs[expected] for India
