Fiat sets a new strategy for Lancia.(News)

Byline: Luca Ciferri Automotive News Europe

Lancia has abandoned its long-term plan to sell 300,000 units a year. The Fiat SpA unit is now projecting sales of 200,000 units annually by the end of the decade.

But even that reduced goal will be difficult to achieve. Last year Lancia's global sales collapsed to 109,534 units - down 26.3 percent from 2001 and about a third of the 313,000 units sold in 1990.

Additionally, Lancia is even more heavily dependent on its home market. Last year, non-Italian sales made up 10.3 percent of total sales. In Lancia's best years, more than ...