QOTD: Marchionne Says Government Made Him Sell Fiat 500

Derek Kreindler
by Derek Kreindler

An event held at Washington D.C’s Brookings Institute saw FCA CEO Sergio Marchionne and former National Economic Council head Larry Summers discuss the auto bailout on its five-year anniversary. As always, Marchionne had some colorful commentary, with a one interesting nugget about Fiat.

According to Christina Rogers of the Wall Street Journal, Marchionne claimed that the Fiat 500 was only imported to the United States due to the government’s hand, with Marchionne stating

“It was a condition assigned to the [bailout] deal”

This has previously never been stated in any bailout related discussion – only the Dodge Dart and its 40 mpg capability has been highlighted as a specific requirement of the bailout, in terms of product.

If this is indeed correct, it would add some context to Fiat’s confusing position in the marketplace. For Fiat to thrive in America, it would make sense to add more product that is better aligned to American tastes. All we’ve gotten are the 500 and 500L, which are both unsuited to the vast majority of American tastes and driving conditions.

So far, Fiat’s American arrival has been an expensive endeavor that has not exactly fared well. The costs of homologating the cars, building the 500 in a new factory in the NAFTA zone, establishing a dealer network and marketing the car is certain to be a $1-billion dollar expenditure. Perhaps this is just a bit of bluster by Sergio to obfuscate the fact that Fiat isn’t burning up the sales charts in America. I am sure that Fiat dealers would like a more lucid answer.

Derek Kreindler
Derek Kreindler

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  • Danio3834 Danio3834 on May 22, 2014

    Sergio has gone on record stating that the 500e specifically is a compliance car and that alone. My guess is that's the car he was referring to.

    • Pch101 Pch101 on May 22, 2014

      Marchionne's comment was taken out of context. He said that a small car was required as part of the deal. But he also said that "I was going to bring it (the 500), anyway." In essence, he agreed to do something that he would have done, regardless.

  • Panzerfaust Panzerfaust on May 22, 2014

    I really like the 500, but it is true that Fiat is not doing well in the U.S. right now. My wife and I visited a Fiat dealer recently and they still had 2013 inventory on the lot.

  • HotPotato HotPotato on May 23, 2014

    Sweet! The wife-to-be wants a 500. I want her to get the Turbo. If they've got '13s on the lots, then it sounds like we can find a deal on one. I rented a 500 (non turbo) for a while to see. Bouncy ride, numb steering, annoying Hyundai dual-clutch autobox, relentlessly stylish, fantastic exhaust note, astonishingly roomy, and very cheap to buy. Despite being a 1400cc city car, it's not a transportation appliance -- it's an adorable and insistent puppy tugging at your sleeve to play. It wants you to rev the bejeezus out of it, and you should, because driving a slow car fast (especially one that looks like a cartoon car and has a sexy exhaust note) is FUN!

  • Kris66 Kris66 on Nov 17, 2014

    I am 6'1" barely short of 6-2, 210 lbs built like a college linebacker/safety and I fit with plenty room to spare in my Fiat 500 Pop Manual. And never have had trouble getting up to speed on the highway. Made many road trips with 2 passengers plus luggage, from dallas to Galveston many times With two teenagers and have averaged as high as 43 mpg when intentionally hyper mile-ing and as little at 32 when hauling ass. And having the engine make noise in the 500 is not a bad thing, this car wants to be revved and the more revving the better it sounds. Funny, my ex wife will not even get in to my Fiat, she "thinks" it's ridiculously small. Yet she drove a 95 BMW 3 series for 12 years and loved it. I was always aching after driving that BMW, I was so cramped in the driver's seat. American's preconceived notions are our own worst enemies sometimes.

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