Ask The Best And Brightest: Can Fiat Sell 50k-100k Cars In The US Next Year?
The Fiat brand returns to the US later this year, spearheaded by the Mexican-built 500 minicar and followed next year by Abarth and convertible versions of the A-segment hatchback. With some 200 Chrysler dealers in major urban centers preparing to add the Fiat brand to their portfolios, Automotive News [sub] reports that the brand hopes to reach at least 50k units and as many as 100k units by next year. For comparison, the MINI brand sold 45,293 units in the last 12 months (ending in June) and 48,562 in the previous 12 months.
In short, Fiat-Chrysler hopes to sell (at a minimum) as many 500s as MINI sells of its Cooper, Convertible and Clubman. In a strong scenario they want the Fiat 500 to sell twice as well as the MINI. Even though it’s a smaller car with less power. The strangest part of the plan: the 500 only needs to be sold in America in order for Fiat to gain additional equity in Chrysler per its agreement with the US auto task force. We reckoned that this arrangement meant the 500 would be a small-volume, high-margin fashion accessory. Instead it seems, Fiat-Chrysler wants to put MINI out of business. Is this even possible?
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When Fiat was here once before, the problem was Service and Parts or lack of same and getting people the know how to know what to do is another big problem that Fiat has, even today according to Consumer Groups like in the UK "Which" have downplayed Fiat quality and how there vehicles Rust quickly! A big unknown in my estimation! As one author said, both Fiat and Chrysler are like two drunks trying to prop each other up, time is not on there side!
Given that Fiat and Chrysler routinely sit at the bottom of quality and reliability surveys all over the world, no. Like Lada in Canada, we will see an initial spurt of sales, followed by Fiats at the side of the road, or rusting out, followed by sales collapse.
Not a snow ball's chance in Hell! Won't sell 50K. Lucky to do 25K. This is a land where people think the MINI is tiny. The 500 is smaller than a MINI. There are not enough tragically hip folks, who also have some money, to make this a go. They're still paying off their Vespas. Fashion accessory cars are a niche when times are good. They are nonsense when times are bad. Practical people will go for Japanese/Korean cars at the same or likely far lower price, and get a better warranty and almost certainly better reliability - not to mention a roomier more comfortable car. I'll go on record for the second time - Chrysler isn't even going to get 200 dealers to sign up for this - not if they have to build separate facilities and hire separate staff.
Probably not. But I don't think the 500 is the boutique car its being made out to be. It is a very good little car that Chrysler very badly needs in its lineup, and if a Dodge/Ram/Chrysler dealership has a 500 it will be the only truly new model they've had since the Challenger.