MUST READING IT.....
When Village Motors in Los Angeles opens the first "Fiat Studio" this month, it will be the first of 130 such showrooms that will open by the end of the year to sell the Fiat 500. This small, four-passenger hatchback is part of Fiat's plan to combine itself withChrysler, and re-enter the U.S. market. The Italian automaker controls Chrysler through its 20% stake, and has set its sights on becoming a bigger global automotive player.
Many are bullish on the return on Fiat to the U.S. after a 27-year absence, this despite the recent closure of such automotive brands as Mercury, Pontiac, Saturn and Hummer. AutoNation, the biggest auto retailer in the world, will be opening seven of the Fiat dealerships.
"It's a tough market they're entering, but the product is very competitive and that's a good start," says Rebecca Lindland, auto industry analyst with IHS Global Insight.
Fashion or Flop?
Indeed, the 500, a diminutive model that will compete with the Mini Cooper, as well as cheaper compact models like the Toyota Yaris and Hyundai Accent, should appeal especially to car buyers who lean toward making buying decisions based on design and fashion. The 500 is more cute than anything else, with plastic body-color appliques on the dashboard to give the interior a fun atmosphere.
The 500 conjures up images of '60s era cars like the original Fiat 500 or Volkswagen Beetle, which had metal dashboards the same color as the exterior. Its 1.4-liter engine performs better mated to a manual transmission, but the automatic is not a dog by any means. Offering 30 mpg city/38 mpg on the highway, its fuel economy numbers are a bit low for a car this small, but they're not uncompetitive.
The 500 has a distinct styling advantage over the Yaris, the current Accent (though a new design is coming this summer), the Nissan Versa and Kia Rio. But there is a price premium for it, with stickers ranging from $15,500 for the entry level "Pop" model with a manual transmission, to $17,500 for the automatic "Lounge." In between, there is a "Sport" edition, also with a manual. A Yaris, by comparison, starts at less than $13,000.
There are ten exterior and ten interior colors to choose from, meaning buyers will be able to spec out their 500 to look unlike their neighbor's. Later this year, the company will add a Cabrio convertible, as well as an electric model. Next year, the Fiat Studios will get a turbocharged Abarth version, and potentially a micro-van based on the same platform.
Pound-for-pound and dollar-for-dollar, straight value shoppers might be hard pressed to choose a Fiat 500. But there is an attraction of a European brand the others don't have. And of course, Fiat it is the "new new thing."
The Mexican plant where the 500 is built is set up to produce 130,000 cars annually, but it's anyone's guess how many Fiat will sell in the U.S. That capacity number also includes Central and South America, where Fiat has been a mainstay and doesn't have brand awareness problems. Small cars sell better in those markets than in the U.S., meaning if Fiat sells 30,000 500's in 2012 after all its dealerships are open, it would be a good showing. The company is planning a no-haggle strategy for buyers.
Putting Bad Quality in the Rearview Mirror
"As long as they have the quality high and competitive so as to avoid bad publicity, they will do well if they play up the 'La Dolce Vita" personality of Fiat and the Italian roots," says Charlie Hughes, industry consultant at Brand Rules, and the former marketing chief of Fiat when it was operating in the U.S. in the late 1970s.
Hughes says the dark days of terrible Fiat quality during the Carter administration will only be relevant to a small number of buyers with long memories. One of them is Thomas Pellechia of Hammondsport, NY, an author. Pellechia said he lusted for a Fiat X1/9 in 1976, paying $4,000 for a chocolate brown two-seater with removable hard top
When Village Motors in Los Angeles opens the first "Fiat Studio" this month, it will be the first of 130 such showrooms that will open by the end of the year to sell the Fiat 500. This small, four-passenger hatchback is part of Fiat's plan to combine itself withChrysler, and re-enter the U.S. market. The Italian automaker controls Chrysler through its 20% stake, and has set its sights on becoming a bigger global automotive player.
Many are bullish on the return on Fiat to the U.S. after a 27-year absence, this despite the recent closure of such automotive brands as Mercury, Pontiac, Saturn and Hummer. AutoNation, the biggest auto retailer in the world, will be opening seven of the Fiat dealerships.
"It's a tough market they're entering, but the product is very competitive and that's a good start," says Rebecca Lindland, auto industry analyst with IHS Global Insight.
Fashion or Flop?
Indeed, the 500, a diminutive model that will compete with the Mini Cooper, as well as cheaper compact models like the Toyota Yaris and Hyundai Accent, should appeal especially to car buyers who lean toward making buying decisions based on design and fashion. The 500 is more cute than anything else, with plastic body-color appliques on the dashboard to give the interior a fun atmosphere.
The 500 conjures up images of '60s era cars like the original Fiat 500 or Volkswagen Beetle, which had metal dashboards the same color as the exterior. Its 1.4-liter engine performs better mated to a manual transmission, but the automatic is not a dog by any means. Offering 30 mpg city/38 mpg on the highway, its fuel economy numbers are a bit low for a car this small, but they're not uncompetitive.
The 500 has a distinct styling advantage over the Yaris, the current Accent (though a new design is coming this summer), the Nissan Versa and Kia Rio. But there is a price premium for it, with stickers ranging from $15,500 for the entry level "Pop" model with a manual transmission, to $17,500 for the automatic "Lounge." In between, there is a "Sport" edition, also with a manual. A Yaris, by comparison, starts at less than $13,000.
There are ten exterior and ten interior colors to choose from, meaning buyers will be able to spec out their 500 to look unlike their neighbor's. Later this year, the company will add a Cabrio convertible, as well as an electric model. Next year, the Fiat Studios will get a turbocharged Abarth version, and potentially a micro-van based on the same platform.
Pound-for-pound and dollar-for-dollar, straight value shoppers might be hard pressed to choose a Fiat 500. But there is an attraction of a European brand the others don't have. And of course, Fiat it is the "new new thing."
The Mexican plant where the 500 is built is set up to produce 130,000 cars annually, but it's anyone's guess how many Fiat will sell in the U.S. That capacity number also includes Central and South America, where Fiat has been a mainstay and doesn't have brand awareness problems. Small cars sell better in those markets than in the U.S., meaning if Fiat sells 30,000 500's in 2012 after all its dealerships are open, it would be a good showing. The company is planning a no-haggle strategy for buyers.
Putting Bad Quality in the Rearview Mirror
"As long as they have the quality high and competitive so as to avoid bad publicity, they will do well if they play up the 'La Dolce Vita" personality of Fiat and the Italian roots," says Charlie Hughes, industry consultant at Brand Rules, and the former marketing chief of Fiat when it was operating in the U.S. in the late 1970s.
Hughes says the dark days of terrible Fiat quality during the Carter administration will only be relevant to a small number of buyers with long memories. One of them is Thomas Pellechia of Hammondsport, NY, an author. Pellechia said he lusted for a Fiat X1/9 in 1976, paying $4,000 for a chocolate brown two-seater with removable hard top
No comments:
Post a Comment