The internets are abuzz with Fiatitude. Motor Authority reports that CEO Sergio Marchionne fingers distribution, rather than manufacturing, as Fiat's greatest hurdle to selling cars in the U.S. True dat. Setting-up a factory in Mexico wouldn't be impossible. But setting-up dealers and warranty service departments (which Fiat will need to convince people their cars aren't the unreliable rust buckets of yore) will cost serious dough. Wth U.S. car sales on the wane, who wants to buy a franchise from a risky manufacturer? Marchionne says he's shopping for an American partner. You just know it's going to be Chrysler. Maserati TC redux? Meanwhile, Reuters reports that the Italians (who already own the Fiat, Lancia, Alfa Romeo, and Maserati names) are considering an additional brand to sell extremely low-cost vehicles in developing countries. Come again? The Fiat name has a lot of equity in the developing world (including Brazil, where the brand is popular). And besides, building cheap and cheerful cars is Fiat's forte. Anyway, my suggestion for a name for the automaker's low cost brand: Fiat.
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Well, Fiat is pretty much on par with Renault, and both brands have strong appeal to european middle-classes. Renault did buy Romanian Logan for its cheap car, even though it was such a runaway success that most people now call it the Renault Logan.
So there really are arguments on both sides.
Yes, those old Fiat’s had a ‘proof rust’ warranty on every miserable one sold in the U.S.
Renault makes some pretty nice vehicle. Peugeot has some real good diesels but they seemed to be completely disconnected with the American consumer. Even the turn stalk was on the wrong side of the wheel… but the seats were top notch. Thank God because I spent plenty of time in them waiting for a tow truck.
cheap, cheerful, cute…rusty!
That being said, I like these little 850 convertibles. I’d have bought it for a novelty and put it on a key chain.
At least once a week we are entertained by our Provincial Liberal Party leader(s)antics when claiming that they will bring this new Fiat factory to Ontario.
http://www.theglobeandmail.com/servlet/story/RTGAM.20080429.wgmontario0429/BNStory/National/
Each meeting the tax payer bribes get better and better, however the catch is that Fiat will have to endure an anti-business, high tax, province (Ontario). As a bonus, any new factory will have to hire (or spend time, resources fending off) the Canadian Auto Workers.
From the politicians comments, you can see that they are actually surprised that Fiat has not already begged to sign up. Perhaps it is because CEO Sergio Marchionne is Canadian – and he knows first hand what a bunch of closet socialist these guys actually are.
Hell, he can get that treatment in Italy – and the food is better!
@AKM: They bought Dacia, the Romanian car producer. Logan is just the name of the car. It’s Dacia Logan.
Well I hear Daewoo USA is for sale (yeah, it’s still in biz) and may well have options with some 250-300 dealers in the United States as well as a small California operation still providing parts to ex-Daewoo dealers.
If FIAT are insistent upon wasting their money on trying the US market again, they could buy Daewoo USA and set up FIAT in America.
Perhaps Chryslereberus would be interested in selling their Toluca Mexico plant.
Or perhaps Mitsubishi would be willing to contract manufacture FIAT cars in their Normal Illinois plant.
(“Where do you live?” “Normal.” “No, I asked where you live, not what you aren’t!”)
Despite the rust problems, I really liked my 68 124 Sports Coupe. It was the first car I ever drove that wasn’t an appliance. In 1968, there weren’t many affordable cars with a high revving twin cam engine, 5 speed MT and disc brakes at all corners.
I am stamping my feet and yelling “I WANT AN ABARTH!!! I WANT AN ABARTH NOW!!!!!”
Blah, Fiats don’t rust easily anymore. Down here we have plenty of them. At least 5 years before a hint of corrosion appears, if it does.
Their bodies are now protected with ED,Cataforesis,E-Coat,ELPO whatever the name is by the manufacturer.
And they’re reliable too. My mom’s Fiat didn’t have major issues since new, it has 350K kms on its original motor, and it’s still ticking.
Also, they have one of the best manual gearbox gear ratios for small cars.
I think they’re right now Nº1 in Brazil. GM is 3rd.
Nice models: Grande Punto, 500 (the new one)
Mitsubishi and Suzuki both have under-utilized dealer networks. Maybe a deal could be made there. Unfortunately the Isuzu franchises have already all been strangled, because picking up that network six years ago would have been an easy way to get going. Or Fiat could get really crazy and start with utilitarian cheap and cheerful trucks marketed through the Case-New Holland and Iveco dealer networks. Both are part of the Fiat Group, as are Ferrari and Maserati. Fiat Group never left the US, they just left the volume passenger car business.
Alfa is the brand they should bring back first. It has more romance and less stigma attached to it than Fiat does in the US and could be used to market a line up of premium smaller cars.
Wouldn’t it be better to offer a deal to dealerships that aren’t failing, and whose manufacturers aren’t leaving them?
Several manufacturers are trying to get rid of dealers. Here’s a win-win idea.
Mr. Dealer, you give up your 2.8 flavored dealership voluntarily, and we will pay for you to become a FIAT dealer. It could be cheaper than actually buying them out of business. Lot’s of business owners are emotional about their businesses and never want to see them go away.
I could also see some of the chains going for package deals.
I owned a 1969 124 Sport which I bought in June 1976 for about $800 due to some rust on the rear wheel wells. After some sandpaper, bondo, and primer, along with an oil change, it was good to go. It was the hardtop 4 seat version of the 124 Spider. It had a great engine and transmission, decent brakes, and steered and handled well compared to what I could have bought for that amount of money. Alone, I took a long road/camping trip over the summer up Highway 61 to Canada, and drove across to Montreal. The car always ran beautifully. I drove it down to NYC, in August to visit my sister, and sell it, as I was going back to college and didn’t need a car.
Someone bought it and came back the very next day asking for their money back. They said the car was haunted, that it wouldn’t start for them and they had to have it towed. I told them the car never had any problems as long as I owned it, which was true. I refused to refund their money. Looking back, it is possible they didn’t know how to use a manual choke and they flooded the thing.
When I think of FIAT, I think about that experience.
If FIAT wants to make money in the U.S. they will need to sell cars with automatic transmissions, fancy radios, cupholders, and wide seats for our stupid fat butts. How sad.
“Peugeot syndrome”; that is, cars that seem to have proven records in countries with no roads at all, but won’t start if it rains.
Chryslerbus should be jumpng up & down to welcome the FIAT pisanos as Nardelli’s root is from.
Fix It Again Tony.
They used to be cute little cars, see lots of them growing up in Hong Kong. They dont fae much worse than the British cars.
# jerseydevil :
May 22nd, 2008 at 9:46 am
I am stamping my feet and yelling “I WANT AN ABARTH!!! I WANT AN ABARTH NOW!!!!!”
I second what jerseydevil says!
carlos.negros: Someone bought it and came back the very next day asking for their money back. They said the car was haunted, that it wouldn’t start for them and they had to have it towed. I told them the car never had any problems as long as I owned it, which was true. I refused to refund their money. Looking back, it is possible they didn’t know how to use a manual choke and they flooded the thing.
Had the same thing happen with a Beetle I sold in 1994 or so. I told the new owner what would happen maybe twice a year. Just tap the starter and the car will start every time. The starter would get hot during a hot day and the next time the car wouldn’t.
New owner had this happen and rather than try to start it proceeded to try to wreck my reputation with coworkers over it. I explained to everyone that brought it up the truth of the situation. Finally after two weeks I went and started the car exactly the way I told him and proceeded to warn him about ever opening his mouth with lies about me ever again. He stayed away from me and never brought it up again.
I think the modern Fiat is far from the old Fiat. Today’s Fiat is much more like Kias and Hyundais. Nice cars. Funky styling. Nice drivers. A bit small for a traditional American owner. I hope they come and I hope they do well. I’ve liked every one I’ve driven and everyone I’ve owned.
I hope they bring 45 mpg gasoline cars back to America (without the hybrid tech).
Fiat and Tata already have alliances, so perhaps the Jaguar/Land Rover dealer network is an option.