Will Fiat Survive in the USA?

Word on the street is, 5 years in, many Fiat dealers are not re-upping their franchise agreements with FCA. Dealers had to build stand-alone dealerships, to the tune of $1M and beyond, with the Sergio issued promise of many Fiat models, and also Alfa Romeo models to sell to the local enthusiasts. Mostly, this has not come to pass. For one, Cincinnati already lost their dealer in Kings Automall (it is now a Toyota Truck dealership).

If this is in fact true, what do you think is the over/under on Fiat as a brand remaining in the USA ???

That's lack of models and diversity, delays in the Alfa lineup and the fact these must be standalone dealerships makes it a difficult financial proposition.

Add this to it being ranked the worst car in initial quality it isn't good

Seriously, How long has the 500 been in production in it's current form? Going on 9 years now since it launched in Europe. The other models that have come after that have been back of the pack runners at best. I mean they were in trouble the first year when they couldn't even sell through that year's production. It's only getting worse for them with cheap gas and a shift from small cars.

If I was a dealer, I would not re-up. It doesn't make any sense financially.

This kind of stuff does make me wonder about how long to keep my Abarth. I like it, but the excessive depreciation that a lot of hot hatches seem to be somewhat immune to is kind of annoying, and it seems like FCA is not the most consumer-friendly automaker when there are problems.

If the service department issues are any indication, I think they will slowly die in the US and eventually bow out.

Sad, really, they have the potential to do really well, but just don't seem to care much about the US (or are having issues meeting requirements). The new Spider and sedan have the chance to drive some sales to the Alfa brand, but only time will tell.

Regarding models, MINI seems to still be going along pretty well. Although I'm not too interested in the multiple variations, per se.

It seems like Fiat tried with the 500L and 500X to go after the second most successful MINI model, but they're not great. The 500L is goofy looking and the 500X is really just a more rounded (and less interior volume) than the 500L. But, it doesn't look nearly as goofy.

I think they could do better if they became a more full stack dealership with multiple models. Plus, I think they could give the commercial side a run for it's money with their vans and new truck, but that would take away from Chrysler.....

They had to do the independent dealer thing, though. Fiat's don't really fit with any of the Chrysler brands and would probably just confuse people. Plus, the "studio" idea seemed to be a cheaper way into it. At least they're not forcing a separate Alfa dealership.

-Rob

In reply to einy:

King's is where I bought the Abarth. The last few service trips have been to Sweeney in northern KY. Its not great, but I like their service department more than the one that was at King's.

My guess is that no, they will not survive. Where's the big SUV? CUV? Truck? Full-size sedan? You can't succeed selling cars in the US without a single entry in these categories, IMO.

In reply to rob_lewis:

It truly is Fiat's to lose. It is a nice little car that received some fan fare getting here. Now there is no reason to buy one.

The 500L dwarfs the new 911. The cars feel cheap when a Kia/Hyundai feel much better for the same money.

Then they don't have strong reliability, new models are slow to come and domestic support seems lacking.

I hate to see them go, as I really like the Abarth line. I think the Alfa line will be a hoot if it ever gets here and if it isn't priced out of the market.

Sad.

Flight Service wrote: I think the Alfa line will be a hoot if it ever gets here and if it isn't priced out of the market.

I believe last I heard Alfa was pushed back to mid-2020. Yes, 4 years out. Fiat will wither and die before then without intervention.

I am surprised how much the Abarth's price has dropped. I like that model but wonder....

I thought the Abarth was neat until I drive one...Sorry just didn't liek it. I'm glad it was brought to market though. The new 124 is cool looking and with Mazda doing the mechaicals should be reliable enough, but wil people realize this? The huge FIAT badge on the front looks awful too. The 500L is nasty looking, the 500X is better, but not a sporting MINI Clubman. (or previous Clubman, the new ones too big and the doors are all wrong.)

The new Alfa's are beautiful and really need a chance to shine here, they should hve had these in the showroom 2 years ago. Now who knows if it will happen..

Unfortunately it seems they are on their way down. The last few times I stopped in to the local Fiat standalone showroom it was a ghost town even with a 4C Spider and a Viper ACR on display. The poor quality along with the lack of more interesting models is killing them. While the 124 will help with some image issues they need a redesigned 500 and a Multipla that isn't as ugly to replace the 500L.

Fiat needs to bring other models here that they have in Europe along with Alfa Romeo. If they offered the Punto and Panda here, they probably would have more sales. They need Alfa with the Giulia, Giulietta, and MiTo.

If they don't, 4 versions of the 500 aren't going to cut it.

I was really hoping to see new Alfa sedans by now.

As for the 500s, for as long as they've been building them, they have absolutely no excuses for build quality problems.

If I were a single guy, I'd be all over an Abarth, as a family guy, it just ain't gonna work.

With all those delays I'm beginning to wonder if the other cars can't be made to pass either US emissions or US crash tests without extensive re-engineering.

My local dealer closed a year ago and a Ferrari store moved in. I like window shopping the FF way more than the 500.

since the Dart and 200 are being dropped, maybe more Fiats and Alfa are coming to take thier place? Too slow at this rate though...

Fiat can't and won't survive with out new product. And by that I mean product that people really want/need. At least Mazda got to share some development costs with them to turn out a stellar new Miata. Thanks for that Fiat.

SyntheticBlinkerFluid wrote: If they offered the Punto and Panda here, they probably would have more sales.

You can buy a Panda at your friendly Jeep dealer.

As a guy who carried the torch for Fiat after they bailed last time (Fiat Club America is actually 50% my creation) I've watched their return unfold with interest. Its pretty sad when a high school grad like me can comprehend their marketing plan as a failure before it even started. Copying MINI? Yeah, that'll work. We're seeing the results of that now.

Questionable dealer quality, questionable product quality and indifferent warranty coverage is a repeat of the 1970s. Add to that Fiat's continued blase attitude about parts supply (I see this constantly on the Chrysler side) and history is repeating itself all over again. All they need is a government mandated rust recall/buy-back and they'll have ticked all the boxes.

Fiat's products are nothing like the ones we Fiat-nuts adored back in the 1970s. They no longer make interesting sports cars based on clever sedans. These days they crank out mostly nondescript cars for the masses and the occasional nicely styled glamour car (500). If they think a re-badged Miata is the way to return to their glory days they will be sorely mistaken.

I once read an automotive journalist state that the French and the Italians have never understood the American market (this was in the 1980s). Doesn't look to me like anything has changed.

Holy crap that is a lot of 500s

500, 500c, 500e, 500L, 500x, 500 Abarth.

Really? Are they trying to give the 911 a run for it's money on model variation?

911 Carrera, 911 Carrera S, 911 Carrera Cabriolet, 911 Carrera S Cabriolet, 911 Carrera S Cabriolet, 911 Carrera 4, 911 Carrera 4S, 911 Carrera 4 Cabriolet, 911 Carrera 4S Cabriolet, 911 Targa 4, 911 Targa 4S, 911 Carrera GTS, 911 Carrera GTS Cabriolet, 911 Carrera 4 GTS, 911 Carrera 4 GTS Cabriolet, 911 Targa 4 GTS, 911 Turbo, 911 Turbo S, 911 Turbo Cabriolet, 911 Turbo S Cabriolet, 911 GT3 and 911 GT3 RS. (30,510 911s sold in 2014, that averages to ~1400 of each model.)

What the 82nd told the Germans at Bastone still holds true today....Nuts.

ddavidv wrote: If they think a re-badged Miata is the way to return to their glory days they will be sorely mistaken.

Well, from a quality and performance standpoint, it couldn't hurt.

Flight Service wrote:

ddavidv wrote: If they think a re-badged Miata is the way to return to their glory days they will be sorely mistaken.

Well, from a quality and performance standpoint, it couldn't hurt.

I've not even seen an ND in public, but I felt the NC engine was way too industrial and a bit of a letdown for the car. Reviews I've read on the ND mention a similar trait. A rebodied ND with a 500 Abarth engine? That intrigues me quite a bit!

petegossett wrote:

Flight Service wrote:

ddavidv wrote: If they think a re-badged Miata is the way to return to their glory days they will be sorely mistaken.

Well, from a quality and performance standpoint, it couldn't hurt.

I've not even seen an ND in public, but I felt the NC engine was way too industrial and a bit of a letdown for the car. Reviews I've read on the ND mention a similar trait. A rebodied ND with a 500 Abarth engine? That intrigues me quite a bit!

Hell I have passed 4 in the last month, Silver, White, Red and Black.

But I have also passed a NSX, Maclaren, FD RX7, Ferrari, bunch of Maserati's, Ford GT, 2 Bentley's, a Rolls Royce, a W12 Phaeton and enough Porsches to keep Leipzig busy for a month.

DC is a strange place.

ddavidv wrote:

SyntheticBlinkerFluid wrote: If they offered the Punto and Panda here, they probably would have more sales.

You can buy a Panda at your friendly Jeep dealer.

Well I understand the point you are trying to make, but the Rengade isn't even based off the Panda, it's way bigger. It's also not badged as a Fiat, so it's not going to help the Fiat brand name sales.

Fiat banked on the popularity of the 500 in Europe to happen here in the US. The problem is, they came in at the wrong time and they only brought one car, not everyone wants a city car.

They also didn't push hard enough to sell it as a city car. I have actually have never seen a Fiat store in the city, only the suburbs which isn't exactly the best place to sell a car that fits only two people.

Fiat scores win with customer satisfaction

I keep seeing a link on my Facebook app, this is the closest I could find on the desktop. Apparently customer satisfaction is quite high.

Including this customer. It'll be 2 years exactly the end of this week, and I still love driving this little mini rocket. I still get people asking about it when I park. Fiat's on the Dragon is the 2nd weekend of April, we have over 100 registered/paid and that includes 10 Alfa 4c's this time!

The last time I was at my dealer in Centerville/Dayton for 16k scheduled maintentance they had just remodeled the showroom, probably because they were one of the initial dealers picked to be an Alfa Romeo dealer. And even I'm curious to see the 124 in person, and if they make an Abarth version??

Fiat needs Alfa to come here and knock it out of the park to survive. There's not enough diversity in their vehicle lineup to survive in a stand-alone dealer model. Rumors have been building that Alfa is delaying their US relaunch though, so FIAT may not be able to hold on long enough