When the Fiat Group – Chrysler LLC alliance first announced plans to bring the Fiat 500 to the U.S. market, it had hoped to sell around 50,000 cars in the first year –a highly optimistic number given that the BMW Group sold 47,050 MINIs of which 22,922 were hardtop hatchbacks in the U.S. through October this year.
In the same period, Fiat delivered 15,826 examples of its retro styled city car. A recent article on CNN's Fortune magazine states that while "it may be too early to call the 500 a flop, a lackluster start has cast a shadow over CEO Sergio Marchionne's grand plans to expand in the U.S." But if you take a closer look at what the two brands currently have to offer in the States, it's somewhat unfair to compare the 500s first year of sales with the entire MINI portfolio.
The BMW Group-owned brand has a lineup that currently consists of six models including the hatchback, convertible, Clubman, Countryman crossover, Coupe and the John Cooper Works, whereas the Fiat 500 is offered in two basic flavors, the tin-top hatchback and the partially soft-top 500C.
That will soon change with the introduction of the manlier/sportier 500 Abarth that is scheduled to debut at the L.A. Auto Show this month.
Moreover, one should also take into consideration the fact that Fiat re-entered the U.S. market after abandoning it close to 30 years ago (and with all the baggage that went with it) with a product that is not as new as some would like to believe since the 500 has been on sale in Europe since 2007.
Laura Soave, head of the Fiat brand in North America, has said that another reason for coming short of the initial 50,000 sales target this year are the delays in opening new stores. Up until August, Fiat had opened 100 dealerships in the States, including about 30 in July. The company's goal is to have 130 by the end of 2011.
The way we see it, the problem lies more with Fiat's overly optimistic targets (something all too common in the world of the Fiat Group) than the sales themselves.
What we will agree with the article on Fortune Magazine is that Fiat's mediocre marketing efforts leave a lot to be desired. The commercials featuring Jennifer Lopez are not only more focused on the singer than the car itself, but fail to create a connection between the two while also alienating male buyers.
You can chip in your thoughts in the comments section below.
By John Halas
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