Fiat going to sit this one out, or just taking us for fools?

"Klaus Schmoll" (klausschmoll) 09/10/2013 at 16:29 • Filed to: Fiat

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While every other automaker is busy presenting something new in Frankfurt, Fiat is looking like the kid who forgot that presentations were due this week. They have nothing new to present to the public, zero, zilch. Rumours say that this is due to a cunning plan by Marchionne to save the new models for 2015, when the crisis is (hopefully) over, and demand is (hopefully) back to normal or even above.

O.K. not submitting new models to the rebate wars that are going on today in the European market makes some sense, more so if you can miraculously release a plethora of new models as soon as the market gains new strength. But this comes at a cost. They will have to keep their production capacities while losing market shares at the same time. This means losing customers that might never come back. They also have to predict the precise moment demand comes back up just right.

And this is why I don't believe in this grand scheme. Fact is, Fiat is bleeding heavily in Europe right now. Without the blood donations from ChryCo, there might even be a funeral soon. I don't think that they are holding back new products, they just don't have anything ready to present to the public. Otherwise they wouldn't have Lancia and Alfa Romeo hung out to dry like that, or would they? Alfa has a line-up of TWO cars, that both aren't exactly strong sellers. Imagine being an Alfa Romeo dealer right now! Lancia has five cars but their line-up still looks quite comical with it's small city cars, the rebadged Americans, and nothing in between.

If this is all part of a great plan, then Marchionne is either a mad man or a genius, We'll see what's what at the 2015 Frankfurt Motor Show.

HammerheadFistpunch > Klaus Schmoll 09/10/2013 at 16:36

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I haven't heard any rumors of any kind that FIAT has anything new at all, so maybe its true. on a side note, can't wait to see what the panda based Jeep will look like.

Mr. Ontop, No Strokes, No Smokes...Goes Fast. > Klaus Schmoll 09/10/2013 at 16:37

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Marchionne seems to march to the beat of his own drummer. Not sure how Fiat sales are in Europe, but they appear to be pretty good on this side of the pond, at least in California. Anyone else heard anything?

Mikeado > Mr. Ontop, No Strokes, No Smokes...Goes Fast. 09/10/2013 at 16:49

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Fiat being (re-)new and movel in the US might be helping with that. Over in Europe Fiat have been around a long time and they're losing market share by the day, pretty much buoyed solely by the 500 and Panda despite offering other models like the now-outdated Punto and completely forgettable Bravo (Focus "rival" upon which the Lancia Delta is based). Oh, and the Qubo and Doblo, which look like wheelchair vans with cute faces on...

Mikeado > Klaus Schmoll 09/10/2013 at 16:53

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I think Alfa Romeo dealers are probably spending their time dealing with interest in the 4C, and maybe a few are answering people's questions about the upcoming Spider. The Giulia will be their key model, though, so they really need to start getting that finished and getting people looking at it.

Chryslancia is a very sad sight...

If you're right and FIAT themselves are waiting it out, then that's a bold strategy. The thing is, Maserati are getting a huge rise in sales by releasing their new models, and FIAT doing the exact opposite might see the opposite happen to them. You get sales by getting people's attention, and another Punto facelift or TwinAir model just isn't enough any more. The 500 might be the only thing saving them over the next two years...

Klaus Schmoll > Mikeado 09/10/2013 at 17:01

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The 5oo might save them, but they are catering to urban hipster types with this car. People who are quick to jump onto the next big thing. And Fiat hasn't done anything to spice the base 500 up or so since it's debut.

Mikeado > Klaus Schmoll 09/10/2013 at 17:09

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They've capitalised on its success by expanding the sub-brand with the L and upcoming X, just like BMW did with MINI. Unfortunately that means stretching them out like a whore's work lips, but more sales are more sales as far as they're concerned.

Klaus Schmoll > Mr. Ontop, No Strokes, No Smokes...Goes Fast. 09/10/2013 at 17:10

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Their traditonally strongest markets were in southern Europe. Fiat sells cars with a southern well "something", and that brings the strongest market shares in southern European countries. Unfortunately, those are exactly the countries that have been hit hard by the crisis. So selling cars over there is almost impossible right now. Other EU countries that haven't been hit, or are even growing in this crisis, like BeNeLux, Germany, Scandinavia and so on, aren't Fiat's strongest markets.

Klaus Schmoll > Mikeado 09/10/2013 at 17:15

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Verdict is still out if that worked. I haven't seen that many 500Ls out in the wild. Have you?

Mikeado > Klaus Schmoll 09/10/2013 at 17:47

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Actually, no. I've seen ads for it...

Hmm.

The man in the iron mask > Klaus Schmoll 09/10/2013 at 17:59

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i pick the girl, shes cute

Jetboy > Klaus Schmoll 09/11/2013 at 00:24

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Fiat has decided to rebrand many places. In my market all their offerings will be called 500.

They have announced that they want to leave Italy.

A company in this state of transition is not so focused on a tarty conference.

oyumurtaci > Klaus Schmoll 09/11/2013 at 03:41

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I can't really speak for the rest of Europe, but Fiat has always been strong in the Turkish market. That being said, the state of affairs here are a little different:

First things first, the Punto platform is up for renewal in 2014, and many of the midrange product line in the empire will be updated with it. New Punto, new Bravo, probably new Giulia and Delta.

Their commercial products like the Doblo, Ducato, Fiorino/Qubo still sell well because they're really cheap compared to the alternatives from, say, Ford and the Transit/Tourneo line. The 1.3 Multijet engine also puts them in a very cheap tax bracket for countries with displacement-based tax, which is another win for fleet sales.

The 500 never sold too well here, because more expensive than in other countries, so the fashion accessory that it is didn't work out for people with something close to disposable income. That being said, the 500L is selling almost as well as the Ford Fiesta here because it's considered to be better looking and more 'designer' than the equivalent MPVs from Renault, Ford etc. despite being as expensive as, say, a MINI Countryman, which brings me to my next point:

At this point, the aging Punto is the only car in the lineup that isn't priced in a 'premium' segment. They've managed to price everything new they make (Panda, 500 and derivatives) into a higher price bracket, supposedly trying to reinvent the brand as a more 'premium' product. With Alfa and Lancia in the range, this is a completely useless strategy. In the current global climate, competing with 'lower-beat' brands like Kia and Hyundai (who have also moved up in brand image and product quality) makes more sense for a volume manufacturer like Fiat, as opposed to trying to place the new Punto up against, say, the VW lineup (which I am betting they will do).

As a result, I think the main drive behind Fiat not having anything to grab attention is that in the middle of shifting from being el-cheapo chic transportation to "premium" chic transportation, they are trying to keep attention away from the fact that their products are nice and shiny but cost just as much as more premium rivals, all while being based on the Small Car Platform that debuted with the 2003 Panda.

Wonk Unit > Klaus Schmoll 09/11/2013 at 10:44

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Does this mean i should buy a 500 Abarth to save Fiat? I think i should buy a 500 Abarth, so i can save Fiat. Ok I'm going to buy a 500 Abarth, its so i can save Fiat. I'm such a nice guy.