DETROIT (AP) — Chrysler on Monday told 400 dealers about its plans to bring the Fiat brand back to the U.S. after a 30-year absence, starting with the Fiat 500 minicar later this year.
Fiat-run Chrysler Group hopes the tiny Italian car can boost its lackluster sales when it comes to the U.S. in December. Chrysler wants the bulb-shaped 500 to become a strong contender in the small-car market, where it has struggled for years.

The car will be sold by about 165 Chrysler Group dealers, mainly in big city areas. Chrysler, Dodge and Jeep dealers who gathered in Detroit on Monday are being asked to build separate showrooms and have separate sales and service staffs for the cars.

Dealers have until Sept. 22 to apply for Fiat franchises. Chrysler said it will select its dealers in the fourth quarter.

Chrysler wants to create a distinctive European aura for the 500. It will come in standard, convertible, high-performance and electric versions. Dealers also saw some future Fiat models, but Chrysler wouldn't comment on what they saw.

"Our dealers will be able to interact with a group of individuals that are not part of their current customer base," said Laura Soave, a former Ford Motor and Volkswagen executive who is now head of the Fiat brand in North America. "These are individuals interested in Italian automotive design coupled with fuel efficient technology."

Fiat last sold cars in the U.S. in 1983, but pulled out of the country after a string of quality problems that gave it the nickname "Fix it Again Tony." On one model, warranty repair costs wiped out any profits in the U.S.

Until recently, Fiat had a similar reputation in Europe, but industry analysts say the company's new models are vastly improved.

The Fiat 500 will be built in Toluca, Mexico.

 

Oh god...

 

I had some stronger words in mind....can't wait to see the "performance version"......maybe with a twin gerbil turbo engine and a coffee can muffler!!!

Doesn't Chrysler realize we don't want a "Yugo II"???

Dusty

 

I knew this was coming sooner or later, but I was hoping it would be MUCH later... So far I like what Fiat has done with Chrysler (for the most part). But this is going to be the death of them I fear... I can hear it now: "Visit your local Chysler, Dodge, Ram, Jeep, and Fiat dealer for current discounts and incentives..."

Who's gonna want to buy that thing? It's just going to be more bad publicity for Chrysler dealers...

 

http://fiat500usa.blogspot.com/2010/...orsepower.html

The 500 Abarth is a cool car and I really think the angst and hand-wringing is premature. I'll buy a 500, after I get the Ram or Charger. Chrysler needs small, efficient cars to compete with Toyota, Hyundai, Nissan, etc. FIAT needs full size cars and SUV's to compete with MercedesSh*t and Bumf*cked Motor Works. I really believe this will end up all right and you guys might wait until you've seen and driven the 500 before deriding it as the end of Dodge. The guys at Top Gear who called the Challenger one of the 3 best sporty cars in the world, also love the 500.

 

I agree that we need them, but I wouldn't buy any of them.

 

This situation rings a quote to mind. "No, you are not making the same mistakes. You are just making new and more mistakes." (Jurassic Park) Fiat so far is doing some things better. They see that Chrysler adds value beyond forcing them to buy their trash and use it in their models as Daimler did...so far... The problem is they still take an approach of instead of developing the car themselves, they still want to contract it out. The 8-speed ZF transmission deal is evidence of that. Chrysler has been able to build a competitive 6-speed transmissions on its own (62TE and 68RFE) without duplicating the mistakes of the past in build quality, they do not need to get stuck in another Daimler and JATCO deal where they are stuck using an inferior design that they have to pay huge royalties for.

Selling Fiats at a Chrysler dealer is possibly more damaging than badge engineering. Here we aren't going to fake the fact that the company has been taken over. Now we are going to rub your nose in the fact that the we control it. Instead of having arrogant commercials stating "Ze best of German und American engineering," we are going to have it posted everywhere. I can't say how the big dealers think about it, but I know the small ones are dreading this. The one I go to, who is owned by an aging friendly coupe that want to retire but can't afford to, is concerned because he said he will have to invest I think he said $10K in tools for cars that he said will not sell well, but he has no choice but to buy them if he wants to remain.

What Fiat needs to learn is how to make a synergy between the companies. Chrysler's glory days before the attack of the Vampire named Daimler was able to find synergy in the creation of models like the Neon with AMC and their short term ownership of Lamborghini, they were able to develop things together sharing talent. Badge engineering does not work. Just donating a platform (then expecting royalties like Daimler did) does not work because Chrysler fans like myself want a Chrysler not another brands car. If I did, I would buy one. Ford has been able to make it work by co-development, making a true joint venture, and even then it doesn't succeed as well as the pure Ford models (ex. Volvo based Taurus vs. Mustang).

The dropping of the Viper is a huge mistake. The Viper's formula might have needed to be updated a bit (add an OPTIONAL auto, keep a manual, and give the baby their bottle and update the interior). The car was winning contests, it was the defining American Supercar that forced GM to make the Corvette competitive in the international arena. They have no idea what potential they killed by not utilizing a slightly detuned version in very limited versions of the 300 and Challenger.

To sum it all up: Chrysler needs to develop its own compact car with their OWN engine (not a Hyundai, Mitsubishi, Daimler, or Fiat engine). Sharing technology is okay, sharing engineers in development is okay, but this does not work.

 

Avenger
Seabring
Jeep Patriot
Jeep Compass
Jeep Liberty

Three of jeeps products compete with Cherokie and the Wrangler, lower the cost of the wrangler and the NEW grand cherokie, dump the othier three Jeep models. Fiat can't help jeeps all ready redundant line up.

A mid size wagon with awd and a diesel engine with a man. transmisson, or 6speed automatic at a compact price, that's want Dodge needs, building two versions of a mini van is silly.

Hyundia may be after dodge for a Ram version of a Hemi truck, Hyundia by far has a better compact, mid size cars than Dodge.

 

"if our friends in the US knew what we Europeans know about Fiat’s customer service, then they’d realise that Chrysler may be in for a rough ride.
Fiat consistently comes near the bottom for customer service in the driver surveys over here. Dealers that don’t care, problems that take forever to fix, and cars that are woefully unreliable. In its favour the 500 seems to be changing perception and doing well.
Unfortunately i wouldnt spend money on this Italian brand however......"

This is a quote from the "Left Lane" website, FYI.

Dusty

 

Don't forget the Caliber in that mix, also the Journey. They need to abandon that Mitsubishi platform. There is still a case for the Liberty, they just need to get away from the attempted box on wheels Cherokee-esk styling and return it to its original look and give it a decent interior and update the powertrain (it was so good the first time we decided "if it isn't broken (I beg to differ) don't fix it." That's the statement that defines how you become uncompetitive and lose the market). If they do that, it'll do fine. FWD and Jeep do not belong.

If Chrysler has enough creative freedom and a budget to match, they may surprise everyone. I doubt Hyundai has any interest in buying another car company. The evidence is out there that buying another car company rarely helps you become more competitive in the current market. It makes you less nimble, have more overlap, makes fans angry, and you come out as the enemy. It is better to build your way up slowly.