Fiat Chrysler Sells 50,000 Fiat 500 units annually in US

Fiat Chrysler Merger CEO said they plan to sell around 50,000 Fiat 500 units annually in US. Marchionne also said that he hopes all customers topersonalize their units, in order to raise the price.

Sergio Marchione hopes to transform Fiat 500 in “the new Mini Cooper” of the United States market. More precisely, he wants the make the charismatic Italiancity model a sales champion in USA, with hopes to sell over 50,000 units annually. Fiat – Chrysler Merger have chosen 130 dealerships for Fiat 500 in US and 58 in Canada, and the low starting price of 500 will be used as a marketing tool. The Fiat officials wants to persuade their customers to customize their cars, this way the price which starts at $16,000 to reach this way $20,000, the extra $4,000 being payed for accessories, rims, body colors or trims.

Lately, the Americans have been attracted by smaller, eco models. In contrast with the traditional muscle cars, the USA market have consumed models like Volkswagen 1300 (Beetle), Renault Dauphine, Yugo (model copied after a Fiat) , Smart and Mini. These models were sold well when the petrol price was high, but Fiat – Chrysler Merger have not boasted about the Fiat 500′s efficiency.

Just like for Mini Cooper, the guys of Fiat has to promote 500 in an indite way in order to stand out on the North American market. While the Brits of Mini have worked with Cunning Stunts of Great Britain, the guys of Fiat have hired a less famous advertising company in Michigan. As a comparison, Mini have advertised Cooper in USA by putting it in a Ford Expedition and driving it around in the big cities.

The first Fiat 500 unit Image Gallery

The first Fiat 500 unit officially imported to Canada was sold in a found raise auction.

The first Fiat 500 Numero Uno brought in Canada was sold in an auction for not less than $85,000. The model has no extra features when compared to the units sold in Europe, but the money will go for charity purposes. We all expected the money to go to a foundation that takes care of children or young people, but no, the money were sent to Villa Charities foundation, which takes care of old Italian immigrants of Canada.

In Canada, the Fiat-Chrysler Alliance uses the Chrysler dealerships to sell the Fiat 500model. Cinquecento is the return of the Fiat brand on the US and Canada markets, and its public debut on the North American continent will tale place at Los Angeles Auto Show, in November. In the first phase, the Italians will only sell the 1.4 MultiAir version of Fiat 500on the North American market.

Although the options and equipment package is called Numero Uno, you will find no different features from what the European Fiat dealerships offer there. The name of the options package was changed in order to attract the interest of the potential customers, giving the car an Italian allure. 2011 will bring the debut of the convertible version of Fiat 500 on the North American continent.

FIAT PLAN THEIR OWN CHRYSLER IN EUROP

Fiat plans to introduce a European version of the Chrysler 200. But the model will be sold by Lancia, with the Fiat logo on the front grille.

It looks like Fiat is not sticking to their initial plans, saying they will sell theChrysler models under the name of Lancia. Unofficial sources say that the NewChrysler 200C will be sold on the Old Continent under the Fiat logo and not Lancia, as was anticipated. The reason is relatively simple, but a fair one: the American brand is not able to match the quality and luxury level of Lancia, a brand seen by many as a premium competitor.

Sebring’s successor in US would make its debut on the European market replacing Croma, from which will borrow some design elements. The Fiat sedan will be different from its North American brother because of the aesthetic changes of the front, which could include new headlights, and revised front grille and the Fiat logo.

But there are some major differences under the hood as well. The European public will receive diesel engines, unlike the American customers. The MultiJet units will be there too, with powers between 120 and 170 HP, designed to replace the American gasoline2.4-literengine of 173 HP and 3.6-liter of 283 HP engines.

Thew new sedan will be produced in the Chrysler plant in Michigan, and will be sold on the European market at a price around 20,000 euros (about $26,000).

The Italians might also bring to Europe a local version of Dodge Journey, easily revised last month on the US market. The model enjoyed good reviews in Europe, the pre-facelift version, but was withdrawn from the market after the Fiat-Chrysler alliance was reorganized.

FIAT WILL PRODUCE 350 UNITS IN NORTH AMERICA

Fiat will reorganize its production in the next four years, planning to eliminate about 5.000 jobs in Italy and move a production part in the U.S. market.

The Italians from Fiat could produce up to 350.000 units, Lancia (under theChrysler seal) and Alfa Romeo in North America, available exclusively for this market. Though the Italians are expanding in the North America market through the alliance that they made with Chrysler, they will discharge almost 5.000 peoples in Italy as part of their strategic plan for 2010-2014.

Three factories in Italy will suffer after this strike of personnel, which represents 15% of the amount of employees that Fiat has in its manufactories. The number of models will be reduced from 12 to 8, and the production in Italy will be increased by 50%, achieving an amount of 900.000 units. Therefore, the 25.000 employees still in production will make 50 percent more cars in the next 4 years.

The Fiat Group has 80.000 employees in Italy and 190.000 more at a global level. The Mirafiori factory in Torino will be the most affected by this comedown, to be lost among 2.000 and 2.500 jobs, while the Termini Imerese in Sicilia will loose about 1.500 jobs in 2011, when closing. The reason for reducing the employees number in Italy and moving out the production in the U.S.A., rests in the jetting up of the Fiat Group and the disposal of  the taxes applied on the imported products on the U.S. market.