Fiat conquers US city drivers with tiny 500

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DETROIT: Six months after its launch in the United States, the mini Fiat 500 is winning over drivers in the country's big cities who are drawn to the car for its stylish look and the nostalgia factor.

While analysts say it may be too soon to declare the Italian carmaker's return to the US market after a 27-year absence a total success, they will say that sales are definitely promising.

Fiat has sold more than 11,000 units since March, mainly in major cities in California and on the US east coast. Nearly 3,900 cars have also been sold in Canada.


"It started out a little slow," said Brandi Schaffels of specialised auto website truecar.com.

"But in the last two months, they sold over 3,000 units and Fiat is very proud of the fact they are already matching the sales of the MINI Cooper," she said, referring to another trendy model that attracts a similar clientele.

"As an LA driver, I see Fiat on the road every day now," she said. "It is fun, it is sporty, it is stylish," and Americans now have "a much more open mind for the really small cars."

To lure American car buyers, Fiat made a few tweaks to the famed "Cinquecento" - it is offering a more sporty silhouette, armrests, a console with cup-holders and an automatic six-speed transmission.

The company's initial goal was to sell 50,000 vehicles a year in North America, but it has taken time for the dealer network to settle into place.

Fiat, which took over management of Chrysler in 2009, is relying on the US automaker's dealerships to help boost sales.

But, as Fiat spokesman Ariel Gavilan points out, "Fiat customers are not the same as those who buy a Jeep or a Ram truck."

Dealers must also guarantee a separate showroom, which is not always easy.

"It takes time to build a new facility," he said, explaining that the winter was difficult, citing "problems with permissions to build" the new showrooms.

For now, there are only 102 Fiat dealers nationwide. By year's end, that number will jump to 130.

Rebecca Lindland, an analyst for IHS Automotive who herself owns a 500, said a weak market did not do Fiat any favours.

"They could sell more," said Lindland. "You have a lot of people that are really intrigued."

The price - US$15,500 (RM49,422) for the basic model as compared with US$19,500 (RM62,176) for the MINI Cooper - and continued high gasoline prices should work to Fiat's advantage.

Bill Visnick, an analyst for edmund.com, says the Italian automaker must now maintain monthly sales of at least 3,000 units, which would be a "good performance for a vehicle of that nature in this country."

Fiat is competing with cars that have better name recognition and more established distribution networks, such as Nissan's Versa (8,566 units sold in August), the Ford Fiesta (5,833 sold in August) and the Hyundai Accent (5,289).