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Car Guy
Fiat’s Got Troubles
But this time they can’t be blamed on the car.
History may be about to repeat itself — for Fiat.
The Italian automaker’s first U.S. model since 1987 is apparently a flop… so far, at least.
According to the Detroit News and DailyTech, only about 12,000 Fiat 500s have been sold to date — which is barely a fourth of the 50,000 units annually projected by Fiat management.
But this time, it’s probably not the car that’s the problem.
Small, fuel-efficient — and fun — cars are very much in. Minis are moving, despite some significant early teething problems with quality control. The Mazda3 is popular, too, and it’s only slightly larger than the 500.
The difference?
The dealers.
In Fiat’s case, there aren’t any. Or rather, there are far too few.
In Virginia, for instance, there are only three Fiat stores — and they’re all clustered in Northern Virginia within 50 miles of downtown Washington, D.C. Two of them — the Vienna and Alexandria stores — are within 20 miles of each other.
This means that anyone potentially interested in a 500 who doesn’t actually live within the D.C. Beltway is very likely going to cross the 500 off their list simply because it’s too much of a hassle to go look at one. Let alone face the prospect, down the road, of having to do overnight (or at least, all-day) drives to a dealership that’s 100, 150 or 200 miles from home.
I did a little checking and it’s easier to find a Porsche dealer in my part of Virginia than it is to find a Fiat store. There’s one here in Roanoke — 200 miles away from Northern Virginia. The closest Fiat store to me is in Richmond — a three hour drive (one way) away.
Now, I really like the 500. In fact, I like it better than the Mini, because it’s just as cute and equally fun to drive but costs $4,000 less ($15,00 to start vs. $19,500). It also gets 2-3 MPG better gas mileage than the Mini. For the money, it’s hard to beat. And money notwithstanding, the 500 is a neat little car; a low-cost runabout that’s highway-viable (unlike the idiotic SmartCar two-seater) but not a depressing little outhouse, either.
There’s a lot of aftermarket support for these cars and Fiat sells a hopped-up Abarth version that I’d be very interested in.
But I would not buy one because of the dealer scarcity-remoteness issue.
And it’s madness for Fiat management to believe anyone other than the most dedicated, gotta-have-this-car people will, either.
About the Author
Eric Peters is an automotive columnist and author of Automotive Atrocities: The Cars You Love to Hate (Motor Books International) and a new book, Road Hogs.
Letter to the Editor View all comments (46) | Leave a comment
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Richard Baker| 1.3.12 @ 6:20AM
Just went to Fiat's website and in Florida where I live there are 2 dealerships from Orlando Northward. The lack of dealerships is going to kill Fiat unless they add more or use the existing Chrysler network. Why they don't use the Chrysler dealerships is beyond me. Dumb marketing, I suppose.
c. j. acworth| 1.3.12 @ 6:21AM
Two quick questions, Mr. Peters.
1. In addition to getting 2-3 extra mpg over the Mini, does it do it on regular gas? I seem to remember that the Mini needs premium, or is that not correct?
2. I don't keep up with auto sales figures much, so how is Chrysler/Fiat doing in general? Remember that they are Bailout-tainted, perhaps some are avoiding the brand for that reason.
Barbara Streisand| 1.3.12 @ 10:18AM
Not only that, the Fiat 500 has to compete with the Toyota Yaris, which is slightly larger, costs the same, but gets 7 more miles to the gallon, on regular gas, and which is, after all, a Toyota, not a Fiat.
oldfart| 1.3.12 @ 6:28AM
Dealers that do not donate to the Democratic Party do not survive if the are connected to GM or Chrysler.
Maxwell| 1.3.12 @ 8:06AM
oldfart, I just have to add my two cents worth. There are two Chrysler dealers in the Princeton area, my dealer Belle Mead Garage and the Princeton dealer. Belle Mead Garage was opened in 1928 and my family has been doing business with them for over 50 years. They most definately lean towards my way of thinking shal we say. The Princeton dealership, well, they are in Princeton, what can I say. You know which one was closed, yup, Belle Mead Garage.
Princeton is 'infested' with Mini Coopers but will FIAT supply a dealer there? Good thing I'm not in charge.
Baloney Guy| 1.3.12 @ 7:10AM
The car is small and dangerous. One whack from an unlicensed illlegal immigrant and welcome to Stateville.
Robert Bové| 1.3.12 @ 7:48AM
You must mean the Mazda 2. The 3 is classified as a compact, not as a sub-compact.
John - TMF| 1.3.12 @ 7:50AM
From a friend who works in a big area Chrysler dealership... That is not allowed by the corporation to sell FIAT.
FIAT won't sell cars or award dealerships if certain facility (High tone fancy) and volume parameters (don't want the FIATs directly competing with the Dodges now...) aren't met. My friend wasn't specific, but she did say that the "rules" were problematic since they even had service department limitations.
This is a typical - "Forcing the Market" sort of limit that dooms any manufacturer with a big image ego. They don't want to sell unless their outlets fit a particular self-important image.
So FIAT would rather sell a Walmart car at Wegmans... and then wonder why the proletariat that is their market don't show up.
Dumb Euros...
r.TMF
byGeorge| 1.3.12 @ 8:04AM
Don't pick on the Smart car. Pick on your own size. My wife loves hers, and I get a small bang out of it when she lets me drive it. I would buy a 500 if it wasn't a Chrobama Motors product.
tdiinva| 1.4.12 @ 10:42AM
Smart is stupid. For the same or lower price you can get a Toyota Yaris, Nissan Versa or Honda FiT. These cars get about the same gas mileage on regular versus premium for the Smart. Plus you get a back seat and some storage space. So unless you live in Manhattan buying a Smart Car classes you as a less then smart person.
VonMisesJr| 1.3.12 @ 8:21AM
Laura Soave appears to be a thirty something Brand Manager that spent an unidentified stint as GM. Her LinkedIn and other profiles on the internet are vague.
So it seems safe to assume that Laura is another government neophite like our president who is immature, inexperienced and little is known of their past. This is what government investment looks like: foolish as best, and more likely corrupt.
Frank Drackman | 1.3.12 @ 8:34AM
F-ix
I-t
A-gain
T-ony
Moe Blotz| 1.3.12 @ 9:07AM
Drag racers replaced the anemic four cylinder engine in the old Fiat Topolino with large American V-8 engines. With a little chassis reconstruction and drive line improvement, the Tipo would fly dung the 1320 (especially after tipping the can) and looked pretty good as well. Some enterprising shade tree mechanics may do something similar with pressurisation on the induction side before the brand disappears again.
Frank Drackman | 1.3.12 @ 9:38AM
, Why not skip the Middleman? I've got a 95' Camaro that actually came with a large American V-8. Gets 26 on the Interstate, with the 6 speed and 3.42 rear end your only turnin 2000 rpm at 80mph..
And with that primitive 90's technology, what the hell, the 95 Chevy 350 was basically just a bored and stroked 55' Chevy, with fuel injection, it only had 285 HP when NEW.
Heck, the new V-6 Camaros make more than that..
Frank
Moe Blotz| 1.4.12 @ 4:43AM
Fiat also owns a sports car company that makes go-fast knee high red machines powered by high tuned v-8 and v-12 engines. The emblem on the bonnet is a prancing horse. Do you know the name?
Frank Drackman | 1.4.12 @ 8:33AM
Duh, I've seen "Miami Vice"
and what kind of heterosexual car has a "Bonnet"?
or a "Prancing" homo Horse?
and good luck finding a fuel pump when it goes out on I-10 just south of Milton Florida.
Which happened with my Camaro, and I was literally a Stone's throw from a Chevy Dealership, and when I found out they had to drop the tank, drain the whole 1/2 gallon of gas I had, cause I was tryin to get to the Alabama state line where Gas was 2 cents a gallon cheaper, and charged me like $600 labor to put in a #$%^&* pump you can get from JC Whitey for $49, where was I?
Oh yeah, stone throwing.
Well I didn't throw any, but I sure as hell kicked a few, and if they just happened to scratch up a few Corvettes fenders, thats there problem...
Frank
Louis Jenkins| 1.3.12 @ 8:45AM
The last time I came in contact with a Fiat was in 1982, a friend of mine, who moved to the Cleveland area, and with in one year the car had become quickly rusted over-all of it. Yes, I know, lots of salt on the roads, but one year? I'll never own a Fiat, sounds like a digestive problem to me.
Dave | 1.3.12 @ 9:25AM
Maybe it's just my inner chicken at work, but I'm an old schooler who, from a safety standpoint, prefers a little more "meat" around the frame. While Fiat and other mini-wheels get the advertised "great gas mileage", in an actual highway crash test with a squirrel, my money's on the rat.
But that's just me.
Paul J| 1.3.12 @ 9:33AM
I once owned a Fiat....The dashboard orchestrated a harmonic nuance over every bump, the electric seemed to be like an ocean tide, always going out, plastic parts seemed to dance their way all over the floorboards and engine area. Best of all was the pistonies crashing into the valvonies when the GM air pump self destructed causing the rubber band to break...You will have to have a gun and a mask for me to buy another......
PaulyD| 1.3.12 @ 10:48AM
You no like-a da car? Hey, what's a matta you?
Mark G| 1.3.12 @ 10:52AM
"......causing the rubber band to break..."
bandbonie to break...
Tony Stromboli| 1.3.12 @ 4:00PM
Maggio mille capre masticano sulle vostre gomme!
Laurette Latini| 1.5.12 @ 3:56PM
You're not funny, you're not Italian, and I suggest you never again use computer translators. Maggio is a noun and a nonth, not a verb, you twit. As for Fiats, obviously they sent the worst to America, since it's well known that Americans don't go for quality.
Laurette Latini| 1.5.12 @ 3:57PM
You're not funny, you're not Italian, and I suggest you never again use computer translators. Maggio is a noun and a nonth, not a verb, you twit. As for Fiats, obviously they sent the worst to America, since it's well known that Americans don't go for quality.
JimH| 1.3.12 @ 9:59AM
The care may be an improvement on the old Fix It Again Tony, but this models trunk is smaller than that of it's spokesperson, J-Lo.
Tiddly| 1.3.12 @ 10:47AM
I had a Fiat 128 in the 70s. Still have a bad taste in my mouth. Never again.
Frank Drackman | 1.3.12 @ 11:08AM
here's my funny Fiat story,
OK it was an 84'Crown Vic, its still funny.
The Vickie was my "Winter Car" during my exile in the Artic-esque Cold Wasteland of Maryland.
See, they put salt on the roads, so I didn't want to drive my "Good" car, the 96 Caprice 9c1 Police Interceptor.
So from Dec-March I drove the Vic, then left it from April-November in the factory parking lot.
Well one August, they said everyone had to move there cars, cause they were painting new lines, so I went out to put a new used battery, and as soon as I popped the hood.
I don't know why the Wasps built there nest in the Airfilter, probably cause it was dark, well protected from the elements,...
and that was about the fastest I've ever ran 90 feet, which was as close as I could park ...
I let em tow her..
Frank
Joe R| 1.3.12 @ 11:12AM
The sides of the roads in Italy are littered with junked Fiats. They're pieces of shit. That's why they never sold in the US originally and they won't sell today.
Laurette Latini| 1.5.12 @ 4:02PM
I take it that you have once been to Italy, for about 4 minutes switching planes on your way to Bangkok or the like. The roads in Italy are certainly full of Fiat dealers and Fiat repairmen, but you seem not to notice that this makes the very point that the article's author actually intended.
DG in GA| 1.3.12 @ 11:58AM
I believe there are several problems, but the main one is image. FIAT, as the writer said, has the image problem among anyone over 40 of Fix It Again Tony. Then there is the lack of dealerships. Frankly, if I were trying to launch a new car brand, I would not do it at a Chrysler dealership. I'm a former Chrysler owner who vowed "Never again." They deserved to go broke back in the 70's but the government rescued them. Then Obama rescued them again 30 years later. Enough! Chrysler richly deserves to die to make room for a car company that builds a quality product. I thought the marriage of Chrysler and Fiat was simply appropriate. Both companies build lousy cars.
When I first saw the J-Lo commercials I thought the car was appealing. Then I read about how it wasn't even J-Lo driving the car around the Bronx, and that the brand new demo car in the commercials actually broke down during filming. My son and his girlfriend were intrigued enough to take one for a test drive. They said it was a piece of crap. So I guess FIAT will continue to have a well-deserved image problem in the U.S.
Dr. X| 1.3.12 @ 12:15PM
Possibly the new Fiats are better than the old ones, but I still have zero interest in them (nor the Mini used in the article for comparative purposes for that matter). Maybe they're fine for some gay design studio owner in San Francisco who commutes six blocks, but not for me.
I drove cross-country a couple of years ago in a 2010 Ford Focus. The Focus is a fine compact car, but just barely adequate for a cross-country drive. If I had to do it all over again I'd rather do it in a Lincoln -- and that crappy little Fiat makes the Focus look like a Lincoln Continental by comparison.
I resent governments on both sides of the Atlantic jointly owning a car company and trying to force me drive a little piece of junk (while the Chinese oligarchs are buying big luxury cars as fast as they can).
When the government decides what it thinks you need to drive, you invariably end up with a Trabant or a Yugo while the government officials get limousines.
I'll start thinking about driving a Fiat 500 the day Obama gives up Air Force One and his armored limo and starts making cross-country drives in the back seat of one along with his Secret Service detail.
Screw Fiat. Screw the government. Screw Obama.
Laurette Latini| 1.5.12 @ 3:59PM
Fiat is not government owned. It is owned by the Agnelli family, currently headed by the American Alan Elkann.
Bill| 1.3.12 @ 1:05PM
I'd like to give Fiat a chhance, the Fix it Again Tony label as far as I'm concerned, didn't apply to me. Many years ago (early 70's) I owned a Fiat 1300 sedan. It was tiny and took some getting used to but it got great mileage and I put 140 K miles on it. Very few problems. I like large sedans now , I don't have the Tiny car syndrome. I have a Ford 500 same number but a lot bigger :-). At any rate the Fiat did youman service for me. If their quality in larger sadans was as good as what I drove years ago, I'd get another one.
cicero| 1.3.12 @ 1:09PM
Over a 6 year period, ending in 2010, I was able to lease a Jaguar on the first turn. I leased the cars (2 of them) coming off a 3 year lease. Both were the XJ8 models. The lease payments were less than for Lincoln or a Cadillac. I would routinely get 35 to36 mpg on the highway. This had to be the best kept secret in automotive history. The cars were great. Unfortunately, after the second lease ran out, Jag would only agree to sell me a 3 year old off lease vehicle. While the deal was still good, the car did not come with the full warranty, free oil change/maintenance, and other goodies. As maintenance on the Jags, while not overly frequent, were expensive, I passed. I leased a Licoln MKZ instead, for less than I could lease a Ford Taurus (the standard, not the Eco-Boost, which was much more expensive). And, I get all the free oil changes/maintenance reqjuired.
As for the ultra small models, they may be fun for short hops, or for a while. Over the long haul, or when you have to drive more than 15000 miles per year, they, and you, don't hold up so well.
Murgatroyd | 1.3.12 @ 1:19PM
My father had a Fiat Strada when I was a kid in the '80s. It was an unreliable piece of junk that started going rusty when it was about three years old. The 500 sells well in Europe, though, and they plan to lauch an MPV version within the next couple of years. Personally, I'm growing weary of trendy retro "look at me" cars like Minis, Beetles, etc. Do we really need the VW camper back? How about some attention-grabbing contemporary design for a change?
Giovanni Ravelli| 1.3.12 @ 2:43PM
Eric, at least you have a Moto Guzzi dealership in nearby Christiansburg. I'll take that over a Fiat any day!
SouthernGent | 1.3.12 @ 3:14PM
My 3rd car was a 1977 Fiat 128. This was 1984 until it died in Moulton, Alabama about halfway between Florence and Birmingham in early 1985 while I was in college. During the last 6 months of its life I literally had to park with the nose pointing downhill so that for the 75% of the time that it would not turn over I could fairly easily get it going by popping the clutch. Was quite the date car, as you can imagine. I said "Never more" as I watched it fade away in my girlfriend's Monza (thank goodness she was with me on that trip). Now, fast forward nearly 30 years. I went to the local Fiat dealer to look at a used Hyundai Genesis. While waiting I sat in a couple and I must admit, I was impressed. If I'd been in the market for a sub-compact I'd have jumped on it. This is not the Fiat I once knew. I wish them well but am dubious unless gas jumps to $5.
The Bruce| 1.3.12 @ 9:13PM
I can't decide what's crappier -- a Fiat or a Fiat that might have Mopar parts in it.
Tiddly| 1.3.12 @ 9:28PM
My wife and I did a lot of downhill-pointing and clutch-popping with our Fiat 128 too. It was probably pushed as much as it was driven, and push-started many times. Any moisture on the road would also cause the engine to die--you couldn't drive it on a rainy day. The last straw was when a big puff of smoke came out from under the dashboard one day while my wife was driving it. The smoke blinded her and she ran up over a curb and up onto a sidewalk before she could get it stopped. She wouldn't even get it it after that. We had a hard time selling it. Everybody seemed to know about Fix-It-Again-Tony.
Chris| 1.3.12 @ 11:24PM
My best friend's first car in high school (~1977) was a Fiat 128sp (sport coupe) that we were always working on. My 1st car was a 1969 MGB with a seized engine that I always was working on. I've owed or driven several Fiats (74' 124 spider (street & F Production in SCCA racing), a 1979 131 Mirafiori along with several other models) We modified the Fiats with parts bought from Bayless Fiat Lancia World in Georgia, along with with an endless supply of donor cars from the local junkyards and modifying parts in the machine shop @ his Dad's factory.
The mechanical parts from the junk yard were in good shape, BUT the 2 or 3 year old cars were always rusted out.
A small fender bender would bend the car so bad that the doors would be jammed & the roof would be warped so that the insurance company would total the car.
We benefited.
It was fun back then, we were young, had time our hands and we had little sports cars that couldn't accelerate, didn't go very fast in a straight line, but we could go through the curves & corners faster than anyone else could! We could scare our Ford, Dodge, GM owning friends by making turns that were impossible in their cars.
Fiat had very few dealers in the late 70's (maybe 2 or 3 in Ohio). It sounds like Fiat didn't learn it's lesson the 1st time, and now Obama gives Chrysler to them!! Election day 2012 cannot get here soon enough.
WSK| 1.5.12 @ 1:03PM
Sorry to disagree with you , nut the Fiat is butt ugly. It's only practical use is in an urban environment.
Laurette Latini| 1.5.12 @ 4:06PM
Fiat triumphed in Italy and succeded elsewhere in Europe by having a massive network of dealer and repairmen. It's simply practical to own one because you can get it seen to competently anywhere. So I am surprised at Mr.Peters' report, though what he says makes plenty of sense, because it completely contradicts the corporate culture of the company as Italians know it. It sounds to me as if the current CEO, Marchionne, had been more concerned with building an empire on the cheap than with working with the formula that succeded so far. Not to use the Chrysler dealers, for whatever reason, is madness.
James| 1.6.12 @ 7:43PM
What I don't understand is how MINI became successful with their handfull of dealerships yet FIAT cannot do the same?
Back in 2003, I was going to buy a new MINI but decided on a Subaru instead due to MINI's poor dealer networks.
gary| 1.6.12 @ 9:15PM
I have owned a few Fiats over the years and will say that the dealer network is a big problem then and now. but im buying a new one because i have a 150 mile a day commute and mpg is very important to me , gas will not be as cheep as it is for long just look at what the rest of the planet pays . Plus most people think of inexpensive cars as throw a way's and rarely take care of them . I did do most of my own service and got well over 100,000 on each of mine and as far as rust issues go try washing them after snow storms i live in upstate new york lots of salt but my cars don't rust away. If you put the same care to a Fiat as a American car it will give you the same service
gary| 1.6.12 @ 9:28PM
The main reason there not using the Chrysler dealer net work is they will bring out the new dodge dart this year it is a Alfa coupe that was cut up and stretched wider and longer to fit fat American butts into but it is basically a clone of the 500 in a prettier body.In the coming years Fiat will be bringing in many of there cars into the Chrysler line up.
Mick Russom| 11.16.12 @ 12:26AM
The Fiat 500 is a piece of crap. These pictures are laughable because this CRAP is lipstick on a god damned pig. Pathetic. I've driven in one. Uncomfortable, and toxic plastic stink and toxic plastic interior. Its a criminal piece of crap.