TOLUCA, Mexico — The Fiat 500 started rolling out of the Toluca assembly plant here this week, the first step in the automaker's return to the U.S. market after a 15-year absence. Fiat President Sergio Marchionne, along with Mexico President Felipe Calderón, were present as production kicked off on the Cinquecento hatchback.
The 2011 Fiat 500 will be the flagship for the Italian automaker's comeback to the U.S. market. Other Fiat and Lancia vehicles will be re-branded as Chryslers, Dodges or Jeeps. But Fiat intends to push its own brand through the 500 and eventually differentiate its cars from Chrysler's brands.
The challenge will be significant. The 500 is a tiny three-door hatchback with extremely limited space for rear passengers. Although it was clearly not designed for the U.S. market, the model has proven to be a hot seller elsewhere, especially in Europe and Brazil. Its fuel efficiency in a time of rising oil prices should be a selling point, and its retro styling could win it U.S. fans in much the same fashion as the similarly sized Mini Cooper.
Fiat announced it will produce between 100,000 and 130,000 vehicles a year for the U.S. market, as well as Mexico and South America. The Mexican government, through its development banks, Nacional Financiera and Bancomext, loaned $400 million at preferential interest rates so the Toluca facility could be retooled. In addition to the technology and internal resources of the Italian automaker, the assembly plant received a total investment of around $550 million.
Fiat assembled its first car in North America in 1910 at a plant located in Poughkeepsie, New York, which was idled not long afterward with the arrival of World War I. Fiat's footprint in the U.S. for the past century was weak and its distribution network was limited. The automaker pulled out of the U.S. market altogether in the 1980s.
Inside Line says: Whether we're ready or not, Fiat-Chrysler is gearing up to build the 2011 Fiat 500 in Mexico. — Loriana Marietta, Correspondent
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arbutuswasabi says:
03:54 AM, 06/23/2010
Chrysler is taking a huge gamble on this car, yet they are really really popular in Europe. That said the average European car on their streets are so different than the US. Cars are much smaller, have smaller engines and typically are diesels. Their driving patterns are also different - more 2 lanes / less highway cruising.
I had a 1979 Fiat Strada and pretty much wished I hadn't bought it. The interior was bigger than most small cars @ that time and that's why I bought it. Besides that, the car was a real disappointment. The A/C was a joke, major electrical problems, leaky head gasket @ 60,000 miles, really thin soy based paint, seat fabric split at the seams, no power and no dealer network. Sure, cars were pretty bad in the 70's - this Fiat was one of the worst.
For Chrysler's sake I hope FIAT has gotten better at building a car.
sftifoso says:
06:11 AM, 03/05/2010
I can see the Fiat 500 succeeding in NA. Fiat should make a big a deal about being Italian and about the connection they have with Ferrari in their ad campaing. Certain people IMO will definetly buy just for being Italian. I just wish they would bring their Abarth versions to the states as well.
juan_mx says:
09:13 AM, 02/16/2010
According to a newspaper in México, the first Fiat 500's are not rolling out from the Toluca plant until december.
The kickoff they mention was only a typical mexican "inaguración" (inauguration) by the president.
The president goes, they show him the plant, and the plant "officially" starts, but that not necessarily means that the production has started.
That is probably the reason they are not showing the american version at the Chicago Autoshow (I have not seen a picture of the car that shows the side markers required in the US).
An addition to my previous post, just for you to know, the Fiat 500 is al least 6 inches shorter and 2 inches narrower than the current generation of the Mini.
If the Mini is crowded inside....you can imagine the 500.
dino6 says:
08:59 PM, 02/11/2010
Fiat knows the quality level needed to succeed in the U.S. so they won't release it until it's competitive from that aspect. Even though the way the article was written makes it sound the 100k+ units is primarily for the US market, I bet it's mainly for the Lat Am markets.
However, if Fiat does their marketing right, I think they have a chance of turning this into a trendy car for younger people. That means all the electronic gizmos. If I were Fiat, I'd be trying to hire the ad agency that did Mini's campaign.
That also implies they have to live with lower profit margins and price this car quite a bit less than the Mini to tap into the college and first job market segment.
atenza94546 says:
02:54 PM, 02/11/2010
Cool, with iQ, Smart Fortwo, Fiat 500.
This will be a big thing for City people small, save gas, easy to move around and cheaper to maintain.
But it will be odd to drive this car to Fresno, Ca.
juan_mx says:
02:01 PM, 02/11/2010
The Mini is much better than the Fiat 500. The 500 is a city car in Europe, the smallest category, and it shares platform with the new Ford Ka (the one driven by Olga Kurylenko in Quantum of Solace)
Fiat has been selling the European version in México for a while starting at about $17,000(including all taxes) with a lot of equipment (7 airbags, ABS, ESP), but even for México it is too small, and certainly does not handle as a Mini Cooper (that starts at $20,000 with taxes).
I am not sure what kind of data they have to support the fact that the 500 will sell in the USA.
In mi opinion, it is too small, the engine is weak, and it feels cheap.
We'll see......
mikedrud says:
01:34 PM, 02/11/2010
Anyone know the estimated price tag on this?
santiagofdz says:
12:15 PM, 02/11/2010
@renorally
Well, the Mexican made Fusion is doing pretty well against Japanese imports...oh wait, Accords are made in Mexico too.
Gosh darnit!
wjtinatl says:
11:04 AM, 02/11/2010
If we have another big run-up in gas prices this spring/summer, then perhaps it's a winner for the short term. And, dependent on it's EPA ratings, it may not be that viable as a hyper-economy car. If gas stays relatively low, I'd predict it struggles after the initial "new toy" sales surge to be an afterthought in the sub-compact wars. Against the Fit, new Fiesta, Mini and possibly the new Aveo I'd say it's going to struggle.
colorado1974 says:
11:03 AM, 02/11/2010
it will be an instant success. just watch Top Gear and their review of the 500.