Fiat News: FCA To Cut Prices of Fiat Vehicles In U.S.

[William Maley]

Sales of Fiat vehicles in the U.S. have been tanking and FCA is making a drastic change to try and reverse this. Automotive News got their hands on documents revealing a new pricing structure that will see Fiat cut the prices on some of their models.

The base 500 will see a price cut of $2,000 ($14,995 from $16,995). The price doesn't include a $995 destination charge. The big price cuts will come to the 500C lineup as there will now be a $1,495 difference between the cabrio and regular hardtop. A key example is the 500C Abarth which sees its price drop from $26,695 to $21,490 for 2017. Prices for the 124 Spider and 500X remain unchanged.

A Fiat spokesman declined to comment.

Source: Automotive News (Subscription Required)
Pic Credit: William Maley for Cheers and Gears

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[G. David Felt]

Yawn, Nothing special here, just a Fire Sale to clear out GARBAGE Auto's.

Fiat, you want to sell cars in America? 

First start with making reliable cars.

Second start with making auto's that actually fit Americans.

Third, try to actually have a diverse portfolio rather than coping Mini with the same half baked garbage.

Fourth, drop the used car sales approach and listen to the customer.

I could go on and on but I think you get the point, FCA, you listening?

[A Horse With No Name]

14 minutes ago, dfelt said:

Yawn, Nothing special here, just a Fire Sale to clear out GARBAGE Auto's.

Fiat, you want to sell cars in America? 

First start with making reliable cars.

Second start with making auto's that actually fit Americans.

Third, try to actually have a diverse portfolio rather than coping Mini with the same half baked garbage.

Fourth, drop the used car sales approach and listen to the customer.

I could go on and on but I think you get the point, FCA, you listening?

They have other issues.....their heart is not in passenger car production. they need to GTFO of making anything other than the Challenger, Charger and 300...and drop them like a hot potato when they no longer are cash cows like they are now.

Bring in Alfa SUV's as boutique vehicles, and vehicles like the Alfa 4C and the Alfa sedan...this will bring them attention in car magazines and on the road.

Dump every dime into Jeep and RAM, and get your best and brightest engineers into a skunk works doing electrics and hybrids.

The new Pacifica Hybrid is actually supposed to be pretty good, so build on that technology.

They need to differentiate the different jeep models more clearly from each other and continue to just market the living dog piss out of Jeep...

Continue to build Jeep in foreign markets, where it has always done fairly well.

Fix the administrative mess that FCA corporate is.  Hire someone somewhat unpleasant that will take charge and make heads roll.

Find creative sponsorship opportunities for RAM, be they bull riding, Rodeo, Bass fishing, whatever.  Traditional advertising does not do jack squat, send the Ram advertising people over to talk to the Jeep advertising people.  Stop spending money on traditional advertising almost entirely.

Copy the DNA of what MINI was as a fun unique brand when it first came over in 2002, 2003, and not the mess it is now.

Dump the entire Fiat line other than the 500X and 500 Abarth, and switch the plant in Mexico building these to building Jeeps.  Sell the 500X and 500 Abarth as limited production boutique vehicles here in the US. Keep the ATP High. Under this scope of sales, you will only sell 5000 to 10,000 Abarths Max in the US, so you could import them from Italy.

Do not bring out a Fiat crossover other than the 500X, as it will cannibalize Jeep sales.

Dodge and Chrysler need to go the way of Plymouth, Mercury, all good flesh, and the Dodo bird. Pacifica and Durango could become RAM products, drop the horrible dated unreliable Journey and burn its legacy with flames.

Continue to build on the success of the U-connect infotainment and put some of your best people in charge of technology because that is what will sell vehicles for you in the future. Especially people dropping coin for a 50K Grand Cherokee.

Edited November 21, 2016 by A Horse With No Name

[G. David Felt]

I love what you stated, 

I would say dump Chrysler and move the Pacifica into Dodge. FCA, should dump all of Fiat other than the two you mention. Keep Fiat and Alfa as the Boutique sales. Focus on Dodge, Ram & Jeep. That is what I think would drive sales, but get new products ASAP into these companies.

[A Horse With No Name]

25 minutes ago, dfelt said:

I love what you stated, 

I would say dump Chrysler and move the Pacifica into Dodge. FCA, should dump all of Fiat other than the two you mention. Keep Fiat and Alfa as the Boutique sales. Focus on Dodge, Ram & Jeep. That is what I think would drive sales, but get new products ASAP into these companies.

Or actually renew the current lineups with continuous improvements. Do not do what GM did with the Monte Carlo, Cutlass, Regal, et al and milk the name for all that it is worth with lackluster product.

If GM had handled these product lines properly, Oldsmobile would still be in driveways all over suburban Midwestern neighborhoods....

[G. David Felt]

1 minute ago, A Horse With No Name said:

Or actually renew the current lineups with continuous improvements. Do not do what GM did with the Monte Carlo, Cutlass, Regal, et al and milk the name for all that it is worth with lackluster product.

If GM had handled these product lines properly, Oldsmobile would still be in driveways all over suburban Midwestern neighborhoods....

I see the point your making, but even in the 80's as a college kid, I questioned the need for so many name plates.

I honestly think the world wide auto industry still has way too many and with all the various Chinese name plates wanting to spread across the globe. I think we will see another consolidation and shutdown as not everyone will win.

I Personally can see Chrysler going to the History books. Alfa should have been left there and Fiat could end up there too. Alfa/Fiat as a boutique is fine, move chrysler products into Dodge and focus as you have mentioned on the product lines world wide.

I wonder about some of the name plates in Europe too. Just like Japan, I think eventually we will see certain brands become subbrands under bigger companies. Japan brands I can see going this way would be Mazda, Mitsubishi, Suzuki. 

[A Horse With No Name]

1 minute ago, dfelt said:

I see the point your making, but even in the 80's as a college kid, I questioned the need for so many name plates.

I honestly think the world wide auto industry still has way too many and with all the various Chinese name plates wanting to spread across the globe. I think we will see another consolidation and shutdown as not everyone will win.

I Personally can see Chrysler going to the History books. Alfa should have been left there and Fiat could end up there too. Alfa/Fiat as a boutique is fine, move chrysler products into Dodge and focus as you have mentioned on the product lines world wide.

I wonder about some of the name plates in Europe too. Just like Japan, I think eventually we will see certain brands become subbrands under bigger companies. Japan brands I can see going this way would be Mazda, Mitsubishi, Suzuki. 

I think we will see a major reshuffling when we go to electric cars. Give the current auto market until 2030, 2035 at the latest.  China and Germany will lead, and at some point electric will hit critical mass in the USA.

At that point, all bets are off.

We are whistling by the graveside of everyone from Buick to Mazda IMHO.  Because I think that electric will be a slate wiper in terms of how cars are perceived, purchased, driven, et al.

Consider also that the world keeps changing to being more and more urban.  At some point, inter city rail will be a big thing, even in the United states...and the United states will fight that like crazy for the next 50 years...people will no longer drive 450 miles to get somewhere.  Or at least not in the quantity they do now.

[FAPTurbo]

the big story is that the abarth 500 is 5 g's cheaper and that makes it the pocket rocket bargain of the century

[G. David Felt]

6 minutes ago, bigpoolog said:

the big story is that the abarth 500 is 5 g's cheaper and that makes it the pocket rocket bargain of the century

For the first couple months before it dies.

[A Horse With No Name]

52 minutes ago, bigpoolog said:

the big story is that the abarth 500 is 5 g's cheaper and that makes it the pocket rocket bargain of the century

Sadly it is such a depreciation magnet that it will loose its arse financially after you buy it...limiting production and selling it as a boutique vehicle could keep it profitable.

Instead, Chrysler's philosophy seems to be we loose money on every passenger car we sell but make up for it in volume.

[smk4565]

Those price cuts aren't even enough to make any difference.  Dodge and Chrysler are in the same situation, these are all bad cars, and there is too much information now online where people can do their own research.  It isn't like the 80s or 90s when the sales people at the dealership could persuade a buyer because all their was was car magazines doing reviews, which usually were of sports cars anyway.

Dodge has 20% off MSRP right now and their sales are still in the tank.  Fiat could have 50% off and the Corolla would still outsell their whole line.  I would bet money that they could sell the Charger for $14,995 and the Camry would outsell it 3 to 1.  No one wants these cars regardless of how they discount them.

[A Horse With No Name]

34 minutes ago, smk4565 said:

Those price cuts aren't even enough to make any difference.  Dodge and Chrysler are in the same situation, these are all bad cars, and there is too much information now online where people can do their own research.  It isn't like the 80s or 90s when the sales people at the dealership could persuade a buyer because all their was was car magazines doing reviews, which usually were of sports cars anyway.

Dodge has 20% off MSRP right now and their sales are still in the tank.  Fiat could have 50% off and the Corolla would still outsell their whole line.  I would bet money that they could sell the Charger for $14,995 and the Camry would outsell it 3 to 1.  No one wants these cars regardless of how they discount them.

Dodge Charger also has one of the highest rated of depreciation of any North American passenger car.

[Suaviloquent]

Actually there's a better pocket rocket, and it's from Ford, the Fiesta ST.

 

It handles better, has a nicer interior (though devoid of charm) and has more space. And even if it costs more, probably has better resale and reliability by a fair margin. Please do edumicate me on the last two, if I'm totally wrong.

[FAPTurbo]

fisting is fun but the abarth has hooligan panache coming out the ying-yang

[Suaviloquent]

Hmmm, but you actually get a car with the Fiesta. With the Fiat 500 you get a 2 seater pod with 2 padded handbag perches. 

 

 

[Suaviloquent]

As it pertains to the price cuts, why are they in this market, trying to establish themselves, when their sales are tanking?

And their price points are being eroded because they have huge problems with the brand. Whole sorts of issues.

The same Chrysler 200 and Dodge Dart that doesn't sell probably blow the sales of Fiat out of the water. 

 

Such a mismanagement of brands. Like as if Ameri and Cans are willing to accept cars designed for Europe only. No, we buy small crossovers because they fit a certain image profile at a low price point.

But goddamn it, we all really do want to drive are F150 Plats, Escalades, Mercedes GLS, you know, the big boys.

This reminds me in many ways of when Target came to Canada. They basically closed shop here after 1 year, realizing what a challenging retail environment (especially in the department store class like Wal Mart, Sears, Crappy Tire) Canada really is.

 

Why are we here? Does anyone working at FCA US LLC, the person who is head of Fiat brand in North America, ask that question?

Like what role can Fiat play? Mini is becoming very large now, but their sales are lower too, because again, niche brand, shoddy reliability, and poor resale. 

 

[daves87rs]

Not going to make a difference anyways...expecting a chinese company to pick up Jeep for a song, junk the rest and just use the tech that they have picked up...

[A Horse With No Name]

5 hours ago, daves87rs said:

Not going to make a difference anyways...expecting a chinese company to pick up Jeep for a song, junk the rest and just use the tech that they have picked up...

We will see what will happen. i am not ready to throw the towel in yet, but in terms of passenger cars the fat lady is warming up and getting ready to sing...loudly...

7 hours ago, Suaviloquent said:

Like what role can Fiat play? Mini is becoming very large now, but their sales are lower too, because again, niche brand, shoddy reliability, and poor resale. 

 

Mini has no existential awareness of who they are and what their brand stands for. Even people I know who sell MINI products or work for BMW Finance admit this.

Ironically, Tesla may be the only car company in the world that knows exactly who they are and why they exist...Ford in my mind would come in a reasonable second...

7 hours ago, Suaviloquent said:

 

The same Chrysler 200 and Dodge Dart that doesn't sell probably blow the sales of Fiat out of the water. 

 

At this point they are just trying to recover the fixed costs of keeping the plants running IMHO. Trying to tread water until they figure out how to dig themselves out of...or deeper into...the hole they have made for themselves.

7 hours ago, Suaviloquent said:

Such a mismanagement of brands. Like as if Ameri and Cans are willing to accept cars designed for Europe only. No, we buy small crossovers because they fit a certain image profile at a low price point.

 

We are willing to accept them in low numbers as niche vehicles, where they already have products designed and selling in Europe they can sell here with minimal investment. But they are stoned silly if they think these models will ever get mainstream acceptance.

[A Horse With No Name]

8 hours ago, Suaviloquent said:

Hmmm, but you actually get a car with the Fiesta. With the Fiat 500 you get a 2 seater pod with 2 padded handbag perches. 

 

 

As much as I would cross the Pacific in a leaky row boat before I woudl say nice things about any car maker...Ford gets it about 85 percent right with the Fiesta. I have no rational basis  In reality for saying this but my gut tells me that Ford has something really kind of special in store when they refresh the Fiesta and Focus.

8 hours ago, bigpoolog said:

fisting is fun but the abarth has hooligan panache coming out the ying-yang

It is wildly under rated as a sporty car. Were my wife not threatening to cut me off if I buy a Fiat product, one might be in my driveway. The only blue I want to see in an automotive transaction is World Rally blue on a WRX....I do not wish for my own testicles to become the same shade of blue.

[A Horse With No Name]

7 hours ago, Suaviloquent said:

Why are we here? Does anyone working at FCA US LLC, the person who is head of Fiat brand in North America, ask that question?

I kind of doubt FCA corporate culture allows much introspection or creative dialogue.  They seem like a very top down "we have always done it this way" kind of organization.

Ford and GM seem much more adaptable....but VW in my mind does the same thing in terms of allowing negative group think and a disconnect with reality ruin what could be a fine brand.

Again, this is why I said I try to look at things from an overall corporate culture point of view in the Ford Moving Away From One Ford Platform thread. Alan Mulally was not allowed to kill Lincoln for a reason in terms of Fords corporate culture, and fords corporate culture was open to the counter intuitive move of putting money into Lincoln which has gained then quite a few conquest sales....Lincoln is up for the year, and the Conti continues to conquest.

I am saying FCA and VW are incapable of rational self examination, and the resulting change...and that is why they are in the shape they are in.

[G. David Felt]

9 hours ago, bigpoolog said:

fisting is fun but the abarth has hooligan panache coming out the ying-yang

Is that what you call a Fisting Boat Anchor, Ying-Yang? I always thought it was a worthless Gochu!  Not sure what the word is, look up in Korean language.

The Socialist culture of Italy is their doom. Italy has many fine things but also builds a ton of crap products. Way too many lazy people building crappy products.

[FAPTurbo]

10 hours ago, Suaviloquent said:

Hmmm, but you actually get a car with the Fiesta. With the Fiat 500 you get a 2 seater pod with 2 padded handbag perches.

fair, and with the fiesta you can have a baby seat in the back to coddle your freshly neutered testicles. 

[G. David Felt]

4 minutes ago, bigpoolog said:

fair, and with the fiesta you can have a baby seat in the back to coddle your freshly neutered testicles. 

Damn, I was wondering where both of them had gone. That explains the noise in the background I heard for the first few years.

Thanks, that explains allot.

[Stew]

17 hours ago, A Horse With No Name said:

Dodge Charger also has one of the highest rated of depreciation of any North American passenger car.

Charger V6, particularly the SEs.  The V8s seem to hold value pretty well, especially those with an SRT badge. 

[Stew]

I agree Chrysler needs to go, but Dodge sales aren't bad at all for what they have save the Dart.  Mine out a compact and midsize for Dodge, bring over the Pacifica, Give Dodge a version of the Cherokee with a sporty design and a Challenger style interior and give it turbo 4 power and concentrate on handling.   Give the LX cars one final refresh to tide them over until the new replacements arrive in 2021.  They still need a more car/cuv oriented brand that isn't as specialized as Jeep with off-road or utility with Ram.  Fiat needs phased out, or keep the 500X, 124, and the Abarth 500, maybe as order only from the Dodge dealership.  If he do Alfa right they could very well have a niche hit on their hands.  Just some thoughts.

[daves87rs]

3 hours ago, bigpoolog said:

fair, and with the fiesta you can have a baby seat in the back to coddle your freshly neutered testicles. 

 

[Suaviloquent]

Hey it's not that hard a squeeze into the back of the Fiesta.

I've sat in one. Once. Okay, alright the backseat is also garbage, but it's half as garbage as the 500.

Twice as less of a waste! 

There is an inherent advantage when you tote other people around, they'll never ask for a ride again, given the damage dealt is permanent. With 500, you never get the chance to torture someone in the back. Let us all hear the wails of REPENT!

While the extra space just entices you to spend just that much more at Costco or any club warehouse deal, or IKEA.

[A Horse With No Name]

On 11/23/2016 at 2:38 PM, Suaviloquent said:

Hey it's not that hard a squeeze into the back of the Fiesta.

I've sat in one. Once. Okay, alright the backseat is also garbage, but it's half as garbage as the 500.

Twice as less of a waste! 

There is an inherent advantage when you tote other people around, they'll never ask for a ride again, given the damage dealt is permanent. With 500, you never get the chance to torture someone in the back. Let us all hear the wails of REPENT!

While the extra space just entices you to spend just that much more at Costco or any club warehouse deal, or IKEA.

The Fiesta is really, really abetter car in ST guise than the Fiat 500 Abarth....

[Stew]

I will lake a Beetle, even a 1.8T over either or a Golf 1.8T.  Yes they are bigger, but price would be similar.  You get all the driving pleasure without the claustrophobia. 

[ccap41]

..or the performance..

[A Horse With No Name]

5 minutes ago, ccap41 said:

..or the performance..

Given that the 1.8T uses a timing chain, and VW can't get timing chains right to save their ass...the real performance one would need would be from the Ford F350 Tow truck hauling it in for warranty work....

[hyperv6]

Fiat has under performed since they came out. Now that they have been out the few people they did attract have either bought one or moved on. 

Fiat brought us a crappy modern take of a crappy old car. There was no real love or romance of this car. Fiat left here in shame with buckets of rust and broken timing belts behind. The new technology may have made them more reliable than they were but no where as good as other options. 

The problem with FCA products outside of Jeep and Ram is they are generally received as being better than they were but not better than others in their class. This is no way to change hearts and minds.  The fact is the lack of money is showing and what money they are making is being wasted at Alfa when it should have gone into the volume brand Chrysler. 

A class leading quality Chrysler line of products could have funded all their adventures in Europe but now they go down by the bow as they expect Alfa to take on BMW and the like. Sotty that is not going to happen. They just don't have the time or money to compete. 

GM is making money with Cadillac and they will hold volume with the coming Crossovers. The rest of GM is proving profitable so GM has time to work on Cadillac and grow them to where they need to be. FCA time is running out and if they do not partner up soon they will be broken up and sold off. Well the parts anyone would want would be sold off. 

Toyota is out, VW is off the table with low funds so this leave few real takers that could financially help outside someone in China. 

You know when they start talking the already delayed RWD cars now back to 2021 things are grim. 

Fiat is not loved like Mini and suffered the same stigma that they have to carry on the same look to retain the retro feel. It wears thing when you are loved as well. 

Edited November 25, 2016 by hyperv6

[ccap41]

20 minutes ago, A Horse With No Name said:

Given that the 1.8T uses a timing chain, and VW can't get timing chains right to save their ass...the real performance one would need would be from the Ford F350 Tow truck hauling it in for warranty work....

LOL Yeah they aren't known to be the most reliable vehicles on the road...

[A Horse With No Name]

22 minutes ago, hyperv6 said:

Fiat has under performed since they came out. Now that they have been out the few people they did attract have either bought one or moved on. 

Fiat brought us a crappy modern take of a crappy old car. There was no real love or romance of this car. Fiat left here in shame with buckets of rust and broken timing belts behind. The new technology may have made them more reliable than they were but no where as good as other options. 

....
 

You know when they start talking the already delayed RWD cars now back to 2021 things are grim. 

Fiat is not loved like Mini and suffered the same stigma that they have to carry on the same look to retain the retro feel. It wears thing when you are loved as well. 

It really is the beginning of the end for them....