Last month, 29 of Fiat's 130 retail outlets in the United States didn't sell a single 500 and the automaker has more than a half year's supply still sitting inventory.
Despite launching with much marketing excitement and critical acclaim, the Fiat 500isn't quite resonating with buyers when it comes time to sign on the dotted line.
Last month, 29 of Fiat's 130 retail outlets in the United States didn't sell a single 500 and the automaker has more than a half year's supply still sitting inventory. Nearly 14,000 500s are languishing on dealer lots, a figure that almost matches Fiat's year-to-date sales of 15,826 units.
It's unclear if the poor sales performance is to blame for the abrupt departure of Fiat's North American chief, Laura Soave, earlier today, but signs seem to point in that direction.
Fiat has begun to offer its first rebates on the new model - a $500 incentive that started earlier this month.
Initially, Fiat blamed the 500's slow sales on the limited dealership network, which numbered just 60 outlets for much of 2011.
"I think Ferrari has more dealers than that," Fiat and Chrysler CEO Sergio Marchionne joked.
But with word emerging today that nearly a quarter of Fiat's dealers didn't find a single buyer, it's obvious that the 500 has more hurdles than just its slow-building retail network.
Automotive News spoke with Pennsylvania dealer David Rovny, who cited the car's relatively high $16,000 price of entry.
People are expecting the car to be less expensive because of the size," he said.
A range-topping 500 can list for more than $23,000, and a performance-minded Abarth-tuned variant that debuted last week at the Los Angeles Auto Show could near $30,000 when fully optioned.
Others have faulted Fiat's marketing efforts, which have primarily centered around an ad campaign featuring Jennifer Lopez. While last night's product placement during the American Music Awards was no doubt a high point, Fiat's global brand chief says that awareness in the U.S. is still weak.
"A brand in the launch phase is not the same as a brand that has been around for 85 years," Olivier Francois said in an interview with Automotive News last week.
"I don't think we have a car problem; people love the car," he told Advertising Age . "I think we have an awareness problem."
But the people who "love the car" aren't necessarily those Fiat aimed for, dealer Rovny said. Instead of the young college-age buyers Fiat sought out, Rovny said that most buyers so far have bought 500s as a third car.
That's the same problem that has beset Daimler's Smart brand, which hoped to catch on with a younger urban market but has instead found favor among middle-aged buyers seeking something unique.
With a new top executive already in place, Fiat's U.S. and Canada efforts are likely to see a quick shakeup.
References
1.'A bumpy road...' view
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