In his massive plan to graft the European model onto the United States, Barack Obama’s Fiat 500 is the latest failure.
Behind today’s automotive trades headlines that Fiat’s brand chief has been fired from Chrysler North America is the fact that the Obamacar has limped out of the starting gates in the United States. The tiny, 40 mpg Fiat 500 was Green Church elder Obama’s central requirement in handing Chrysler over to the Italian maker for free in 2009. Fiat is “committed to building new fuel-efficient cars and engines right here in the United States,” Obama said in 2009 in hailing Fiat as the European tutor come to school Chrysler dunces on how to make green cars. “Fiat is prepared to transfer its cutting-edge technology to Chrysler.”
Since lecturing Detroit automakers as a candidate in 2007, Obama has fashioned himself an expert on what Americans want in an automobile. His choice of Fiat was inspired by the chance to bring the company’s tiny, 40 mpg 500 to the States. Never mind that gas prices in Europe are $8 a gallon. Or that Americans drive longer distances. Or that Europeans demand smaller cars for narrower streets.
The One knows autos.
In March of 2009, Obama initially denied Chrysler bailout funds unless its business plan included more small cars. The president’s auto task force urged the Chrysler-Fiat alliance saying it “has the potential to address some of these problems and provide Chrysler with a path to viability. A Chrysler/Fiat alliance could lead to Chrysler manufacturing fuel-efficient vehicles using Fiat’s technology.”
Fast forward two years and 500 sales have a flat. Meanwhile, Americans are gobbling up Chrysler SUVs — in defiance of Obama’s Euro-path for the company — and fueling the automaker’s resurgence.
In October, Chrysler Jeep truck brand sold 35,000 vehicles (with fat $5,000 profit margins) as the company posted a $200 million third-quarter profit. The Fiat 500 sold just 2,000 copies.
Despite a splashy U.S. debut including an ad campaign featuring pop star Jennifer Lopez and expensive, wrap-around, front page ads in USA Today, 500 “sales are far below projections,” reports the Detroit News.” About 15,800 Fiat 500s have been sold in the U.S. through October. That makes it nearly impossible to meet the target of 50,000 a year in North America annually.”
Indeed, the Obamacar is hurting on its home continent as well. The brand had been losing market share and is unprofitable.
The Fiat 500 is more evidence that — like Solyndra and windmills — Obama’s fascination with Europe has little to do with facts and everything to do with ideology. Obama is determined to convert Americans to the Green Church, but they aren’t buying.
Could it be that it is a 16,000 dollar Yugo? The Rio is overpriced, but 3,000 dollars cheaper. (and is nearly identical or superior in MPG) Frankly, the Rio has 4 doors and is a bit better looking.
They Built the Fiat 500 to compete with the Volkswagon and Mini Coop, which it does. But the Volkswagon is a microscopic portion of the US market, roughly 2.2% in 2010. Fighting over the creme of a 20,000 car market isn't going to sell 50,000 cars.
Design a light truck with a high gas mileage. Something that can pull a trailer one day, and drive the highway the next. MPG 20/40 respectively. That is a vehicle I'll shell out 20 grand for. They always make these things tiny. I don't need to break 70 mph, How about a vacation van to move 4 adults and a child at 40 mpg highway?
Look, I'm sure a lot of people buy cars for a lot of different reasons, but the main reason I buy a vehicle is because I need it for work and travel. Sure, a Fiat 500 would get me to work, but I couldn't use it to take the kids to grandma's place. Sometimes I tow a trailer, I have an old 98 Mazda pickup for that. 17 mpg.
Frankly, the Fiat was a niche car that Obama wouldn't own in real (non presidential) life. (He has a wife and two kids, they wouldn't fit.) Car companies have the highest incentive to build a car that people need. People just don't need expensive little ugly cars.
Reply to this commentLinkReport AbuseYou can have any size vehicle you want. Haul as many people and tow as large a trailer as you care to. And sure, it can get as many mpg as you can imagine. It will be inexpensive too!
You just have to repeal the Laws of Physics.
Reply to this commentLinkReport AbuseThe One knows cars like he knows America. From afar and smugly.
Usiing J-Lo just reminds us that one of the things we lose in a compact car is that we can't make out in one, either. She looks both sexy and out of place in a 500.
Reply to this commentLinkReport AbuseI'm unsure how the Fiat would help our economy when it is built in Mexico.
Reply to this commentLinkReport AbuseIt can't be built in the US, the costs would be too high, as it would have to be built in a Chrysler plant. It barely makes FIAT and Chrysler any money as it is.
Reply to this commentLinkReport AbuseThey look like rolling toasters, what did they expect?
Reply to this commentLinkReport AbuseAm I the only one here who actually likes the Fiat 500? I think it's a great looking design, and it's a fun car to drive. Better than Das Mini.
Reply to this commentLinkReport AbuseI own a Fiat 500 Sport. I love it. I drive 50+ miles in it every day to drive to work and back. It handles great and is a blast to drive. Worth every penny.
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