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Why FIAT Will succeed here

Posted by Bill Sluben on July 26, 2010

Fix-it-again-Tony.  Poor Fiat had so many quality issues in the 80’s they stopped counting and sinistra back to the mother land.  That was then…when U.S. manufacturers were holding 45% of the market and U.S. consumer tastes were turning to trucks and SUV’s.  Now, a new beginning emerges for FIAT this December when they re-enter the U.S. market.

If you think the U.S. market is saturated…it is.  If you think that consumer tastes favor trucks and SUV’s, you’re right.  But consider the curious case of the MINI.  The MINI came in as an oddity and unknown entity.  Dealers were receptive to it’s arrival but forecasted low revenue and expectations.  But consider that last year, Mini sales in the U.S. totaled 45,225 units.  With Chrysler’s distribution network rivaling BMW, there is no wonder that FIAT will eclipse 100,000 units.

The star/early influencer effect cannot be minimized.  Consider Hollywood’s penchant for the chic and unique…and how U.S. media glamorizes their every fashion and product (think Paris Hilton or Tom Cruise and the media adoration/fixation).  The vehicle, if well built, will be a huge success.  The Fiat 300 has sharp European shape/design and will really speak to the Prius/Mini/Civic owners with it’s uniqueness/fuel economy/small size.

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