Fiat eyes American return with the 500

• Source: Shanghai Daily
• [08:24 September 01 2010]
• Comments

Fiat 500

Fiat is returning to the US after a 30-year absence, and now Chrysler Group dealers have to decide whether they want to sell the Italian brand that initially will offer just one model, the tiny Fiat 500.

At a meeting in Detroit on Monday, about 400 Chrysler, Dodge and Jeep dealers who want to sell Fiats were told that the exotic minicar will be the only 2011 model in their Fiat showrooms.

Chrysler, now controlled by Italy's Fiat, was short on specifics such as price and future models. A larger model was promised, although covered by a tarp.

Chrysler hopes to sell 50,000 of the stylish, bulb-shaped 500s the first year they arrive. Eventually four versions will be offered, a standard 500, a cloth-top convertible, a high performance version with up to 185 horsepower, and in 2012, an electric version, the dealers said.

Fiat-run Chrysler Group LLC wants the 500 to become a strong contender in the US small-car market, where the Detroit auto maker has struggled for years. The car will be sold by about 165 Chrysler Group dealers in 125 markets starting in December.

Dealers will be asked to build separate showrooms and have separate sales and service staffs for the cars, in order to help create a distinctive European aura for the 500.

Many dealers were impressed, but some were left with questions about whether it would be worth the investment because future models were not unveiled. Chrysler CEO Sergio Marchionne, who also runs Fiat, has said Fiat dealers will get first shot at selling the Alfa Romeo brand when it returns to the US in 2012.