Fiat Returns To North America

 

Fiat hasn't had a North American presence since 1984. That's about to change, thanks to a recently announced strategic alliance with Chrysler. In return for a 35% stake in the ailing Detroit giant, Fiat will provide sorely needed small car expertise. I suspect the initial wave of vehicles will be re-badged Fiat compacts such as the Grande Punto and Bravo hatchbacks.

However, the most exciting news could be the arrival of the diminutive Fiat 500 on American roads. "We are examining ways and means to manufacture the cars in the United States," Fiat CEO Sergio Marchionne remarked last June. "I don't want to bring it over made. I want to manufacture in [North America]."

Given the relative weakness of the US dollar against the Euro it makes a great deal of sense to build new facilities here to avoid higher European labor costs and the expense of intercontinental shipping. So far, the cleverly redesigned 500 has sold more than 250,000 units, proving that its success is more than simple nostalgia.

Fiat introduced the new Fiat 500 (the Cinquecento) on July 4th, 2007, exactly 50 years since they debuted the original Nuova Fiat 500 in 1957. The old 500 had more than its share of quirks: It was powered by a minuscule rear-mounted 479 cc 2-cylinder engine that whipped up an equally minuscule 13 BHP. It featured a pair of reverse-opening "Suicide Doors" and offered a canvas top that rolled back the full length of the roof. A total of six models were produced until 1975, and at only about 3 meters in length the 500 was perhaps the prototypical City Car.

The new 500's resemblance to the original is only skin-deep. For one thing, it's based on the second-generation Fiat Panda platform and comes equipped with a range of 4-cylinder engines (how often does one get to tout that as a feature?) including a 75hp 1.3L turbo diesel and a pair of gasoline motors that offer either 69hp or 100hp of fun.

Fiat is by no means the first European company to introduce an updated version of a popular classic: VW did it with the New Beetle, BMW is enjoying success with their slot-car inspired Mini sports car, and nearly everything introduced by Porsche these days seems to hearken back to their original designs.

I suspect Fiat will do well with their stylish compact lineup. Fuel prices will soon resume their torturous climb to record highs, and little gems like the 500 could add a splash of style to an otherwise frumpy Chrysler lineup.