Slow Selling Fiat 500 Forces US Layoffs

Chrysler Group has suspended production this month of the 1.4-liter FIRE engine that powers the Fiat 500 in North America because of slow U.S. sales of the subcompact, a top UAW local official said.

More than 100 of about 400 hourly workers at Chrysler's Global Engine Manufacturing Alliance Plant in Dundee, Mich., were laid off at the start of the month and don't know yet when they might be back on the job,

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Hoorayforpeepee - 11/15/2011 12:06:41 PM

+1 Boost

There was an article recently on how in cold conditions the manual tranny will be a real hassle to shift into third and reverse, the dealers have asked customers to wait a few minutes before attempting the shift

Fijian - 11/15/2011 2:40:59 PM

+1 Boost

They have failed in the past too because they want to sell a mediocre overpriced product in an already crowded segment.You cannot bring a knife to a gun fight and expect to win.Even Jenifer Lopez cannot help them in the long run.

mini22 - 11/15/2011 7:05:37 PM

+1 Boost

The failure is not in Fiats under performance so much. Rather it is the misguided expectation of being able to sell 50,000 cars in the first yr that Fiat has returned to the US. The problems with the slow ramp up of dealers, not having an Abarth from the get go, and frankly lots of A class competition. The 500 is not a mediocre product. However Fiat could make a few changes to increase sales. The Abarth should help if it is priced right. From most of what I've read the 500 is a good handling, good riding car. It is simply a little too underpowered, however. For the existing 180 day supply it is time to start a little discounting. I'd knock $500 of all existing stock for starters.
Next I'd get rid of the Lounge model. It is simply too expensive for what it offers.For 2013 Fiat needs to up the Horsepower and Torque.(say by about 10 to 15%) Also the suspension settings for the current sport should be the standard suspension set up. The Sport should have more aggressive settings then the Pop, including a sport exhaust. Ditto for the convertable.Now with the Abarth Fiat should be marketing the 500 as the "Sports Car with Economy". They need to separate themselves from the Korean and Jap competition.Also they should lose Jennifer Lopez and get rid of the "girlyman persona" type advertizing.In conclusion a 115 to 120 HP Fiat 500 will give it the performance to match or exceed a base Mini. Then with the Abarth with it's 160 HP this should help the cause.