Almost three decades after it slunk out of the U.S. market, Italian automaker Fiat is back, hoping it can erase lingering memories of poor-quality vehicles and make Americans fall in love with small cars.
It's a tall order, but Fiat and its new dealers are looking forward to the challenge.
Five Pennsylvania auto dealerships -- including two in the Pittsburgh region -- will serve as Fiat dealers. Selected were Hillview Motors Inc. of Hempfield and Diehl Automotive Group of Butler, the company said.
Chrysler plans to have the new Fiat 500, a mini-car with European styling and reduced fuel emissions, in showrooms by February or March. "Some in the nation may open as early as December, if they have a separate showroom ready," spokesman Ralph Kisiel said.
Paul Schimizzi, president of Hillview Motors, said plans are to build a new showroom, adjacent to his Chrysler, Jeep, Dodge and Ram dealership, located on eight acres.
"Depending on when all construction permits have been approved and the winter weather, construction could begin probably early next year on the 5,000-square-foot showroom," Schimizzi said Thursday. The expansion could mean adding 8 to 10 new jobs, to the 60 now employed, he said.
Schimizzi and Corina Diehl, owner of Diehl Automotive Group in Butler, will later become dealers for the Alfa Romeo, a larger, upscale automobile, they said.
"We are so excited to be selected for the Fiat dealership," Diehl said. "Our plans are to locate the Fiat dealership in McCandless, and hire from 20 to 25 new employees."
Her dealership in Butler offers Toyota, Chrysler, Dodge and Jeep and employs 120.
Kisiel said an additional 35 dealerships will be selected before the end of the year. He said he does not know whether any of them will be in the Pittsburgh region.
Fiat took over management of a failing Chrysler Group last year and is close to making a profit there as it revamps Chrysler's cars and trucks. Now, Fiat sees an opportunity to reintroduce its brand and get ahead in the fledgling U.S. small-car market.
Fiat introduced two Fiat 500s at the Los Angeles Auto Show on Wednesday, a three-door hatchback and a convertible version. The hatchback is set to go on sale in the United States next month, with the convertible to follow in 2011. Electric and high-performance versions are planned in 2012, and a four-door version after that.
Fiat 500's starting price will be $15,500 next year, according to Chrysler -- "significantly less" than BMW AG's Mini Cooper, a similar car, which starts at $20,000.
The car will be assembled in Toluca, Mexico. Its 1.4-liter, four-cylinder engine will be produced at Chrysler's Dundee, Mich., plant.
This is the first time Fiat has shown a car bound for North America since it pulled out of the market in 1983. Back then, cars like the Fiat Strada were widely derided as rust-prone and unreliable.
But that's ancient history to U.S. car buyers. Laura Soave, 38, who was appointed head of the Fiat brand in North America earlier this year, said there is very little knowledge of Fiat's earlier poor quality among current buyers, who are drawn to the 500's huggable look. The car has a rounded shape, high roof and circular headlights, and is 7 inches shorter than the Mini Cooper. The design evokes the original Fiat 500, which sold from 1957 to 1975 worldwide.
The design alone will draw buyers, Soave said. "Then you tell them it's Italian, and they think it's cool, sexy, stylish," Soave said. "That elevates it."
Fiat hasn't totally erased its quality problems. The brand ranked last or near last this year in customer satisfaction surveys in the United Kingdom, France and Germany, according to J.D. Power and Associates. But the 500 was tops in the mini-car category in the French survey, and it's been popular with Europeans. More than 500,000 have sold since the car's introduction in 2007. In U.S. terms, that's equivalent to the annual sales of the Chevrolet Malibu or Ford Focus.
Soave said Fiat's sales goals are realistic. The company plans to sell 50,000 cars in North America in the first year, about the same number as Mini. It hopes to double that by 2014.
Additional Information:
Key dates in Fiat's historyFiat plans to return to the U.S. market next month after a nearly 30-year absence. It will initially sell the Fiat 500 hatchback, with convertible, electric and performance versions to follow. Here are some key dates in Fiat's history.
1899 -- Fiat is founded in Torino, Italy. The name stands for Fabbrica Italiana Automobili Torino.
1908 -- Fiat begins selling cars in the United States.
1957 -- The first Fiat 500 minicar is introduced. It is sold until 1975.
1983 -- Fiat pulls out of the U.S. market because of its vehicles' poor reputation for rust and reliability.
2007 -- The second Fiat 500 minicar is introduced in Europe. Fiat CEO Sergio Marchionne says the company hopes to sell it in the United States.
2009 -- Fiat takes over management of Chrysler Group after it exits bankruptcy protection. Marchionne becomes Chrysler CEO.
2010 -- Fiat introduces North American version of Fiat 500 and begins naming dealers in 119 markets. Fiat 500 is set to go on sale in December.
Source: Fiat SpA
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