One of the most discussed things about Mopar lineup is the state of the FIAT brand. As a part of the recovery of Chrysler from near death experience of 2008/2009, the FIAT brand would be launch in North America through the Chrysler organization with new stand-alone dealers (called FIAT Studios) as an response to $4-$5 gas across the United States.
There was much optimism for the 500, but after several botches (delayed inventory, slow dealer opens with poor service , no model follow up and bad reliability) and the rise of crossovers/SUVs the FIAT brand in North America failed flat.
Majority of the FIAT Studios closed down, with the survivors bundle into CDRJ (Chrysler,Dodge, Ram,Jeep) network, and with collapsing volume together with the sole model offering in North America being 500X many in the media began generating gossip about the fate of the FIAT brand in North America. Such noise was put to rest by Carlos Tavavers as he made clear that due to Biden Administration's regulations, FIAT brand is necessary in North America for meeting future fuel economy standards.
So how Stellantis should go about a FIAT brand overhaul in North America? This is my directions:
1: Decoupling FIAT brand in North America from FIAT brand in Europe...
According to the Executive lineup for Stellantis, it clearly detach the FIAT Brand in Latin America from FIAT brand in Europe, likely driven by the different market needs & expectations out FIAT. I believe the same action is important for the brand(FIAT) in North America given sizes of humans on the continent(in no disrespect),movement to crossovers, and the need to create a identity that would appeal to North American customers.
2: Opel
One the issues with the FIAT brand performance in North America besides the size is the design, and how it effected packaging. The designs just may not simply ''click'' with U.S. buyers, due to a lack of knowing what is the heritage of FIAT given the long hiatus in North America. Therefore classico/throwback/retro themes are pointless for the FIAT Brand in North America.
One the other hand, one brand design's that have gain traction in North America (particular in Crossovers) is Opel. The Opel Antara sold as Saturn Vue generated U.S. annual sales volume in lower 80,000 CUV's despite the Saturn brand having around only 350 dealerships which is a great outcome that got GM thoughts of moving Saturn into the Pontiac-GMC-Buick Dealership network while eliminating Pontiac. With GM's bailout & bankruptcy, the company end up scrapping both Pontiac and Saturn without paying dealerships (a massive savings given the various U.S. States laws around the act of franchising).
A legacy of those '' Opel '' Saturn's' at GMC-Buick Dealership network'' thoughts was the Opel Mokka getting sold as the Buick Encore. The Encore has sold annual volume in the upper 80,000 volume, however it does have a relevantly lower Average Transaction Price ($19,000) but has move to a ''classic'' role as GM introduce new the Encore GX.
The Encore GX also marks the split of the Encore/Mokka because in 2020, PSA launched the redesign Mokka on the CMP platform, and now given PSA folding into FIAT Chrysler creating Stellantis there's an opportunity for Mokka as the centerpiece of the FIAT brand in North America given Opel's past SUV designs have had past success in North America. Mokka as a FIAT would be strong evolution of the original FIAT U.S. proposition on A-B Segment, but with crossover form and Opel designs are forward-driven(closer to North American tastes).
The other two models is the redesign Astra on PSA underpinnings, but in ''Active'' crossover body styles not unlike what Ford was planning to do with the Focus in North America(cancel because of tariffs related to Chinese goods) . The last model that's added is PSA Crossover replacement of the Insignia, creating 3 non-conventional offerings.
3: Minimized Spend
That's the benefit of the Mokka, Astra ''Active'' and Insignia replacement, should be low in cost to meet U.S. standards. No new capacity or local tooling being added as they coming from France & Germany, and same sheet metal. Interior pretty identical to avoid new spending.
4;Avoid diluting Margins and Average Transaction Prices
By being made in France & Germany, the European operations will book the wholesale revenue on these products, minimizing revenue dilution of North America as more of Stellantis North America Average Transaction as it heads into the $50,000 mark(the new Jeep SUV's). Margins will be protected by lower volume, but higher priced (120,000 annual volume, average transaction Price of low 30's ).
5:''Bright skies'',
The marketing should be Bright skies, optimistic, progressive. Push the features, unique design, show the vehicle being used in life (kind of a mix of Subaru and Volvo). Give a longer warranty such as 8 years/80,000 miles which is longer than the other Stellantis brands.
That's my new position for the FIAT brand in North America, one that won't break the Company, if anything final create a low new investment path of a worthwhile specialty brand that hep meets fuel ecomomy standards.
Thoughts?
There was much optimism for the 500, but after several botches (delayed inventory, slow dealer opens with poor service , no model follow up and bad reliability) and the rise of crossovers/SUVs the FIAT brand in North America failed flat.
Majority of the FIAT Studios closed down, with the survivors bundle into CDRJ (Chrysler,Dodge, Ram,Jeep) network, and with collapsing volume together with the sole model offering in North America being 500X many in the media began generating gossip about the fate of the FIAT brand in North America. Such noise was put to rest by Carlos Tavavers as he made clear that due to Biden Administration's regulations, FIAT brand is necessary in North America for meeting future fuel economy standards.
So how Stellantis should go about a FIAT brand overhaul in North America? This is my directions:
1: Decoupling FIAT brand in North America from FIAT brand in Europe...
According to the Executive lineup for Stellantis, it clearly detach the FIAT Brand in Latin America from FIAT brand in Europe, likely driven by the different market needs & expectations out FIAT. I believe the same action is important for the brand(FIAT) in North America given sizes of humans on the continent(in no disrespect),movement to crossovers, and the need to create a identity that would appeal to North American customers.
2: Opel
One the issues with the FIAT brand performance in North America besides the size is the design, and how it effected packaging. The designs just may not simply ''click'' with U.S. buyers, due to a lack of knowing what is the heritage of FIAT given the long hiatus in North America. Therefore classico/throwback/retro themes are pointless for the FIAT Brand in North America.
One the other hand, one brand design's that have gain traction in North America (particular in Crossovers) is Opel. The Opel Antara sold as Saturn Vue generated U.S. annual sales volume in lower 80,000 CUV's despite the Saturn brand having around only 350 dealerships which is a great outcome that got GM thoughts of moving Saturn into the Pontiac-GMC-Buick Dealership network while eliminating Pontiac. With GM's bailout & bankruptcy, the company end up scrapping both Pontiac and Saturn without paying dealerships (a massive savings given the various U.S. States laws around the act of franchising).
A legacy of those '' Opel '' Saturn's' at GMC-Buick Dealership network'' thoughts was the Opel Mokka getting sold as the Buick Encore. The Encore has sold annual volume in the upper 80,000 volume, however it does have a relevantly lower Average Transaction Price ($19,000) but has move to a ''classic'' role as GM introduce new the Encore GX.
The Encore GX also marks the split of the Encore/Mokka because in 2020, PSA launched the redesign Mokka on the CMP platform, and now given PSA folding into FIAT Chrysler creating Stellantis there's an opportunity for Mokka as the centerpiece of the FIAT brand in North America given Opel's past SUV designs have had past success in North America. Mokka as a FIAT would be strong evolution of the original FIAT U.S. proposition on A-B Segment, but with crossover form and Opel designs are forward-driven(closer to North American tastes).
The other two models is the redesign Astra on PSA underpinnings, but in ''Active'' crossover body styles not unlike what Ford was planning to do with the Focus in North America(cancel because of tariffs related to Chinese goods) . The last model that's added is PSA Crossover replacement of the Insignia, creating 3 non-conventional offerings.
3: Minimized Spend
That's the benefit of the Mokka, Astra ''Active'' and Insignia replacement, should be low in cost to meet U.S. standards. No new capacity or local tooling being added as they coming from France & Germany, and same sheet metal. Interior pretty identical to avoid new spending.
4;Avoid diluting Margins and Average Transaction Prices
By being made in France & Germany, the European operations will book the wholesale revenue on these products, minimizing revenue dilution of North America as more of Stellantis North America Average Transaction as it heads into the $50,000 mark(the new Jeep SUV's). Margins will be protected by lower volume, but higher priced (120,000 annual volume, average transaction Price of low 30's ).
5:''Bright skies'',
The marketing should be Bright skies, optimistic, progressive. Push the features, unique design, show the vehicle being used in life (kind of a mix of Subaru and Volvo). Give a longer warranty such as 8 years/80,000 miles which is longer than the other Stellantis brands.
That's my new position for the FIAT brand in North America, one that won't break the Company, if anything final create a low new investment path of a worthwhile specialty brand that hep meets fuel ecomomy standards.
Thoughts?
