1971 Fiat 500 Cinquecento on 2040-cars

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Just 45% of Fiat dealers are profitable, and they're angry about it

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On average, Fiat dealers have only been selling about 17 cars a month.
We've been wondering for some time how Fiat dealers in North America have been getting along with just one model range in their showrooms up until recently. Franchisees spent millions building, stocking and manning sleek new 'studio' showrooms, only to have but a single model to sell, the cherubic 500. And even with its many derivatives, the Cinquecento is still an inexpensive model with its attendant lower margins. Perhaps it should come as no surprise then, that just 45 percent of US Fiat dealers are said to be profitable.

2014 Fiat 500L

Unexpectedly, This Opposite Attracts
Back in 2007 when the Fiat 500 was launched, I was unrepentantly nuts about the thing. From the first time my eyes clapped on the Nuevo Cinquecento at the Geneva Motor Show that year, I wanted one. Since there were no plans for a North American model at the time, I had to settle for purchasing a 1/18th-scale diecast at the expo. When Fiat finally returned to the US and the Cinquecento went on sale in 2011, I was no less excited.
And then I drove one, and the bloom was off my little Italian rose. Oh, I still appreciated its size and high style, but I found it wholly unsatisfying to drive, something that wouldn't be rectified until the Abarth arrived. It wasn't that the standard 500 was slow - I expected that - it was that its wonky driving position, lackluster transmissions and ropey steering all stood in the way of appreciating its other virtues. The Abarth's characterful powertrain would eventually come along to alleviate most of those pains, but not all of them.

GM, Ford, Honda winners in 'Car Wars' study as industry growth continues

General Motors' plans to aggressively refresh its product lineup will pay off in the next four years with strong market share and sales, according to an influential report released Tuesday. Ford, Honda, and FCA are all poised to show similar gains as the auto industry is expected to remain healthy through the rest of the decade. The Bank of America Merrill Lynch study, called Car Wars, analyzes automakers' future product plans for the next four model years. By 2020, 88 percent of GM's sales will come from newly launched products, which puts it slightly ahead of Ford's 86-percent estimate. Honda (85 percent) and FCA (84 percent) follow. The industry average is 81 percent. Toyota checks in just below the industry average at 79 percent, with Nissan trailing at 76 percent. Car Wars' premise is: automakers that continually launch new products are in a better position to grow sales and market share, while companies that roll out lightly updated models are vulnerable to shifting consumer tastes. Though Detroit and Honda grade out well in the study, many major automakers are clumped together, which means large market-share swings are less likely in the coming years. Bank of America Merrill Lynch predicts the industry will top out with 20 million sales in 2018 and then taper off, perhaps as much as 30 percent by 2026. Not surprisingly, trucks, sport utility vehicles and crossovers will be the key battlefield in the next few years, Car Wars says. FCA will launch a critical salvo in 2018 with a new Ram 1500, followed by new generations of the Chevy Silverado and GMC Sierra in 2019, and then Ford's F-150 for 2020, according to the study. Bank of America Merrill Lynch analyst John Murphy said the GM trucks could be pulled ahead even earlier to 2018, prompting Ford to respond. "This focus on crossovers and trucks is a great thing for the industry," Murphy said. Cars Wars looks at Korean (76 percent replacement rate) and European companies more vaguely (70 percent), but argues their slower product cadence and lineups with fewer trucks puts them in weaker positions than their competitors through 2020. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery 2016 Chevrolet Silverado View 11 Photos Image Credit: Chevrolet Earnings/Financials Chrysler Fiat Ford GM Honda Nissan Toyota study FCA