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Nuova FIAT 500X

Fiat has a lot riding on the tiny urban car, which was inspired from the 1950s original. Fiat sold almost 4 million 500s from 1957 to 1975, making the model a national icon as recognizable as Italian movie stars like Sophia Loren and Gina Lollobrigida. Fiat has sold more than 1 million of the larger, modern version since introducing the redesign in Europe in 2007.

 

Marchionne is effectively turning the 500 into a brand of its own: FIAT 500, FIAT500C, Abarth 500, Abarth 500C, Abarth 500 esseesse, Abarth 695 “Tributo Ferrari”, Abarth 695C “Tributo Maserati”, FIAT 500e Electric Car, FIAT 500L, FIAT 500L Living, FIAT 500X and more will follow. For instance the new FIAT500+ (a Fiat 500 with Five Doors to replace Punto Hatchback). The 500 has an emotional and aspirational value. The 500X crossover will be exported to North America from a plant in southern Italy by 2015.

 

Fiat Said to Spend $12 Billion for Made-in-Italy Luxury. In addition to bolstering the upscale Maserati and Alfa Romeo marques with new “Made in Italy” models, the carmaker will focus the Fiat line on variants of the trendy 500 subcompact and the budget-oriented Panda small car. Going upscale with cool, high-margin 500 and Alfa models is the only possible strategy to continue building cars in Italy.

 

As part of the luxury focus for Italy, Fiat will introduce 500 and Jeep sport-utility vehicles next year as well as a convertible version of the Alfa Romeo 4C sports car. Those cars will all be made in its home country.

 

The Fiat Punto, will be replaced by a five-door version of the 500. That mass-market model will be built in Poland to save costs and boost profit margins,

 

Fiat has furloughed many of its production employees in Italy this year and most of those have been off work for more than five months this year. The goal is to bring them all back by focusing on luxury Alfa Romeo and Maserati vehicles. Under the plan, Mirafiori workers will start making the Maserati Levante, the elite brand’s first SUV, by 2015.

 

Fiat’s strategy with the 500 brand makes a lot of sense. It’s an attractive looking vehicle and people who want it are willing to pay a little bit extra to get it. It’s a little luxury. Going upscale is the right strategy for a country with no cheap labor but highly skilled workers.

 

Marchionne’s turnaround plan calls for exporting upscale cars, including Maserati and Alfa Romeo models. The 500 is made in Poland and Mexico, and the 500L is produced in Serbia. The 500X will be built alongside a small Jeep at Fiat’s Melfi plant in southern Italy.

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Uploaded on January 3, 2014