It’s widely known that Fiat is struggling to sell cars in the U.S. at present. As per a report by CNNMoney, the Italian automaker has witnessed a significant 44% decrease in sales this year, casting doubts on its continued presence in the market.
To contextualize the current low sales figures of Fiat, in the first half of 2018, the company only managed to sell one-third of the number of cars it did during the same period in 2014, according to CNN. Referring to the latest monthly sales report from Fiat Chrysler, Fiat’s sales dropped by 36%, with only 1,426 cars sold in June.
One of the primary reasons contributing to this decline is the increasing demand among U.S. consumers for larger, SUV-type vehicles. Taking a look at Fiat’s current U.S. lineup, it includes models like the 124 Spider, 500, 500L, 500X, and the financially struggling 500e, all falling in the “compact to subcompact” category.
Furthermore, Fiat may encounter additional challenges due to the potential tariffs that the Trump administration is considering imposing on vehicles manufactured outside the U.S. To give some insight, the Fiat 500 and 500e are produced in Mexico, the 500L in Serbia, the 500X in Italy, and the Mazda Miata-based 124 in Japan.
“Observing the sales figures, one may question the rationale behind the brand’s continued presence,” remarked analyst Rebecca Lindland from Cox Automotive to CNN. Despite speculations in the past that FCA head Sergio Marchionne might announce Fiat’s withdrawal from the North American market as part of the company’s five-year strategy, no such announcements have been made as of now.
Upon reaching out to Fiat Chrysler for comments, a Fiat spokesperson reiterated the company’s plan to allocate 25% of its future investments to Fiat, Chrysler, and Dodge. These three brands are anticipated to jointly contribute around 20% of the total net revenues. The spokesperson also highlighted Fiat’s intentions for electrification, including the introduction of a fully electric Fiat 500e, alongside hybrid variants of the 500X and 500L, forming a completely electrified Fiat 500 lineup.
