Fiat recently released October sales for the U.S. market, and the results are disappointing. Fiat sales of the 500 and 500C dropped to 1965, a 71% drop in sales from September. Also, this happened in a month that saw sales increase for many automakers, including Chrysler. There are various reasons for the decline including the 500 losing its “new car” appeal and the dealer network being small, but I only want to point to one source: Jenny from the Block.

People barely know what car they are actually driving, so to raise awareness for an entire brand is a challenge. Because of this, first impressions are crucial. These first spots must communicate a laser guided brand focus and message. Do it right, and the positive afterglow will be attached your brand for years to come. Get it wrong, and the scarlet letter can hang around your brand no matter how many times you try to advertise away from it. This was Fiat’s moment to shine. They could have made an engaging ad that highlighted the many benefits of 500 ownership for both sexes. Instead they instructed an aging diva to gyrate hopelessly in front of the girliest version of the car available (for about 10 sec. tops), and run the spot almost exclusively during Sunday football. If Fiat was trying to make an impression that it could hang with the jock cars, it shouldn’t have worn a skirt to the homecoming game.

No car since the Ford Bronco has been tainted by association with a celebrity as much as the Fiat 500. And Fiat paid for this endorsement, Ford was just unlucky. On one hand, Fiat’s marketing push has brought the car to America’s attention, but with the wrong message, delivery, and execution. Ask any American about the 500 and they will know what it is. Shortly after that, they will retort with, “That stupid car J-Lo drives.” Try telling someone you are buying a 500 and watch them strain every muscle in their body to not laugh in your face. Because that’s what all jokes do, they make people laugh. But in this joke, the 500 is the punch line. The J-Lo spot has cemented the 500 as “That J-Lo car,” instead of “A fun car with big personality for little cost.” This is the biggest disappointment with the ad; the Fiat 500 is a great car, for a great price, but no one will see this because J-Lo is literally in the way.

Sales have reflected this. They were strong out of the gate as first adopters bought the car. Then, the second wave of sales would come if the ads were effective in attracting people unfamiliar with the brand. But they ads have failed in this regard and the sales reflect this. The 4 P’s of marketing must be used: product, price, place, promotion. Fiat only bothered to figure out the first three.

All is not lost for Fiat though. The testosterone fueled Abarth is just around the corner and it could be used as a launching pad to bring the entire 500 line some must needed respect from everybody. However, J.Lo will probably be in the ad, probably wearing some leather track suit, and Fiat’s public image will finally be cemented in failure, because it isn’t over until the fat lady sings.

November 16-17, at the Los Angeles Auto Show, one of the most anticipated cars of 2012 will debut. The Fiat 500 Abarth. Yes, you read that right. The Abarth is not a V8, RWD sports coupe or a trillion horsepower, billion dollar supercar, but the sporting version of the Fiat 500.

Powered by a turbocharged 4 cylinder engine, the Abarth should produce around 180hp, 10 more horsepower than the European version. Also, it only weighs around 2300 pounds, and will probably get close to 40mpg on the highway. This isn’t just eating your cake and having it too, it’s like eating the whole bakery and looking like Brad Pitt.

Not to mention, the Abarth name is steeped in racing history. Founded in the 1950s, Abarth started as an unofficial tuner for Fiats. However, they slowly began to be incorporated into the company to modify cars officially, and organize Fiat’s racing activities, from sports car racing to rallying. For reference, the M badge for BMW has only been around since the 1980s.

After its debut, the Abarth should be on showroom floors the first half of 2012. In these times of austerity, the Fiat 500 Abarth is a battle ax of fun to cleave through the continuing stream of boring cars.

You can view the rest of this story here.

Stay tuned to Dashboard News since this car will be among others in a post outlining the upcoming Italian automotive renaissance in the U.S.

Scion, the “Youth Brand” of Toyota, has priced their newest car for the American market, the iQ. The Scion IQ is set to hit our shores with a price tag of $15,995. The iQ is Scion’s version of the Toyota iQ sold in foreign markets.

Personally, like the Smart car, I don’t really see the point of this car at all. People buy city cars for style and/or frugality. The iQ posses none of these traits.

First, the iQ looks like the design they threw away while making the Toyota Yaris, which is no looker itself. Short, squat, and wide, the iQ is the exact opposite of how to make a pretty car. In addition, it is a Scion. This may be a plus if you consume bucketfuls of energy drinks per day, and wear flat-brimmed baseball caps, but if you are an actual adult, the Scion badge is a detriment. The iQ’s Quasimodo looks especially come to light when sat alongside the Mini Cooper and Fiat 500, its European competition, who have won a case full of international design awards.

Secondly, it is not frugal in the slightest. At $15,995 it is nearly the most expensive in its segment outside the better equipped and better looking Ford Fiesta hatch (the Fiesta sedan is cheaper than the iQ). The Mazda2, Hyundai Accent, and Fiat 500 all undercut it in price and all offer either looks (Fiat), value (Hyundai with its 10 year warranty), or driving performance (Mazda). Not to mention all these cars are larger and will not be mistaken for windup toys when pulling up to someone’s house for a first date. The most glaring flaw is that across the sales floor, Toyota offers the Yaris for around 13K, which is also larger and at least boring to look at instead of outright atrocious.

Finally, you may think that it gets fantastic gas mileage because of its small size and light weight (around 2100 pounds). Wrong again. The iQ gets only 37mpg highway. All of the mentioned competition, except the Yaris, gets more miles out of a drop of gas. Plus, The Yaris only gives up one mpg on the highway to the iQ while also being larger.

At the end of the day, there is no point to the iQ. It is a three year old, warmed over Toyota with a Scion badge that is not cheap, not frugal, and not pretty. The urban commuters the iQ wants to attract are too focused on fashion and badge snobbery to even make a passing glance at a Scion. Fuel misers will go right for more efficient offerings, and people shopping on price won’t buy it either. In fact, Scion’s targeted youth clientele may not buy it either since nothing about a rebadged Toyota that looks like a melted ice cream scoop screams youthful exuberance. The iQ is just another sign that the Scion brand is floundering for life. The car enthusiast’s only hope for the Scion brand is the upcoming FT-86.

From the Detroit News:

Detroit — Chrysler Group LLC will set up a separate dealership network to sell cars made by Italy’s Fiat Group SpA when they are reintroduced in the U.S. later this year.

The Auburn Hills, Michigan-based automaker said existing Chrysler, Dodge, Jeep and Ram dealers will get a chance to apply to sell the Italian Fiats, but they must be able to operate separate facilities with different sales and service teams in order to win a franchise.

Fiat, which last sold cars in the U.S. in the 1980s, will return to the country in December with the debut of the Fiat 500, a highly efficient, very European-looking small car. Other Fiat models are likely for the U.S., but the company has not made announcements beyond the 500, known in Italy as the Cinquecento.

Read the full article here.

From Car and Driver.com:

After showing a “design study” of an electrified Fiat 500 at this year’s Detroit auto show, Chrysler is confirming its plans to develop and market a battery-electric 500 for U.S. consumption beginning in 2012.

Chrysler and Fiat have previously said that the Americans will handle the electric vehicles for the allied partnership, and this 500EV will be the first EV from the companies. Before the two tied up, Chrysler had planned to build a whole roster of electric vehicles, beginning in 2010. Bankruptcy intervened and that plan appears to have changed.

Read the full article here.

We feel the barometer will be how well the Fiat 500 performs when hitting the showroom floors later this year!

We all know Chrysler won’t reap the benefits of its alliance with Fiat until 2012, but that doesn’t mean the cupboard is bare. To the contrary.

This year, Chrysler plans to introduce three new vehicles that are acknowledged leaders in their segments and one new model that gets it into a growing and potentially lucrative new market.

The first Fiat model, the 500, will also arrive, giving Chrysler dealers a sophisticated and chic little car that’s smaller and considerably less expensive than the Mini Cooper.

Read the full article here.

From AutoNews.com:

TOLUCA, Mexico (Reuters) — Chrysler CEO Sergio Marchionne said Chrysler will invest $550 million in Mexico to begin production of the compact Fiat 500 model car.

The investment will retool a production site developed by Chrysler, which emerged from bankruptcy in June under the management control of Fiat. The investment will allow the plant outside Mexico City to begin production by December, said Marchionne, who also heads Fiat.

Read full article here.

Fiat has already announced that they will bring the Fiat 500 to Chrysler showrooms in the U.S. in 2010, and now they’ve announced that the Alfa Romeo MiTo will also be available in America next year.

“The MiTo is going to help us re-establish the Alfa brand in the United States,” said Richard Gadeselli, vice president for communications of the Fiat Group, in a recent interview at the company’s headquarters here.

Though Alfa Romeo left the American market in 1995, the MiTo hatchback will not really be the first new Alfa to appear in the United States since then. The 8C Competizione and Spider have been available through select Ferrari and Maserati dealers since last year. Considering the stratospheric prices of the limited-edition, hand-built 8C, the MiTo will be the first new Alfa intended for general audiences.

Both the MiTo and the 500 will be sold at Chrysler — not Ferrari — dealerships, though they will still wear Alfa and Fiat badges. American-market prices have not been announced, but $20,000 or so seems likely for the MiTo and mid-teens for the 500.

The new Alfa is aimed at “an active, thrill-seeking, performance-minded 20-something.”

I think this is a great move by Fiat. The Fiat 500 and the MiTo will give Chrysler dealerships hip vehicles that appeal to younger drivers who like the Mini Cooper and other small imports. The marketing campaign should be fun to watch.