ge5490241623357651572
Marton Pettendy13 Aug 2014
NEWS

Fiat to expand 500 range

Panda and Punto safe as Fiat lifts 500 prices and eyes 500L, 500X and other models, says importer

Fiat expects booming sales of its pint-size 500 to stabilise following the release of a more expensive upgraded model, but says the price increases were inevitable and will not affect sales of its other similarly priced light cars.

In fact, the Italian brand's Australian dealer network will continue to expand this year, in preparation for a richer mix of 500 sales, the potential addition of 500L and 500X models in the next 18 months and other all-new models to follow.

Fiat 500 sales have boomed in Australia since Fiat Chrysler Group Australia (FCGA) relieved independent importer Ateco Automotive of local Fiat distribution rights in May 2012 and then slashed base 500 pricing from more than $20,000 to just $14,000 drive-away in June 2013.

That led to a 376 per cent sales spike last year and a 100 per cent sales lift to July this year, when the 500 was the nation's second best selling micro-car behind the Mitsubishi Mirage but ahead of the Nissan Micra, Suzuki Alto, Holden Barina Spark and others.

In the past 12 months, more than 4000 Fiat 500s have found homes in Australia, compared to less than 3000 in the five years prior to that, since the born-again 500 arrived here in 2008.

Speaking at last week's launch of the mildly upgraded Series 3 model, FCGA President and CEO Veronica Johns said the 500's previous sales levels could not sustain a national sales network, which will expand from a current 61 to 70 by the end of 2013.

"It [the dramatic Fiat 500 sales increase] is misleading because we're offering a broader model range, but it couldn't stay at the volume it was," she said, adding that Australia's rapid sales spike had led to both a louder voice within Fiat and local waiting lists of up to six months.

"We're certainly a more substantial contributor now in terms of volume, which we haven't been in the past, so we get a lot more attention now. Last year when we launched we ran out of stock in 10 days. Factory support quickly improved that, but we're still trying to deliver cars to some loyal and patient customers."

Johns said new drive-away pricing across the range (the updated 500 line-up starts at $17,000 drive-away or $16,000 plus on-road costs – up from the $15,000 base price announced in June – but includes price hikes of up to $2100 on some models) would attract a stronger proportion of high-grade model sales.

"Drive-away pricing resonates with Australian buyers so it's now across the range. The [base] Pop was the top-seller, but we're now selling throughout the range. We'll see more orders for high-spec models."

However, she conceded that the previous $14,000 drive-away starting price was unsustainable due to currency fluctuations and would not reveal how much of an impact the price increases will have on overall 500 sales.

"The car has been well received but it's hard to say what the market will do," she said. "I was asked how long we could hold the [$14,000 drive-away] price when we announced it, but the Euro hasn't done us any favours, so we are where we are now..."

Fiat's Australian chief refuted suggestions the 500's higher $17K drive-away starting price would make tenuous the positions of both the Punto and Panda within the local Fiat line-up, given three of the four Fiat models available here are now priced within $1000 of each other.

The Punto was relaunched last August with a $16,000 drive-away starting price and has so far this year attracted 663 sales, making it Fiat's third best seller behind the 500 and Freemont 'urban crossover vehicle', while the Panda has found just 211 homes in 2014 after launching last October with a $16,500 drive-away base price.

"Pando and Punto are so different [to the 500]", said Johns. "They're not talking to the same buyer and we haven't had any crossover with them. They're niche but important models in the line-up.

"We don't want to be the 500 brand. Panda and Punto have a place in the Fiat range."

While Fiat also relaunched its Abarth brand in Australia last week, in the form of three new 500-based 595 models priced from $33,500, the next addition to the local 500 line-up will be the Abarth 695 Biposto.

Up to 10 examples of "the world's smallest supercar" – a two-seat hot hatch that outputs 142kW and weighs just 997kg – will arrive here in the first quarter of next year, potentially priced even higher than the $69,990 Abarth 695 Tributo Ferrari sold here in 2012.

Further afield, Johns indicated the five-door 500L people-mover was less of a chance for Australia than the 500X crossover, for which she couldn't hide her enthusiasm.

"500X is a car we'd be potentially very interested in – more so than the 500L. Australians love SUVs. You can never go wrong with them," she said.

Johns was guarded when asked if the Italian-built, Jeep Renegade-based 500X could become Fiat's top-selling model here and when, because it won't be revealed until the Paris motor show in October, but motoring understands it could arrive here as soon as early 2016.

Meantime, as we've reported, the local 500L business case depends on the availability of Fiat's new dual-clutch automatic transmission, which is now available in the US and could be fitted in European models as part of a facelift due for production later this year.

The five-seat 500L is expected to be followed by a seven-seat version dubbed the 500 XL, which could also be sold here by the end of next year.

"500L is not confirmed yet," said Johns. "We only relaunched the Fiat brand here on May 1. It's about getting it right, not getting ahead of ourselves. A five-door [500] could work. We're looking at the entire range. It's not confirmed, but never say never – We rarely miss an opportunity."

Although they were revealed in Fiat's five-year business plan, because they are not yet confirmed for global consumption Johns would not comment on the local prospects of a number of future Fiat models, including the potential Abarth-badged twin to Mazda's new MX-5 roadster due next year, a new compact sedan and hatch also due in 2015, and a compact SUV slated for 2017.

Share this article
Our team of independent expert car reviewers and journalistsMeet the team
Stay up to dateBecome a carsales member and get the latest news, reviews and advice straight to your inbox.
Owner reviews for Fiat Panda 2014
Average rating 4.81 review
Looking for a family car?Get the latest advice and reviews on family car that's right for you.
Explore the Family Hub
Family
Disclaimer
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.

If the price does not contain the notation that it is "Drive Away", the price may not include additional costs, such as stamp duty and other government charges.
Download the carsales app
    AppStoreDownloadGooglePlayDownload
    App Store and the Apple logo are trademarks of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.
    © CAR Group Ltd 1999-2024
    In the spirit of reconciliation we acknowledge the Traditional Custodians of Country throughout Australia and their connections to land, sea and community. We pay our respect to their Elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.