Fiat plans to exit Europe's minicar segment
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Coronavirus Coverage
    • China
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • Working online to book COVID shots, office manager Billie Jean Pellet “typed so fast smoke came off the keyboard,” said dealer Earl Stewart.
      Dealership team hunts for vaccine
      Hope stalls for rebound in European auto sales
      Dana net income falls 53% in Q4
      Daimler hq Stuttgart web.jpg
      Daimler expects to recover production lost to chip shortage amid bullish outlook for 2021
    • Geely to create separate EV business unit
      Valeo, Faurecia outperform China market in 2020
      Hyundai to build hybrid, electrified commercial vehicles in Ziyang
      Daimler in silver
      Daimler CEO puts struggling EV brand Denza on notice
    • Detroit Aerial Panorama during sunset
      Developing future workers to fuel growth in mobility
      Getting around in Las Vegas often involves long waits for a crowded monorail ride, below, or taking escalators up and down to cross elevated pedestrian walkways along the Strip.
      Las Vegas offers best and worst in transportation challenges
      In pandemic environment, RV industry ‘roaring back'
      Where is transportation headed?
    • Electric vehicle recharger
      Consumers on the fence about EVs, J.D. Power says
      Joby
      Toyota's air taxi partner Joby to go public in $6.6 billion deal; firm hires Ford exec
      The Fisker Ocean electric vehicle on display
      Fisker to form EV partnership with Foxconn
      Motional moment: Driverless testing begins in Las Vegas
    • Elon Musk interview
      Tesla’s Model Y, on sale since March, is a showcase of EV technologies competitors will benchmark.
      Technologies of Electrification
      Cadillac’s Lyriq EV will be unveiled Aug. 6.
      Future Product Pipeline
      A CALL TO ACTION
    • Dealer lots could stay emptier long term
      Toshihiro Mibe is a veteran powertrain engineer, which has put him in close contact with the challenges Honda is facing.
      A return to tradition in Honda's new CEO
      Va. dealers pivot on emissions rules
      By hook or by crook: Hyundai, Kia system goes down
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Retail Technology
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Talk From The Top
    • Leading Women Network
    • Guide to Economic Development
    • PACE Awards
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls-Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Fiat Chrysler
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Maserati
      • Ram
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
      • Holden
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • McLaren
    • Mitsubishi
    • Nissan
      • Infiniti
    • PSA
      • Citroen
      • Opel
      • Peugeot
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Virtual reveals (Sponsored)
      • MITSUBISHI: 2022 Outlander
      • NISSAN: 2022 Pathfinder and 2022 Frontier
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
      • Detroit Auto Show
      • New York Auto Show
      • Los Angeles Auto Show
      • Chicago Auto Show
      • Geneva Auto Show
      • Paris Auto Show
      • Frankfurt Auto Show
      • Toronto Auto Show
      • Tokyo Auto Show
      • Shanghai Auto Show
      • Beijing Auto Show
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • China Commentary
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Gerry McGovern is right man to steer Jaguar reinvention
      Forget the Ford GT; Moray Callum's biggest hit is the aluminum F-150
      Nikon turns lens on auto factory, build quality
      Bosch_information_domain_computer web.jpg
      Bosch, Continental battle to supply the brain of the connected car
    • view gallery
      1 photos
      Chip Shortage
      view gallery
      8 photos
      Leo Michael Cartoons - Q1 2021
      Dealers hiring from hospitality sector
      view gallery
      1 photos
      Hospitality Hires
      view gallery
      1 photos
      No ICE, Please
    • Shifting gears away from the stick shift
      SEMA still a wonderful circus
      Penske still has plenty of races to win
      Ford's turn in the hot seat
    • February 23, 2021 | Reliability continues to soar
      February 16, 2021 | Apple looks to take bite out of automotive
      February 9, 2021 | ‘Super’ opportunity for automakers
      February 2, 2021 | GM is all-in on EVs but will consumers follow?
    • John DeMarco
      How to manage a downturn? Clues are in the data
      Cam Hitchcock
      Benefits remain clear for on-site used-car auctions
      Dave Versical
      The ad that has dealers fighting mad
      Dan Shine
      Optimism for the future despite crisis, change
    • Shanghai hints at how Chinese cities will pursue electrification
      How Tesla, GM transformed EV market in 2020
      Is sales recovery nearing an end?
      Beijing's uphill battle to boost EV sales
    • Taiwan Semicon microchips BB web.jpg
      Chip shortage shows need for new thinking
      Digital demands squeeze smaller auto retailers
      President Joe Biden’s move to electrify all government vehicles could push forward charging infrastructure development.
      Dealers aren't wrong to be wary of EV hype
      Economy needs assistance, but dealers do not
    • Buying EV without dealer is just easier
      Dealers are right to worry about EVs
      GM's move to EVs is move for stability
      Tundra engine may not be up to the job
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: Most buyers still undecided on EVs, J.D. Power finds
      AutoNews Now: Biden tackles chip shortage with lawmakers, order
      AutoNews Now: Kia aims to disrupt 'staid' minivan segment with Carnival
      AutoNews Now: Cherokee Nation to Jeep: Stop using our name
    • First Shift: Ford's Farley: 'We need to bring battery production to the U.S.'
      First Shift: Hyundai to replace EV batteries in $900M recall
      First Shift: Hyundai starts next-gen EV push with Ioniq 5 crossover
      First Shift: Ford idles two plants for weather-related parts shortages
    • COVID, chips and checks: Sales headwinds and tailwinds for 2021
      N.J. dealer helps position peers for ‘electric revolution’
      DCH Millburn Audi
      'Finding the diamond in the rough': How 2020's No. 1 dealership retains talent
      Don Johnson Motors
      'Distinctive culture' cuts turnover, carves career paths at Wis. dealership group
    • Why the pickup is the auto industry's 'battleground'
      Carlos Ghosn's quest to restore his reputation
      Why Ford must execute to avoid 'deep trouble'
      Why Honda is 'locked and loaded' for 2020
  • EVENTS & AWARDS
    • Events
    • Awards
    • Congress Conversations
    • Retail Forum: NADA
    • Canada Congress
    • Europe Congress Conversations
    • Leading Women Conference
    • Fixed Ops Journal Forum
    • ANE Shift
    • Shift: Mobility at a Crossroads
    • Shift: The Future of Mobility (CES)
    • 100 Leading Women
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealerships To Work For
    • PACE Program
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • AN Solutions
  • +MORE
    • Leading Women Network
    • Podcasts
    • Webinars
    • In the Driver's Seat
    • Publishing Partners
    • Classifieds
    • Companies on the Move
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Shift: A Podcast About Mobility
    • Special Reports Podcasts
    • Daily Drive Podcasts
    • AAM
    • Gentex
    • Reputation.com
    • Ricardo
    • Ricardo
    • Allstate: Want more from your F&I?
    • Ally: Navigating the future of automotive retailing
    • Amazon Web Services: Any place, any time, any channel
    • Amazon Web Services: The power of the cloud
    • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
    • Epic Games: Transforming the auto industry with digital assets
    • FTI Consulting: Crisis as a catalyst for change
    • Google: 5 trends shaping the auto industry's approach to a new normal
    • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
    • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
    • IHS Markit: COVID-19: The future mobility delusion
    • Level5: 2020 Automotive E-Commerce Report
    • Naked Lime: Bring social reputation together as part of big-picture marketing
    • Wells Fargo Auto: Switching gears from LIBOR to SOFR
    • Ally: Do It Right
    • DealerSocket
    • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
    • Facebook: The road to a zero-friction future
    • Guide To Economic Development
    • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
MENU
Breadcrumb
  1. Home
  2. Sales
November 04, 2019 06:26 AM

Fiat plans to exit Europe's minicar segment

Andrea Malan
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    The Panda was Europe's top-selling minicar in the first half but it may not continue in its current form.

    The Panda was Europe's top-selling minicar in the first half but it may not continue in its current form.

    MILAN -- Fiat Chrysler Automobiles plans to quit Europe's minicar segment, where it is the leader, joining other automakers in axing their smallest cars because of increasing development costs to make them meet tougher emissions limits.

    FCA CEO Mike Manley said the automaker plans to try to shift Fiat’s minicar customers to the "B" (subcompact) segment.

    "In the very near future you will see us refocus on this higher-volume, higher-margin segment, and that will involve a move away from the minicar segment,” Manley told analysts on FCA's third-quarter earnings call on Oct. 31.

    Manley did not give the timing of the move.

    The retro-styled Fiat 500 three-door hatchback and the Panda functional hatchback dominate Europe's minicar segment but they are aging and are due for replacement.

    The three-door 500 is 12 years old. It was launched in July 2007 with retro styling inspired by Fiat's original 500 launched in 1957, a car that became an icon. European sales of the 500 fell 9 percent to 100,150 in the first half of the year.

    The third-generation Panda went on sale in February 2012 and its sales rose 15 percent 105,534 in the first half, according to Automotive News Europe's sales by segment analysis.

    Manley did not give the timing of the move away from the minicar segment but industry insiders say it would be a midterm plan that would happen by 2024.

    Fiat is still expected to go ahead with the launch of its second-generation 500e battery-powered car. The car will be built at the Mirafiori plant in Fiat's home town of Turin with production starting in the second quarter of 2020, according to comments by FCA's Europe chief, Pietro Gorlier, in July.

    The retro-styled 500 could be too costly to renew to meet upcoming emissions rules in Europe.

    Europe losses

    FCA posted a 55 million euros loss ($61 million) in Europe in the third quarter.

    Manley told analysts that Fiat's "commercial challenges" in Europe stem from a very high exposure to the low-margin minicar segment, and a model lineup whose average age is "the highest in the industry."

    Fiat now plans to win back customers in the small-car (subcompact) segment it exited last year when the Punto hatchback was discontinued.

    The Punto had been Fiat's best-selling car in Europe for a long time but former FCA CEO Sergio Marchionne said its sales were not large enough to build a successor profitably.

    Fiat will aim to shift loyal minicar customers to subcompact cars while also keeping customers who still own a Punto, Manley said.

    The small-car segment is Europe's biggest and is "a much higher profit pool than the A (minicar) segment," he said.

    Manley did not discuss which new models Fiat will introduce in the subcompact segment. He also did not comment on the future of the Panda and 500.

    Fiat Chrysler outlined the challenges for its Europe,  Middle East and Africa region in this chart released Oct. 31.

    PSA help

    FCA's planned merger with PSA Group would give Fiat access to PSA's Common Modular Platform, which underpins the group's newest small cars such as the Peugeot 208 and Opel Corsa. These cars have full-electric versions as well as versions with internal combustion engines.

    Fiat also currently sells other cars that use the 500 name but compete in small-car segments. The 500L led Europe's small minivan segment in the first half with sales of 24,112. The 500X was the 10th best-seller in the small SUV/crossover segment.

    The 500L and 500X are underpinned by small US wide platform that is also used for the Jeep Compass and Renegade. The Panda and 500 use Fiat's mini platform.

    JATO Dynamics analyst Felipe Munoz said he doubts that Fiat will quit the minicar segment completely.

    Fiat might improve the content and pricing of the 500 and Panda hatchbacks "to have them play in the small car segment," he told Automotive News Europe.

    Fiat could also try to replicate the 500 hatchback formula with a slightly bigger car, he said.

    The Lancia Ypsilon -- sold as a small car but built on the same minicar platform as the Panda -- is an example of how this could work, Munoz said.

    FCA joins other automakers that are rethinking their small-car strategy in response to costly new European Union legislation covering safety and tailpipe emissions, in particular the output of CO2.

    Ford and Opel have already exited Europe's minicar segment. Ford is stopping importing to Europe the Indian-built Ka+ while Opel has dropped its Korean-built Karl and Adam models.

    Volkswagen executives have said privately that the automaker is preparing to drop combustion-engine versions of the Up minicar, which would almost certainly mean the fuel-powered Seat Mii and Skoda Citigo would also disappear.

    RECOMMENDED FOR YOU
    ‘Last roll of the dice' for a storied brand?
    Letter
    to the
    Editor

     

     

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    ‘Last roll of the dice' for a storied brand?
    ‘Last roll of the dice' for a storied brand?
    Hope stalls for rebound in European auto sales
    Hope stalls for rebound in European auto sales
    Europe sales plunge 26% in January amid COVID lockdowns
    Europe sales plunge 26% in January amid COVID lockdowns
    Any place, any time, any channel
    Sponsored Content: Any place, any time, any channel
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    See more newsletter options at autonews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Digital Edition
    Automotive News 2-22-21
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 2-8-21
    Read the issue
    See our archive
    U.S. SALES REPORT: Sign up for our quarterly newsletter and get U.S. sales data and news from the previous month sent to your inbox as soon as it's compiled.
    FIRST SHIFT WITH JENNIFER VUONG: Sign up for our morning newscast and get the news you need to start your day in a quick 4-minute video.
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Automotive News
    ISSN 0005-1551 (print)
    ISSN 1557-7686 (online)

    Fixed Ops Journal
    ISSN 2576-1064 (print)
    ISSN 2576-1072 (online)

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Retail Technology
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Talk From The Top
        • Leading Women Network
        • Guide to Economic Development
        • PACE Awards
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls-Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Fiat Chrysler
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Maserati
          • Ram
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
          • Holden
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • McLaren
        • Mitsubishi
        • Nissan
          • Infiniti
        • PSA
          • Citroen
          • Opel
          • Peugeot
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Virtual reveals (Sponsored)
          • MITSUBISHI: 2022 Outlander
          • NISSAN: 2022 Pathfinder and 2022 Frontier
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
          • Detroit Auto Show
          • New York Auto Show
          • Los Angeles Auto Show
          • Chicago Auto Show
          • Geneva Auto Show
          • Paris Auto Show
          • Frankfurt Auto Show
          • Toronto Auto Show
          • Tokyo Auto Show
          • Shanghai Auto Show
          • Beijing Auto Show
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Coronavirus Coverage
      • China
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • China Commentary
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • Congress Conversations
        • Retail Forum: NADA
        • Canada Congress
        • Europe Congress Conversations
        • Leading Women Conference
        • Fixed Ops Journal Forum
        • ANE Shift
        • Shift: Mobility at a Crossroads
        • Shift: The Future of Mobility (CES)
      • Awards
        • 100 Leading Women
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealerships To Work For
        • PACE Program
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • AN Solutions
    • +MORE
      • Leading Women Network
      • Podcasts
        • Shift: A Podcast About Mobility
        • Special Reports Podcasts
        • Daily Drive Podcasts
      • Webinars
      • In the Driver's Seat
        • AAM
        • Gentex
        • Reputation.com
        • Ricardo
        • Ricardo
      • Publishing Partners
        • Allstate: Want more from your F&I?
        • Ally: Navigating the future of automotive retailing
        • Amazon Web Services: Any place, any time, any channel
        • Amazon Web Services: The power of the cloud
        • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
        • Epic Games: Transforming the auto industry with digital assets
        • FTI Consulting: Crisis as a catalyst for change
        • Google: 5 trends shaping the auto industry's approach to a new normal
        • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
        • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
        • IHS Markit: COVID-19: The future mobility delusion
        • Level5: 2020 Automotive E-Commerce Report
        • Naked Lime: Bring social reputation together as part of big-picture marketing
        • Wells Fargo Auto: Switching gears from LIBOR to SOFR
        • Ally: Do It Right
        • DealerSocket
        • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
        • Facebook: The road to a zero-friction future
        • Guide To Economic Development
        • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
      • Classifieds
      • Companies on the Move
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds