(G) Have Fiat Got It Wrong?

Prompted by this thread, I thought it would be interesting to see how many unsold 500s were in the UK, so this morning I compiled this list:

The thing that stands out most from those figures is that the 1.4 16v is not selling anywhere near as quickly as the other engines, but what they don't show is that the majority of the unsold units are either highly-specced (and thus more expensive) or 'unusual' models that just aren't selling well.

Having that many unsold units available despite the three month lead time on a factory order says to me that Fiat have indeed got it all a bit wrong!

When the MINI was launched in 2001 the only unsold cars in the country were showroom models, and dealerships wouldn't sell them because they knew they wouldn't be able to replace them for up to nine months. MINI knew that everyone would want to create their own personalised car, so they made sure people knew exactly what models/engines/colours/options would be available, and what it would cost them, months before they started production. Unsurprisingly, they didn't have hundreds of unsold units sitting in compounds only three months after the launch whilst they struggled to build the cars buyers actually wanted, so why are Fiat having that problem?

My view is, had they released full specifications and pricing, and made demonstrators available, months instead of weeks before production started to find out what people actually wanted (basically 1.2 Pop and 1.2 Lounge are by far the biggest sellers) they would have built up enough orders to fill the production capacity in advance, and there wouldn't be any unsold.

But hey, what do I know?

So, if anyone out there is thinking of buying a 1.4 16v Sport or Lounge in a dark colour (the majority are Pasadoble Red, Calypso Orange, Mod Blue and Punk Grey) and is flexible on the options there's a car out there ready for you to drive away within a few weeks. And I hope you enjoy it whilst those thinking of buying a 1.2 Pop or Lounge have to wait!

You should have a column in a newspaper. Very insightful interesting read.

Why thank you sir

(I notice you're not saying whether you agree with me or not though? )

Could it be the 1.4 isnt selling that well because of its thirst for fuel compared to the others? Also, it gets a fair bit of slagging off in the press too, whearas the other engines dont. I never even considered the 1.4 for a second, purely because of the fuel consumption and higher tax band.
I dont really think Fiat got it wrong, but here in the UK there are many people who just wont touch a Fiat, no matter how good it may be... if this car was made by VW, BMW, toyota etc it possibly would be selling exrememly well?

My dealer has a yellow Sport 1.4. A couple of months ago I was told it had sold. Not so, it was still there, unsold, yesterday.

There is a red Lounge on the floor too, I didn't check the engine.

Now, for me the yellow Sport is the one to have (I don't really like the chrome and the yellow paint contrasted with the dark glass is very stylish), but I would want the added utility of the split rear seat (extra), and the 1.2 engine. Under no circumstances would I now buy the large motor, and your statistics seem to suggest that my calculations are general.

I say calculations, because I'd really rather like the Diesel, but at £1400 more, and with Diesel fuel now so much dearer than petrol I no longer believe Diesel is economically viable on such a small car - unless the purchase price was identical.

Many of these cars are bought by/for kids, for whom insurance matters, hence the small engines, and now, with fuel prices only going one way - trust me - the luxury of the 1.4 and its highish thirst is not something many people will want to buy into. Come sell-on time the small engines will have premium value too.

I think Fiat have cocked up a bit here. The models and options are confusing to disentangle, I mean, boot light on Lounge but not Sport - why? This sort of minuscule differentiation is more annoying than useful and must cause some punters to just walk. Also, there are other small cars coming to the market, admittedly without the charm of the 500, but with more practicality and better guarantees, for less money.

The market is getting very competitive. When Fiat introduces the twin cylinder engines with, I hope, greatly improved fuel consumption and improved performance to boot, with perhaps a re-jigged and clearer model specification, the 500 will finally deliver on its promises.

However, I'd be interested to know how many big, and not so big, engined cars from other manufacturers are now sitting in fields while putative punters look at the price of fuel, and their bank balances, and ask themselves if buying that new car is really such a good idea.

I think Scrogg's post makes it clear where things went wrong, basically they had to start producing cars to fill the production line as enough customer orders hadn't been taken. With most cars that would probably not be a problem but the 500 is so customisable that it is unlikely for a customer to find the exact spec they want sitting in a forecourt, some lucky ones will, our car had actually been preordered and was exactly what we wanted.

I also think the price of fuel will have a big impact this year. Now that we have broken the £1.00 per litre barrier fuel seems to be on a steady upward rise and lets be honest its unlikely that its ever going to fall dramatically. It's one of the main reasons we are downsizing from a 2.5 Volvo to a 1.2 500. My heart tells me I should be buying the 1.4 but I've gone with my head on this one knowing that I have the Caterham in the garage to take out when I need my driving thrills. I also think that the impending Abarth will mean that people who might have bought a 1.4 will hold out for the hotter version. If I had persuaded myself to go for the 1.4 I would probably have held off for the Abarth.

From the figures it also looks like people are beginning to see that diesel is not necessarily the most economical option over the life of the car. Having driven the 1.2 now....yesterday.....I am glad I chose it over the diesel. It is much smoother and its nippy enough around town and happy to cruise at 70 on the motorway. You have to stir the box a bit more but I'm a petrolhead so don't mind that.

One last question, I know some dealers are making customers aware that there is stock most of the ones I've spoken to make no mention of the fact, simply that it's a 3 month wait......perhaps a bit of publicity about cars being available now might bring in some customers who weren't prepared to wait for 3 months.

I agree that fiat got it wrong. They should of released prices much earlier and i found it very difficult to even find a paper brochure. The online configurator is good but sometimes you want a hard copy.
I also think the 1.4 sport and lounge are just too expensive to start with. Even our 1.2sport was a bit expensive for a small car and we only had a couple of options ( got it in ten days though becuase it was a stock car and the only thing we did'nt get was the chrome kit).
No wonder people are not buying the 1.4's in stock. You are just not going to spend £11k plus for a small car that might options you don't want and not one's you want. For the price of a specced 1.4 lounge/sport you could buy a bravo,ok a low spec model but it's still a spacious family car.
Saying all this I think the stock will steadily drop once fiat get more new orders through.
I am not too sure the 500 should be compared to the mini as much as it is because they are in completely different price ranges, however if mini drivers start to switch maybe they will go for 1.4's after coming from a 1.6

I think half the fun of choosing a 500 is that you can decide what YOU want rather than going to the dealer and being told its that,that or that! I know that I had hours of fun/dilemma choosing the colour and spec that I wanted, it makes it more personal and even if it meant having to wait I think the majority of people would far rather do that than get one thats 'ready made' , How many other cars can you buy with so much choice?? It makes my Bibi unique(well nearly lol) and when she gets her makeover I think she will be fantastic, this is the first car that I have felt like this, so I can understand why the 'readymade' ones arent selling, you just dont get the same ......Buzz!!

Agreed (nebrog). And the Bravo comes with a five year guarantee - doesn't it?

Still; different car, different market I suppose. Otherwise we're off on the 'let's spend a bit more for a bit larger car' route, which can be tempting

But I do wish Fiat would just tidy themselves up and offer a full five year guarantee on all their products and be done with it. The idea that Fiats are cheap and therefore you can afford to take a risk is a myth as far as I am concerned, since the Koreans seem to offer equally well made and specced cars for similar prices, with good support and great guarantees.

This year will see the car makers become very competitive indeed I reckon as punters just hold off from buying much at all. It looks like a true recession is on the cards, something many younger people have never experienced and many of their parents have forgotten. Fiat should do better than most, but they could do better still if they were cleverer.

How about a Pop, with added A/C; anyone got one?

Only at list price through a Fiat finance scheme.

There you are then - more conditions.

I can see why of course, they are terrified of discounting.

as far as small cars go, the 500 is one of the most expensive but I would say top of the class so worth it. Cars like the clio and fiesta arn't really small anymore.
I suppose fiat didn't get it wrong but they could of done it better by sticking with the 5yr warranty that was supposed be on offer and being a little more organised with the launch.

1.4 would be my first choice (especially if air con fitted) then the 1.3 then finally 1.2.

I used the MINI comparison purely because it is the only other mass-produced car available that is personalised to the buyer, not because they are 'competitors' to each other.

my two cents for what its worth

Main reason there are so many unsold is that they arent selling as much as predicted - yes it sounds obvious but someone predictions were wrong, the supply was geared for a predicted demand based on what ? (market research, guess or fortune telling who knows) but they arent many around on the road and word of mouth counts hugely in fashion. Everyone I meet says "wow lovely car what is it" then "Oh a Fiat" then "How much!!, its nice but not that nice You can buy two (insert small car here) for that" !

So untill it either attracts a cult fashion must have like the Mini or its price drops it will remain and expensive small great looking car at a time where needs must and value for money is king. The 500 is neither VFM nor a cult fashion statment. YET.

All I wanted was a classy small economical cheap to run car and I had to pay through the noise and wait 18 weeks to get it. My diesel is doing 60pmg with 400miles on the clock its broken down twice but nothing has fallen off and despite the jibes at work I can see no rust YET. Theres no 5yr warranty yet and its price is still non negotiatable.