Jesus christ this is painful to watch.
Coming back to
babyferrari 's point, I've been thinking about this, and I think it may be a (much) more widespread issue than we see on here.
One thing that sticks out in the last few weeks especially is that FIAT are desperate to avoid giving out replacement cars at any cost. From
dcs1 's experience, this policy has been firmed up recently (odd if an update is nearly ready).
I can only conclude that FIAT (UK or internationally) are worried about the floodgates opening if replacement cars are issued.
Let's say for a minute that "only" 50 cars are affected (still far more than we've had on here). Let's assume that they're all pretty bog standard pops, with a couple of extras- 10 grand retail (keeps the numbers round).
Now, you might say "Ah, but that's half a million quid's worth of car you're writing off by issuing replacements".
Retail price, yes, but FIAT UK won't pay anywhere near that. How much they do pay, I don't know. IIRC at launch dealers were on 6% margin (on a 3% + 3% satisfaction basis), so let's say FIAT UK buy them at 70% retail (so are on a 24% margin after dealer margin- that's very, very narrow )- 7 grand a piece. For a start, I suspect dealers are on (much) more now. Hell, we know 3 grand is an achievable discount. No way you'd ever sell even a pre-reg at "factory door" price.
Anyway, let's run with it. Now we're at £350k.
However, this assumes that the rejected cars go straight into a crusher, which there's no chance of for an issue like this. Maybe they'd get offered to dealers at a big discount as "showroom only" cars or FIAT UK would use them as show cars, after which they'd be stripped for parts (even if you're only pulling the wheels/tyres/interiors you're down to a few grand cost per car). The 500 is old enough that the secondhand parts market must be thriving. Maybe that's not realistic but you would think FIAT UK could find something to use them for.
That would be chump change.
With the update being imminently available the whole "don't issue replacements" policy looks even stranger- if you had any confidence in the update you'd be tripping over yourself to get replacements out to those that have pushed for them (because, as they're showing, these are the people that can cause the brand the most damage) and taking the old cars back. Apply the update to them and flog them on through the approved used channel. Job done, and you're probably losing 2 grand per car, if that. But saving a lot more.