The question is can they make enough money in a low margin sector with a car that isn't engineered to a similar standard to direct rivals to pay for better cars? Or will people prefer to buy a second hand golf or focus rather than a new fiat?
Well the idea of Tipo is precisely that. The Bravo had a wafer thin margin.. about £90 per car if I remember/read accurate information.
At the upper non-premium end of the sector cars "have" to have a lot of equipment and the equipment has to be sophisticated/be made of higher quality/more tactile materials just to be a contender.
You're then faced with achieving a competitive price point. VW were losing money on every Golf 5 (?) hence it was quickly replaced by a cheapened version 6... and Fiat's other perennial problem is that nobody buys Fiats in this segment. If Ford make £90 a car and sell a 500,000 cars that's less of a problem than for Fiat who might only sell 100,000.
The Tipo still has "equipment".. but it's ducked out of the Golf/Focus/Megane/Astra fight... because it simply won't sell, even if (like Bravo) it is just as good if not in many ways better.
Autocar panned Bravo for having blue stitching in the steering wheel.. which "would quickly get dirty"...
A Porsche Cayman in the same edition, with white stitching was obviously brilliant/didn't mention the stitching. Fiat won't win in this segment for a very long time. People just don't like it *enough*.
Anyhoo... Tipo seems to have just the more basic stuff in it and a few "highlight" gadgets enough to make it not too shabby... simpler design, less parts, slightly more functional/less plush materials... It's 3 times more profitable per car than Bravo, even at a lower price.
There's a good prospect for it selling over a second-hander. In an "uncertain" economic climate people tend to be more cautious/less ostentatious... but they still want a new car if they can afford it. The likes of Kia, Skoda, Citroen etc.. have all proved it works.
Ralf S.