TOLUCA, Mexico — The Fiat 500 started rolling out of the Toluca assembly plant here this week, the first step in the automaker's return to the U.S. market after a 15-year absence. Fiat President Sergio Marchionne, along with Mexico President Felipe Calder�n, were present as production kicked off on the Cinquecento hatchback.
The 2011 Fiat 500 will be the flagship for the Italian automaker's comeback to the U.S. market. Other Fiat and Lancia vehicles will be re-branded as Chryslers, Dodges or Jeeps. But Fiat intends to push its own brand through the 500 and eventually differentiate its cars from Chrysler's brands.
The challenge will be significant. The 500 is a tiny three-door hatchback with extremely limited space for rear passengers. Although it was clearly not designed for the U.S. market, the model has proven to be a hot seller elsewhere, especially in Europe and Brazil. Its fuel efficiency in a time of rising oil prices should be a selling point, and its retro styling could win it U.S. fans in much the same fashion as the similarly sized Mini Cooper.
Fiat announced it will produce between 100,000 and 130,000 vehicles a year for the U.S. market, as well as Mexico and South America. The Mexican government, through its development banks, Nacional Financiera and Bancomext, loaned $400 million at preferential interest rates so the Toluca facility could be retooled. In addition to the technology and internal resources of the Italian automaker, the assembly plant received a total investment of around $550 million.
Fiat assembled its first car in North America in 1910 at a plant located in Poughkeepsie, New York, which was idled not long afterward with the arrival of World War I. Fiat's footprint in the U.S. for the past century was weak and its distribution network was limited. The automaker pulled out of the U.S. market altogether in the 1980s.
Inside Line says: Whether we're ready or not, Fiat-Chrysler is gearing up to build the 2011 Fiat 500 in Mexico. — Loriana Marietta, Correspondent
The 2011 Fiat 500 will be the flagship for the Italian automaker's comeback to the U.S. market. Other Fiat and Lancia vehicles will be re-branded as Chryslers, Dodges or Jeeps. But Fiat intends to push its own brand through the 500 and eventually differentiate its cars from Chrysler's brands.
The challenge will be significant. The 500 is a tiny three-door hatchback with extremely limited space for rear passengers. Although it was clearly not designed for the U.S. market, the model has proven to be a hot seller elsewhere, especially in Europe and Brazil. Its fuel efficiency in a time of rising oil prices should be a selling point, and its retro styling could win it U.S. fans in much the same fashion as the similarly sized Mini Cooper.
Fiat announced it will produce between 100,000 and 130,000 vehicles a year for the U.S. market, as well as Mexico and South America. The Mexican government, through its development banks, Nacional Financiera and Bancomext, loaned $400 million at preferential interest rates so the Toluca facility could be retooled. In addition to the technology and internal resources of the Italian automaker, the assembly plant received a total investment of around $550 million.
Fiat assembled its first car in North America in 1910 at a plant located in Poughkeepsie, New York, which was idled not long afterward with the arrival of World War I. Fiat's footprint in the U.S. for the past century was weak and its distribution network was limited. The automaker pulled out of the U.S. market altogether in the 1980s.
Inside Line says: Whether we're ready or not, Fiat-Chrysler is gearing up to build the 2011 Fiat 500 in Mexico. — Loriana Marietta, Correspondent
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