Fiat, the Italian brand of the new Fiat Chrysler Automobiles, placed dead last in the new J.D. Power 2014 U.S. Initial Quality Study. The news all but ruins the chances for the brand, which has already struggled with little success in the American market, to make even modest headway.
Source: courtesy of Fiat SpA
The study examines how many problems new owners experience per hundred vehicles in the first 90 days of ownership. The lower the score the better. Top finisher Porsche had a score of 74. Fiat’s score was 206, well behind the other most poorly rated brands: Jeep (146), Mitsubishi (145), Scion (140) and Mazda (139).
Fiat management hoped that Chrysler‘s relationship with dealers and customers would help it reenter the American market. Fiat offers only one model, the 500, which has several levels of accessories and engines. The price of the base 500 Pop is $16,195. The high-end Abarth Cabrio is $26,195. With options, the price can approach $29,000.
Before the J.D. Power rating was posted, Fiat sales were already a disappointment, and just a small part of Fiat Chrysler Automobiles sales in the United States. The company’s total sales in May were 194,421. Fiat’s portion was only 4,771. Fiat is unlikely to sell a total of 50,000 cars in America this year.
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To make matters more difficult for Fiat, the 500 competes in a crowded portion of the American market, one dominated by many of the world’s brands. Toyota Motor Corp.’s (NYSE: TM) Yaris has a base price of $14,430. The Honda Motor Co. Ltd. (NYSE: HMC) Fit has a base price of $15,525. General Motors Co.’s (NYSE: GM) Chevy sells its Sonic for a base price of $14,770. Each of these companies has massive dealer networks, brand recognition and nearly unlimited marketing budgets.
Fiat’s efforts to enter the American market with any success have gone from improbable to impossible. Its small presence and lack of a well-known brand have been compounded by its new reputation as the most poorly built car sold in the United States.
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