After 27 years, Fiat returns to US

August 31, 2010|Associated Press

DETROIT — Fiat is returning to the United States after a 30-year absence, and Chrysler Group dealers have to decide whether they want to sell the Italian brand. Initially, Fiat will offer just one model.

Yesterday, 400 Chrysler, Dodge, and Jeep dealers who want to sell Fiats were told that the exotic Fiat 500 minicar would be the only 2011 model in their showrooms.

Chrysler, which is now controlled by Italy’s Fiat, was short on specifics such as price and future models. A larger model was promised.

Chrysler hopes to sell 50,000 of the bulb-shaped 500s the first year. Eventually four versions will be offered: a standard 500, a cloth-top convertible, a high-performance version with up to 185 horsepower, and in 2012, an electric version.

Chrysler Group wants the 500 to become a strong contender in the US small-car market, where the Detroit automaker has struggled for years.

Dealers will be asked to build separate showrooms for the cars, in order to help create a European aura for the 500. Some dealers questioned whether it would be worth the investment, because future models were not unveiled.

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