NF500 / initial demand

Fiat have taken over 40,000 orders for the new 500 from it’s Italian dealers since order books officially opened at the beginning of June, reports Forbes Today.

Considering initial forecasts are for 58,000 Fiat 500s to be produced in 2007, and with predictions for 2008 total production already raised from 120,000 units to 150,000, you have to think that Fiat have already got a hit on their hands.

Now the careful juggling act becomes even trickier, as Fiat must consider the balance of supply and demand.  The possibility of delaying the launch of the new 500 in other markets has already been touted as a possibility if Italian hunger for the new model exceeds expectations, and then of course there are the pure logistical constraints at the plant in Poland, where further vehicles from both Fiat and production partner Ford will be in production next year.

On the other hand, Fiat must avoid over compensating in case the initial demand proves to be a fast bursting bubble, or if quality, which Fiat are pushing as paramount in their new ideology, and of which the Fiat 500 is the embodiment of, were to suffer at the expense of quantity.

Still, it’s a nice problem to have.  It’s incredible to think that just over 50 years ago there were only 40,000 registered vehicles on the roads of Italy.  The 500 certainly helped change that landscape first time around, and while the new 500 has much more modest ambitions, the initial impact has nonetheless been impressive.