NF500 / sergio marchionne

Fiat SpA CEO Sergio Marchionne has announced that orders for the new Fiat 500 had exceeded 57,000, a mere 20 days after it’s official launch even on 4th July.

During a broad ranging conference call held after Fiat reported that second-quarter net profit more than doubled, Marchionne said Fiat has an official target of selling up to 60,000 of the new 500 model in the calendar year 2007, and sounded buoyed by the early demand for Fiat’s new baby;

We’ve had an incredible response to the 500, both in Italy and elsewhere.

Marchionne also said the Polish plant where Fiat is making the 500 currently has capacity to produce 120,000 vehicles a year, but reiterated earlier statements from inside Fiat by saying that;

I hope that some recent efforts we’ve made to cut out bottlenecks can help raise output to about 140,000 a year.

The Fiat boss stated he was confident that operating margins for the car wouldn’t be negatively affected by ongoing wage negotiations with a labour union at the Polish plant where the baby Fiat is produced.

Acknowledging the plant’s central role in Fiat’s plans, the NSZZ Solidarnosc union is seeking a 100% increase in the basic monthly starting salary at the plant, and has threatened to organize strike action for September to press home its claim if negotiations fail to produce progress.

I’m not going to comment on wage increases. We will respond to the unions. We think we have ways to mitigate any extra costs that might arise. It shouldn’t impact profitability.

Said Marchionne.

Making the car in Poland’s low labour-cost economy allows Fiat to make more profit on the car than would be possible if it were produced Western Europe. During early negotiations with the Polish union held last week, Fiat agreed to pay workers new bonuses equalling close to €1m as it seeks to head off the risk of disruption.

It will certainly be interesting to see how Fiat manage both the wage negotiations and production capacity in the coming months.  Production in particular is an interesting dilemma, we already know Fiat plan to produce soft top and Abarth versions of the new Fiat 500, with talks of a Station Wagon and/or SUV being considered too.  These extra vehicles will surely generate more demand and interest, further testing Fiat’s ability to juggle supply and demand for a premium “tailored to suit” vehicle.

Fiat certainly have big ambitions for their small car.

At the press conference to launch the Fiat 500, Fiat CEO Sergio Marchionne was keen to emphasise Fiat’s strong commitment to be the global leader in CO2 emissions, stating that by 2012, the Fiat Group will have the lowest weighted average emissions of any other manufacturer.

Fiat is in the fortunate position in the small car sector of utilising engines that have a lesser propensity to emit CO2 and more importantly I think Fiat on the technology side is capable of mastering technologies which will make a contribution to technology…

Whatever the other car manufacturers do Fiat will provide the lowest weighted average emissions of any other manufacturers, and we are confident that Fiat is the only car manufacturer in the European car sector [to achieve this]. Not withstanding what others do, what Brussels does in terms of legislation, Fiat will have the lowest weighted average CO2 emissions

A bold statement indeed, but certainly achievable given Fiats already impressive position in the area of CO2.

But as if being the greenest isn’t enough, Fiat also want the new 500 to set new standards in mini-car safety. We’ve already reported how Fiat are confident enough in their new baby to declare it has class leading safety, but apparently not only are Fiat self assured of achieving five stars in the Euro NCAP crash tests (which would be the highest in the mini car segment), they’re already planning to retest the 500 when NCAP confirm specifications for six star crash results, and the company are reportedly fully confident of achieving a full six out six.

Automotive News have reported Today that the new Fiat 500, in Abarth form in particular, could well be sold in the USA.

This isn’t a new rumour, but when it’s Fiat CEO Sergio Marchionne who’s the one doing the gossiping, it surely adds some rather juicy fruits to the grape vine!

Apparently Marcionne has said he would like to sell an Abarth 500 in the US in competition with BMW’s MINI Cooper and Volvo’s C30.

The bad news is that if this happens at all, it wont be until at least 2010. Before Fiat can even begin to make this dream a reality they will have to get themselves back on track in the USA with the Alfa Romeo badge (who’s design team is now headed up by Frank Stephenson, who also lead the design team on the new 500).

Could the new 500 AND the new MINI Cooper prove cult smashes in the USA? Who knows, but we’d care to bet there’d be a lot of people excited by the prospect.

The new Fiat 500 has proved exceptionally popular, even before launch Fiat proudly proclaimed orders in excess of 25,000 vehicles.

Now Fiat CEO Sergio Marchionne has stated his aspirations for the little car, suggesting that the new 500, being launched Tonight (4th July), can be for the automaker what the iPod has been for Apple.

In an interview published in Wednesday’s La Stampa Marchionne, who openly seeks inspiration from successful companies, spoke of his admiration for the iPod’s cutting edge marriage of value, function, and style.

I want Fiat to become the Apple of automobiles. And the 500 will be our iPod

Fiat plan to sell 50,000 new 500s before the end of 2007, and analysts are suggesting that the new Fiat 500 will do as much (if not more) for the image of the Fiat brand, as it will do for the coffers of the Italian car company.