At this year’s LA Auto Show — which the press days are called Automobility LA for reasons — Fiat showed off a new special edition of its 500e electric city car. Called the Fiat 500e Giorgio Armani Collector’s Edition, the car leans heavily on Italian design and craftsmanship. The Fiat 500 has always been stylish, so it’s no surprise that this version kicks that style up a notch.
During the show, I had a chance to sit down with Fiat’s U.S. boss Aamir Ahmed and see where the brand is and how everything is going. The goal for Fiat in the beginning was to be a test market for a new way of doing things. These “drops” are something that Fiat is looking at closely for deploying in other markets. But it’s important to remember that the U.S. market isn’t a big deal for Fiat’s bottom line.
“Fiat sold 1.35 million cars last year,” Ahmed tells me. “It’s one of only three global brands to sell more cars outside its home market than within it.”
Ahmed also tells me how diversified Fiat is, with key areas being the Middle East, Africa, and even South America. Fiat isn’t just a European brand, either.
I’ve heard your feedback, though, and there are lots of rumors and speculation about what might happen to Fiat in the U.S. In some markets, for example, a gasoline Fiat 500 is coming. I’ve also heard many of you say that the Fiat 500e is just a compliance car for Stellantis.
“I don’t know why anybody would invest to make a compliance car,” Ahmed tells me. “Why would we continue to evolve a transportation object into something so beautiful?” He goes on to say that it’d be silly to him to spend the time and resources working on deals like this Armani car if the sole purpose of the car was to help meet an emissions target. He remembers the old Sergio Marchionne quote but insists that isn’t the case here.
He goes on to tell me while you might see things in different markets, including the Mexican market he’s responsible for, the U.S. market has its own goals and KPIs in determining success. Those KPIs, he tells me, are different across the brands and what might be a success for one Stellantis product doesn’t mean the same measure of success exists for him. He also reminds me that the cars sold in Mexico come from Brazil, which has different market objectives.
My main takeaway is you might see some changes happening in Europe, but don’t automatically assume they’ll be the same changes made in the United States.
Another takeaway is that Stellantis is sitting on a bunch of cash. The brand has a healthy PNL, and the stockpile of cash exists because of the cyclical nature of the business and the desire to be prepared for whatever happens.
“Carlos [Tavares] is smart enough to realize that this industry is very cyclical,” Ahmed says. “We had an idea that there was another trough coming.” He goes on to say, “I think we’re probably in a better position than some other OEMs, specifically, probably some of the large European OEMs,” when it comes to cash on hand, and handling its balance sheet in Europe.
As for Fiat itself, I’m not expecting any major changes anytime soon. Ahmed reminded me that without the tax credit — which only ever applied to leasing on the 500e — residual values have been higher. Plus the U.S. market really is different for Fiat than it is for any other brand.
Does that mean we won’t see a hybrid or gasoline-only 500 make its way to U.S. shores? It wouldn’t be hard to do after the company completes development. But I’d argue that the company doesn’t need to even do that at all. I believe anything is, of course, possible, but for the short term, I expect to see Fiat hold its course in the United States and Canada.
