Fiat Plans a 500 Hatchback, With More Room for Stuff

The Fiat Panda

Well, the Fiat 500 didn't exactly fly off dealers' lots but Fiat is hoping a slightly more utilitarian subcompact will have greater appeal to Americans. The Italian automaker, which owns Chrysler, plans to introduce a five-door model that's "related" to the 500 at the Geneva auto show in March. 

Might it also be related to the Fiat Panda? The Panda is a modest little peoplemover that has more space for your stuff than the 500, which barely has room for a spare pair of shoes.

The Panda sells well in Europe and many other markets around the world and might be a bit closer to American tastes. Then again, the geniuses at Fiat may have something completely different in mind. Financial analysts say the new model is being developed "specifically for American tastes," which can mean just about anything.

Mouse didn't roar

The 500, you'll recall, was going to be Fiat's triumphant return to these shores after an absence of some 30 years -- sort of a remake of "The Mouse That Roared."  The theory was that American car enthusiasts who have showered their love (and money) on BMW's Mini Cooper brand would be completely taken by the 500's pugnacity and self-conscious cuteness.

It didn't work out.  Only 26,000 500s were sold in 2011, about half what CEO Sergio Marchionne had predicted.  Heads rolled but the game is far from over, at least as Fiat sees it.

It didn't help, of course, that the 500 got a paltry three stars in federal safety tests for failing to adequately protect occupants in certain types of collisions. Of course, as the Costa Concordia has proven, size isn't everything and perhaps later iterations of the 500 and its related models will add whatever airbags and sheet metal are needed to satisfy the safety agencies.

The new five-door model will be sold in the U.S. starting next year.  It and the recently-introduced 500 Abarth -- a souped-up pocket rocket version of the 500 -- may help get customers trooping into all those new Fiat "salons" that dealers built to sell the revived brand.

Dealers, for the most part, say they're still betting on the future.  They expect that as new models are developed, Fiat's market share will grow until it rivals or surpasses the Mini, which also got off to a relatively slow start. 

The smart money is keeping its chips on the table. Major dealer groups including AutoNation snapped up Fiat franchises, analysts note.  AutoNation, which has owned Mini franchises since the brand debuted here in 2002, already has four Fiat outlets and is adding two more, according to Bloomberg News.