Why Fiat continues to believe and invest in small cars

He is certainly not your average boring, grizzled top manager. Before Olivier François (1961) entered the car industry, he started a record label in his native France, which is probably why he later saw the opportunity to work for world stars such as Jennifer Lopez, Eminem, Sting, Shaggy, Clint Eastwood, Bono for advertising campaigns. and Bruce Springsteen for his cart. At home, he hooked up with Italian superstar Arianna Bergamaschi, with whom he has been married since 2014. So a man who can move mountains and be honest, they can use that at Fiat, once a brand with an extensive range and a huge market share.

Does Fiat still have a future with the current, limited range?

“The biggest problem that Fiat has to deal with is too many models. But they are regional models. In sales numbers, Fiat is the largest brand within Stellantis, ahead of Jeep and Peugeot. You are right that we have too little here in Europe, but we have too much worldwide. For South America we just unveiled the Pulse, which even gets an Abarth version, but we can’t do anything with that in Europe. The platform is not suitable and the engines do not comply with regulations; it wouldn’t work. That’s why we’re bringing everything back to one global lineup. If that is successful, we will have all the necessary models for here and for there.”

When can we see the first results?

“In the new year already, so very soon. You will already see a new model from us in 2023; not a variant of an existing car or special edition. Really something new. There will be another new model in 2024 and a new model every year in 2025, 2026 and 2027, all destined for three regions. This means that they will not only be available electrically, but also with a combustion engine. You should know that we are relatively big in the Middle East and Africa. Think of the Tipo in Turkey, where we have a 16 percent market share; that is more than in Italy. In Brazil we even have 22 percent. That is our strategy: to rationalize the range, fewer models, but more widespread and less fragmented.”

That excludes the new Stellantis platforms, which are purely electric after all

to be…

“Some Stellantis platforms, maybe some you don’t know about yet. We need multi-energy platforms to have a chance globally.”

How did Fiat get into the current situation?

“South America steers its own course with its own platforms, its own engines and its own factories. Here we only had the Panda, the 500 and the Tipo.”

Is the upcoming new Fiat already a Stellantis product?

“The 2023 model is the fruit of something we started working on early in 2021, so it was developed with the box of blocks we had at the time. But from 2024 you will see cars on Stellantis platforms.”

Can you already lift a corner of the veil on the models and segments?

“A tip. But I can tell you what you won’t see from Fiat anymore: big cars. We used to have the Croma, the Freemont and the Ulysse. We were in the D and even E segment. With Stellantis that would overlap too much. We focus on segments A, B and C. Period. And now you want to know which coach shapes, don’t you? That’s what I’ll tell you: just what’s relevant. That’s how Fiat has always been. Whenever Fiat had a hit, it was a model that touched people, something they were waiting for, even if they didn’t know it yet. Accessible transport, mega-small cars, scooters on four wheels, whatever. Maybe not the answer you were hoping for. But: small cars, smartly equipped.”

But the A segment is dying out and the B segment is also thinning out considerably, because they are becoming too expensive electrically…

“Awesome! Stellantis requires each brand to position itself clearly. A brand without a clear purpose will die, not only in our business. Without a ‘raison d’être’ you fall into commonplace, Chinese stuff, Ubers. That’s why we’re sharp with Dodge and have no problem with Ram. That is why Jeep must become a real Jeep again, but of course electrified. That’s why we’ve been in our stomachs with Chrysler for a long time; what is the added value? We are now starting to find a way in that. Fiat’s added value is simple, fun and accessible driving. That means A and B segment, but in our way. What if there is no more Fiesta or Polo to drive us into the wheels? Fantastic, because that’s exactly where we belong. We must dominate the B segment again and continue our domination of the A segment. Of course I know and understand why others are leaving this segment: it’s more challenging. The only highly profitable way to switch to electric is premium. You hide the terribly high cost of batteries with something that is already very expensive anyway. I admit that the Fiat 500e is not really cheap, even a touch premium, but otherwise we go for affordable electric. I have not forgotten the Centoventi (an electric concept from 2019 that was supposed to give an impression of a future Panda; ed.). That was my idea then. You have to think about that a bit. Making the cheapest EV, that’s my goal. Whether it succeeds remains to be seen, but that is my vision.”

The Panda now has a big beard…

“The Panda ages nicely. We keep it up to date with new infotainment, mild hybrid and 4×4 touches and people love it. I sometimes wonder if the automotive industry as a whole is missing the mark when it comes to customer acceptance of a longer life cycle. The assignment we received from Stellantis was to simplify the range. Per model a maximum of three versions, three engines and not too many colours. The Panda has one version and one engine; we are therefore much further ahead. Fiat can do just fine with one version, one engine and three or four option packages. And a few colors. I am seriously considering scrapping the color grey. A recession is coming and we are a happy, colorful brand, an anti-cyclical and anti-crisis brand. That is not yet the case for our 2023 model, but from 2024 Fiat will be simple, reduced to the essentials, basic but super fun at the same time.”

Those future Fiats will also be available as Abarth?

“Not all. It’s potentially possible, but we’ll see if it makes sense on a case-by-case basis. To look at it now: a Doblò Abarth would not be a good idea. We know from Europe that the Abarth label especially appeals to the imagination on the 500. The Punto Abarth was not so successful. A few years ago I wanted to build a 500X Abarth, but that didn’t happen, partly because we didn’t have the resources to develop it at the time. That would have been best. The sports version, which is purely in appearance, is very successful. That version was like a second childhood for the model. In fact, it was inspired by the Abarth that never came. I think all derivatives of the 500 concept are suitable for an Abarth version. You know, eleven years ago I was walking around with the plan for a Panda Abarth. That would have been a really nice car.”

Can the Abarth label within Stellantis also be seen separately from Fiat?

“No, I do not think so. There used to be Abarth versions of Lancia and Autobianchi, but that doesn’t make much sense for Lancia or Alfa Romeo now. The French brands would probably get the hiccups from Abarth. I would like to do business with other brands within the group, but frankly they don’t need me. At least that is the case, but they don’t know it themselves; kidding. Another option is to release your own Abarth model. We sometimes fantasize about that. That would be great, but it would also be a huge challenge to sell enough of that. You should not want to incur development costs for a model of which you sell less than 100,000 on an annual basis. Or you should think of a limited, rare model, such as the Alfa Romeo 8C. I can do that, but then I have to put a similar price tag on it. And that is not the Abarths.”

Suppose I gave you a bag of money to develop that unique Abarth, what would it look like?

“I like a new Fiat X 1/9. Or an Alfa Romeo 4C-like. Small and bloody fast. I would sell at most a thousand of them, but it would be a statement that puts Abarth on the map. However, I have my hands full with the Fiat derivatives. For example, I can imagine that the Panda Abarth that I once dreamed of will still come, but then electrically. On petrol, a Panda Abarth would incur high emissions taxes in our time. But if the Panda is electric, it is a serious contender.”

You called the 500e the anti-EV-EV and those are nice words, but still…

“I’m pretty sure we’ll get the wind from diehard Abarthisti, but I’m just as sure it will be a success. The 500th opens the door for new customers. I know a lot of people who want an Abarth because of the looks and the speed, but who don’t want noise and petrol smell. For now, we need to keep both options open. At least until Euro 7 puts our petrol models aside.”