Exiting the bankruptcy, reopening factories, getting rid of 789 U.S. Dealerships, being welcomed into the FIAT family. What a great day for Chrysler. Or is it?
There have been excitement and high expectations about what would FIAT’s technologies and their implementations do with Chrysler’s model line-up and general well-being. The focus is on small cars, diesel and petrol engines using turbocharging or supercharging technologies, the latest mantra for power-hungry enthusiasts.
FIAT (and Lancia) left American market in 1984, Alfa Romeo made an exit 1995. The North American notion of FIAT remains associated with Italy’s sports car tradition and design. Then there’s the small car heritage triggered by the Cinquencento, Fiat 500, now represented by the it’s new reincarnation, the new 500 which, while incredibly cute, is also expensive and impractical, very much as the BMW’s Mini, clearly aiming at image-sensitive urbanites. And then there’s Ferrari…
However, having an image and the technology doesn’t necessarily mean that their realization and implementation will work. In case of FIAT, it doesn’t.
Despite recent improvements, FIAT struggles with quality and reliability, as much as Chrysler does. The latest JD Power and Associates 2009 UK Vehicle Ownership Satisfaction Study ranked FIAT 29th out of 29 brands (101 models were evaluated).
Chrysler ended up 28th. JD Power’s customer satisfaction studies are deeply flawed as they rely solely on customer’s subjective perception and rather unmeasurable evaluation attitudes. For example, a car owner who expected their car to break down 10 times during the first two years of ownership will be a satisfied one since if the car only broke 7 times. This is further underlined by the fact that Vehicle Appeal constitutes 37% of the overall score while Quality and Reliability make up only 24%. JD Power’s survey is based on mere 15,700 online interviews averaging about 155 responses per a model.
This is in sharp contrast with the traditional annual report conducted by the German industrial audit body TÜV and car magazine Auto Bild. The 2009 report was based on 7.7 million standardized tests. Only models with at least 10,000 tests were included in the result. Average mileage is also taken into the account.
What does it have to with FIAT and Chrysler? Despite radically different and significantly more relevant and scientific method, the best FIAT group’s car in the 2-3 years-old category is the Panda on the 90th place. The sole Chrysler included in the report is the PT Cruiser on 115th place.
Hardly a match made in heaven. In the takeover, FIAT may have an upper hand thanks to better technology and more money. But in the automotive world, success always comes down to the product lineup, it’s quality and reliability which, at the moment, neither FIAT nor Chrysler can offer. Adding rather peculiar US customer into the equation makes the whole FIAT-Chrysler marriage look like the world’s greatest automotive adventure. As they say, fiat voluntas tua…. thy will be done….
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