Fiat Aims Low—and High

When it was first learned that Fiat wanted to merge with then-virtually bankrupt Chrysler earlier this year, a small amount of initial rejoicing could be heard from the design fanatics who wanted nothing more than to see the new Fiat 500 come to America. Forget the larger agenda, which now that the deal has actually gone through will include using Fiat small-car technology to engineer a new generation of gas-sipping Chrysler rides. No, for devotees of the 500, it was all about a new way to express personal style, somewhere between a VW Beetle and a Mini Cooper.

Fiat will not only sell the 500 in the U.S. beginning late next year, but by 2011 the Italian firm will commence manufacturing the car in America, as well. There will be a convertible along with a small station wagon in the lineup, a clear indication that Fiat is gunning to steal buyers away from BMW and the Mini, which is also available in multiple configurations. The basic hatchback should be priced somewhere south of $20,000.

Meanwhile, Fiat also wants to re-establish its Alfa Romeo badge in the U.S. A model like the 159 would be priced at around $40,000, placing it in BMW 3 Series territory. Eventually, there will be more Fiats and Alfas (there’s already a $230,000 supercar, the 8C Competizione), but the segmentation is interesting: low-end but ultra-stylish; and mid-luxury, but also ultra-stylish. The common denominator here is style, which Fiat and Alfa can do—and will be an essential selling point as Fiat brings its cars back to the U.S. after an absence of decades.