Chrysler Ousts Fiat North America Head Over Disappointing 500 Launch

Posted by Dale Buss on November 21, 2011 05:01 PM

She hired Jennifer Lopez, hit New York Fashion Week with Gucci in tow, put JLo in a Gucci-wrapped Fiat car, and even put a Fiat on stage with JLo in what's been called the most "brazen" product placement in some time. Fiat North America head Laura Soave also oversaw launch marketing for the 2012 Fiat 500 that channeled Elvis Presley, brought drive-in movies, bocce and espresso to Times Square and other cities — but none of it sold the new 500 in the U.S. market the way that Fiat CEO Sergio Marchionne had hoped.

So on Monday Marchionne ousted Soave and named a new head of the Fiat brand for North America: Timothy Kuniskis, who was director of marketing for Chrysler and Fiat brands and now replaces Soave as head of Fiat North America. Soave, meanwhile, is leaving the company "other interests," the company stated in that favorite of corporate euphemisms.

"Tim brings broad expertise and leadership in dealer operations and marketing where he has been already working with the team to shape the direction of the Fiat brand," Marchionne said in a statement. "As North American head of Fiat, much of his immediate focus will be working with the dealer body where his fresh perspective from the operational side, as well as that on the commercial side, will begtin the Fiat brand's next chapter."

Let's hope so, because the Fiat brand's first new chapter in the U.S. market — this year, after an absence of 17 years — hasn't made for upbeat reading. While Fiat-supervised overhauls of old Chrysler models have gone well for the most part and drawn American consumers back to Chrysler dealer showrooms, propelling Chrysler's robust increase in 2011 sales, Fiat hasn't fared nearly as well in wedging its peppy, miniature-sized 500 into the U.S. marketplace.

Fiat, meanwhile, is moving along, pushing the Arbath, its iconic 500 model that it revealed this week at the L.A. auto show (and on Jimmy Kimmel):

More about: Fiat, Chrysler, Sergio Marchionne, Fiat 500, Leadership, Jennifer Lopez, Product Placement, Endorsements, Gucci, U.S., Launches, Arbath, Jimmy Kimmel, L.A. Auto Show, Advertising

Ed Kriese says:

Of course she’s gone, she’s doesn’t know how to sell cars.

I’ve seen the stupid J Lo commercial on national TV where she drives a Fiat through Harlem and blabers soemthing about being inspired. News Flash; NO DRIVES FIATS IN HARLEM.

Until now I’ve never seen the cool Abarth commercials with the scorpions and cool black Fiats power sliding around race tracks and city streets. Why? Because women don’t know cars like men do.

Just because this chick was an Italian American didn’t qualify her to sell Fiats. Women don’t work on cars as teenagers and don’t know how to sell them as adults either. Leave it to the guys.

November 22, 2011 07:49 AM #

Lorne McMillan says:

Thanks Ed for the advice, sure Ms. Soave can use that. Rather than her gender getting in the way I see it as more of a seriously unrealistic target: she was asked to do 50,000 in sales of the 500 in the first year, and has done about 16,000 I think, with fewer dealers than hoped. No one, whatever the gender, is going to do that, bringing back a brand to the US that had a less than stellar image last time, in a recession, with only one model? Daft target in my view, her managers should, as usual, have known better.

November 22, 2011 01:38 PM #

Excuses, excuses. She sold 15,822 cars vs. a projection of 50,000 which she signed off on. Her stupid J-Lo Commercials accomplished nothing except to piss away hundreds of $millions. Soave was replaced by Tim Kuniskis. Good move too because he's going to introduce the Abarth model of this silly looking little car. Made in Mexico, there is nothing Italian about it save the name. Still Kuniskis probably knows what a connecting rod is and the difference between under and oversteer. I doubt Soave even knows how many cup holders the car has but no doubt got a generous severance package. Pathetic.

November 23, 2011 08:47 AM #

At least they got one thing right, and I'm sure it was some guys who thougth this commercial up and selected he talent. Guy's know how to sell cars. whoisthathotadgirl.tumblr.com/.../q-who-is-the-smoking-hot-girl-in-the-fiat-500

November 23, 2011 09:05 AM #

Susan says:

We rented the Fiat twice this summer and I can say, for Canada, this is not a car that is friendly to any weather except clear blue sunny skies. Cute car, but we were practically blown off the highway in a rain storm. The North American market is big trucks, big SUVs, and mid-size vehicles. I can't see how any marketing campaign for a small car can change that mindset.

November 23, 2011 10:31 AM #

Francesco Fazio says:

50,000 first year units was NOT realistic. They pulled FIAT out in the mid 80's, Lancia in 1982. No dealers, no distribution in 30 years and when they left, the image was not good.

The 500 is a great little car! I have one and rent it from Alamo all the time. Gas mileage is 31-39 and it handles great. The Abarth seems to be very impressive. But, without a complimentary model line and dealers well distanced from each other, it is not conveinent to see or get service. Is 20,000 units a decent launch? Don't know, but they only sold 750 Lancia's in 1982 before they pulled the plug.

Plus, their ad campaigns are frequent and except for a so-called J-Lo driving through the pits of da Bronx, they were all good. Hey, they start at 16K and average about 22K. For the money, its a much better car, both constructed and price, than the Mini-Cooper.

November 28, 2011 07:57 AM #