Fiat/Chrysler

I saw this tiny car last night. It's a Fiat 500. According to Wikipedia, these little things were made from 1957-1972. It's all of 9'-10" long and powered by an aircooled inline 2-cylinder engine that, in it's most powerul form, puts out a whopping 23hp.

The lil 500 was so popular that Fiat has been making a new version of it since 2007:

It's grown a bit to a hefty 11'-8" and is now powered by a 75hp diesel engine.

You'll soon be able to purchase a Fiat 500 for yourself. As part of the new Chrysler/Fiat merger, Fiat will be exporting these things to the US. The question is, will American's want to buy them?

I was struck by the contrast of the tiny Fiat compared to the Toyota 4Runner that it's parked next to. The 4Runner is a mid-size SUV, and that size and type of vehicle is extremely popular with American car buyers. Compared to Europeans, Americans are larger people, we have larger families, we drive longer distances, and we haul more stuff. While a SUV may not be all that ecofriendly, a tiny car just won't be able to fill the needs of most American families.

Will some people purchase the Fiat? Probably, but I can't see how there will be enough demand for the thing, outside of a small niche segment. It's cute, and fun, but that segment is already filled by the Mini Cooper. Tiny car wise, the Honda Fit, and Toyota Yaris are much more reliable than the Fix It Again Tony.

Also, would you want to be on a highway, surounded by 18-wheelers, in a car that's less than 12' long?

I really don't see how this car will help save Chrysler. Unfortuately, with the government in charge of GM & Chrysler, they're working off the assumption that those two companies failed because they made SUVs instead of tiny putt-putt cars. However, the reality is that American's don't want the tiny cars. They want SUVs, pickups and mini-vans. Building cars that American's won't buy, will not help bring back the US auto industry.

However, now that the federal government is in charge, there will be an incentive to force success on these companies. This will of course come at your expense. Through a combination of carrots and sticks, you'll end up having to get a tiny car at some point. They'll provide tax incentives to purchase high-mileage vechicles, plus massive increases in fuel tax to force prices to $4/gal or more.

So, a Fiat is in your future, whether you like it or not.