Fiat shares fall in Italy on news 500's U.S. sales unlikely to meet goal

[LeadFoot]

Shares in Fiat SpA tumbled in Italy on Tuesday, in part because of reports that North American sales of its flagship 500 subcompact will fall short of the company's targets.

But Chrysler Group LLC, which sells Fiat in North America, is introducing a variant to cement the 500's reputation as a trend-setter. On Sept. 8, it will introduce a Gucci model at Fashion Week in New York.

The special editions of the Fiat 500 and 500 Cabrio are a collaboration between Gucci Creative Director Frida Giannini and Fiat's Centro Stile.
"With Gucci as our design partner, we've amplified the Italian style of our Fiat 500 with unique exterior and interior looks that will make the car truly unique on the road," said Laura Soave, head of the Fiat brand in North America.

Last week, Soave acknowledged that Fiat will fall short of its full-year North American sales target of 50,000 vehicles. As of the end of July, the company had sold fewer than 12,000.

She said it had taken longer than expected to get Fiat's dealer network up and running.

"We have coverage now, so now is the time for us to turn this up," Soave said.

Fiat shares fell 4.26 percent Tuesday as investors worried that CEO Sergio Marchionne might have overstated the opportunities for the brand in America.

The Gucci editions will go on sale at Fiat dealerships nationwide in December, along with an array of driving accessories by the Italian designer. Pricing has not yet been announced.


Bryce G. Hoffman/ The Detroit News