2018 Fiat 500 to be Built in Mexico!

[Fiat500USA]

Just posted on Fiat500USA.com
We have just confirmed that the new 2018 Fiat 500 for the NAFTA region will be built at the Toluca Mexico plant. This is contrary to media reports saying that production would be shifted to Fiat's Poland plant located in Tychy. The Toluca plant has been the home of the North American Fiat 500 since its debut in 2010. It was widely speculated by the press...

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[aelfwyne]

That goes along with the leaked brochures that showed they were still planning to sell the old body style for the NA market, not the updated European body style.

Essentially they are spending as little as possible to keep Fiat running in NA. Federalizing the European car would cost more than just continuing to slap out the same old design from Toluca.

[SportLaserBlu]

it's a wise move, i like the classic styling with the updated electronics. the headlights in it now are an upgraded 1200.00 option in the euro models. we are still getting the best. the new motor might increase the value of the non turbos, if the demand is high enough. i remember when the E's hit the market, used ones were 6 to 7 grand, now they in the teens. the keeping the car the same, reminds me of the g wagon. classic

[Amacento]

it's a wise move... we are still getting the best. the new motor might increase the value of the non turbos, if the demand is high enough...

It may prove to be a wise move. We don't know what this means yet. What we do know is FCA does not see a strong enough market to refresh the 500 on our shores. This could negatively impact the already meh resale value. We are not "still getting the best". The 595 Abarth is far superior to our A500... power, suspension, materials and styling. The Fiat 500 S likewise is superior to the Fiat 500 Sport.

[ice445]

It basically confirms my suspicions. Production has been on hold while they retooled the plant away from focusing on this car, so whatever tiny production line is now available for this car will probably only do a dozen a day at most. They're just going to trickle them in to meet the low to non existent demand, simply to maintain the 500 in the registry for their CAFE MPG averages. FCA has the lowest of any company so they can't afford to axe this car entirely.

[rustbucket]

My two cents- it came down to the bottom line ... it was less expensive to keep building the 500 in Mexico in part due to NAFTA- iirc no tariff vs 2.5% if it was built in Poland. 2.5% may not sound like much but in this price sensitive class of cars there's not much profit margin to begin with so every dollar counts. Also, Toluca uses a FMS (Flexible Manufacturing System) which allows different platforms (FIAT 500, Jeep Compass, Dodge Journey/FIAT Freemont) to be produced simultaneously. Shifting production to Poland would be expensive and disruptive; continuing on with the current program is not. And if I'm not mistaken, labor costs are less in Mexico than Poland, a big deal in this class of car.

[Amacento]

My two cents- it came down to the bottom line ... it was less expensive to keep building the 500 in Mexico in part due to NAFTA- iirc no tariff vs 2.5% if it was built in Poland. 2.5% may not sound like much but in this price sensitive class of cars there's not much profit margin to begin with so every dollar counts. Also, Toluca uses a FMS (Flexible Manufacturing System) which allows different platforms (FIAT 500, Jeep Compass, Dodge Journey/FIAT Freemont) to be produced simultaneously. Shifting production to Poland would be expensive and disruptive; continuing on with the current program is not. And if I'm not mistaken, labor costs are less in Mexico than Poland, a big deal in this class of car.

Yes... and... the points ice445 and I made are also bottom line metrics included in your scenario.

[Tramonto]

Here is where FCA could learn a trick from Hyundai. What they do is upgrade many of the options, electronics, some suspension and some interior. This keeps the car fresh and allows them to move the new things over to the next generation. (if it aint broke dont fix it). They also concentrate on feeling in the holes where their line up has not got a fit. Another tactic that they have used (Veloster is example as of late) is to discontinue and then bring back yet teasing the whole time about the new one. This keeps the name in front of the potential buyer. I also think that the 595 should be brought over, but not as a standard Abarth but as an up scale with a twist on the name. That way there are two options. Bringing both the 595 and their Pick Up are two fast options that they could do with out breaking the bank. With so many trying to come back into the "midsize" Pick Up line Fiat is setting on a gold mine. Just my stink'n think'n.

[MJAB]

There is also the fact that U.S. dollar is weaker than, for example, one year ago vs. Euro was about 1.06 / 1.07 now is over 1.2, vs. Poland Zloty one year ago was about 0.24 / 0.25 and nowdays is more than 0.29 / 0.30.