Fiat Goes for No-Haggle Pricing
According to Laura Soave, CEO of Fiat USA, "the price is the price." The first Fiat, the 500, is priced between $15,500 and $17,500. The cars go on sale this month starting at the company's Los Angeles dealership. The company will gradually open 130 Fiat "studios" across the country by the end of the year.The last car company that tried to stick to a no-haggle approach was Saturn, which parent company General Motors shut in 2009 as part of its reorganization. While the Saturn cars were not always so popular, the no-haggle pricing, while it lasted, was its central appeal.
Fiat is instructing dealers not to advertise prices below manufacturer-suggested-retail-price (MSRP).
The 500 hatchback is the first of a series of product introductions that Fiat plans over the next two years, including a "cabrio" and electric version of the 500 later this year, and Alfa Romeo models next year.
Fiat owns Alfa Romeo, as well as Maserati and Ferrari, and a 20% stake in Chrysler LLC. Fiat also controls the management of Chrysler. Fiat "studios" are being opened by Chrysler dealers.