Fiat Vs Scion

If Fiat plays its cards right It can sneak into Scion’s market share of simple economical cars but with a broader reach because Fiat markets to the general public. Will Fiat do what Scion should have done? Scion had a great marketing plan... Easy credit for young adults who only have summer job’s, easy cheap credit & easily seduced... The perfect candidate for a targeted market. But there was one flaw, They didn’t factor in the risk of easy credit going away & a recession. While Scion is in a pickle with millions spent at a target market that is now broke, Fiat is about to start & may knock Scion’s young hip position.

FIAT Coming to USA

Chances are Fiat will strike a deal with Chrysler, an exchange of small car technology for the right to use Chryslers factory’s to produce Fiat’s here in the USA and sell them here. There’s no doubt America loves Italy’s high end cars but the question is will they like Italy’s middle class cars?

We think this is a good deal both for Fiat and Chrysler. Chrysler is way behind in the game of small cars and frankly don’t have the time nor resources to develop the technology. Fiat has been wanting for quite some time to enter the American markets but didn’t have the resources or experience. Lets face it Fiat almost went under but the Brazilian market helped drag Fiat out of the hole and put it in good shape.

We strongly believe that high gas prices will be with us for a while. Yes, I know its cheap now (early 2009) but as the world crawls out of the recession they will be bringing high gas prices with them in their bookbag’s. There is simply no way around this its supply demand stuff... India and China are buying more and more cars putting more pressure on oil supply. Simply put oil exporters are producing oil at their limit and will sell to the highest bidders. You can believe what ever you want about some oil company conspiracy to make allot of money but the truth is every day Americans in New York were bidding higher for oil because other countries were also bidding higher. If they didn’t there would not be a shipment of oil.

Where does this fit in with Fiat and Chrysler? Well if your still wondering... I am implying the high gas price scenario will come back sometime 2010 - 2012 and Chrysler knows this, thats why they are are sketching a deal with Fiat.

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