The likely end of an era at Fiat

Fiat has definitively stopped the production of the Punto. The current model, which debuted as Grande Punto in 2005, is no longer built. Various parties speculate about the successor. The Argo developed in Brazil may become Fiat's new asset in the European compact class. Yet the farewell of the Punto produced in Melfi marks the possible end of an era.

When it comes to Europe, the Argo is almost certainly not built in Italy. That is a cost consideration, part of the current FCA policy. implies that an era is coming to an end. It used to be unthinkable that Fiat would no longer produce its cars for this segment in the Boot. Those were other times when brands such as Kia and Hyundai were still unknown in Europe. Times, in which concepts such as WLTP and NEDC were still future music. Music, which has of course also had a major financial impact on the development of new cars lately. Take the fact that Italian protectionism has been outdated by European legislation for some time and you know: the world and the revenue models have changed.

Immense achievement from Marchionne

The late Sergio Marchionne is often accused of giving away the (European) market potential by not developing a new car for the B segment in time. However, Marchionne had other concerns, because when he took office he was challenged with the legacy of a billion dollar debt. From 2003/2004, Marchionne focused on making the Fiat group healthy. Under his leadership, the type name 500 experienced a revival, but Marchionne was confronted with the crisis at the end of the previous decade. However, under his leadership, the ailing Chrysler was taken over. And during the crisis he also ensured the careful resurrection of Alfa Romeo. Just before his passing it became clear that FCA was writing black numbers. An immense achievement, partly due to a fairly successful approach to the North American market.

No room for volume during a crisis

A European market with fierce competition and minimal margins entailed too many risks for Marchionne during the crisis. That is why FCA waited for the development of the (European) Punto successor, which had to be sold frequently in order to achieve minimal margins. FCA (in times of crisis) would never be healthy with that. The focus was on premium. With correspondingly larger margins. And on North America. Fiats' B segment was not a priority, despite its historical value. Still, with the expected crisis on the horizon at the end of 2016, FCA was working on the “five-door 500”. That has become the Argo, the cloth of which was removed in South America last year.

When the Argo comes to Europe ...

The Argo is therefore ready and can be brought to Europe reasonably cost-effectively. It will have to be adjusted before a possible introduction because of regulations that are contained in various cycles. In addition, he finds himself in a tough battle for the buyer. If the Argo comes to Europe and production volume is reserved for our continent, it will probably also start rolling off the band in Poland. And not in more expensive Italy. Although you never know with the Italians.

Fiats end of affordable volume

Fiats European role in the compact segment has changed anyway. With the farewell of the Punto, a long-running historic line of Italian compact car building is likely to be stopped. It is the timeline that emerged in 1936 with the arrival of the Topolino. Thanks to the 600, 850, 127, Uno and Punto, that line remained an important lifeline for Fiat for many years. A lifeline, which was also kept healthy through cooperation with various national (tuning, special body design) and international parties (licenses). And the car image of Italy helped determine.

History

The world has changed. It is the world, in which the Italian production of surprisingly affordable and versatile models in the B-segment line of Fiat probably came to a standstill. It had been in the air for years. With the departure of the Punto, Fiat has ushered in a possible end to an impressive period in the European automotive industry. It is the era in which Fiat demonstrated how design art, efficiency, space and dynamics went hand in hand with affordability. We must accept that that long episode is as good as history. And there is nothing else to do than to cherish this part of that beautiful and impressive Italian history. Regardless of whether the Argo comes to Europe or not.