Last week, Fiat Chrysler Automobiles introduced the new Fiat 500X at the Los Angeles Auto Show. A companion vehicle to the Jeep Renegade
in the lineup, the 500X is a new crossover for Fiat and it should bring
fresh traffic and more sales to dealer showrooms when it arrives here
next year.
Both the 500X and Renegade are produced by the FCA plant in Melfi, Italy and share about 40% of their components. However, the two are aimed at different audiences, giving FCA the unique advantage of having a pair of contenders in one of the hottest market segments.
Small crossovers and SUVs have been on fire in the first ten months of 2014. Sales are up 30.6% compared to the same period in 2013 compared to overall industry growth of 5.5%.
The Kia Soul has been the sales leader through the end of October, but sales of the Buick Encore are up 55.3% and those of the Subaru XV CrossTrek have grown 39.1%. The Nissan Juke is the slowest-selling model and sales tumbled last month but year-to-date deliveries of the Juke have risen 7.5%.
The four vehicles have accounted for a total of 261,173 sales in the January-October period and market share has grown to 1.90% from 1.54% a year ago.
Along with the Encore, Soul, Juke and XV CrossTrek, the new FCA utes will go up against the new Fit-based 2016 Honda HR-V and the 2016 Mazda CX-3, which shares a platform with the Mazda2. The HR-V is due about the same time the 500X hits the U.S.; the CX-3 goes on sale in Japan in the first half of next year, but its arrival date in North America hasn’t been announced yet.
One big advantage for FCA is that the small utilities are expected to pull more sales from subcompact cars, where the company is not a big player, than from the larger crossovers and SUVs that count for a majority of FCA sales in North America.
In an article on the subject, Bloomberg News quoted KBB.com analyst Akshay Anand as saying, “Gas prices are contributing to the demand, but I think you’re seeing consumers shift more toward want-based shopping as opposed to need-based. That says consumer confidence is up and folks feel more comfortable with where they’re at.”
In the same article, Jim Lentz, president of Toyota Motor Sales, said buyers are looking for a little more room; a little more versatility. Lentz added that what were once smaller SUVs, like the Honda CR-V and Toyota RAV4, have gotten a bit large.
It’s also worth noting that the current crop of small utilities have also gotten a bit more costly. A new Honda CR-V starts at $23,320 and a Toyota RAV4 has a base MSRP of $23,680. Compare those prices to $15,100 for a “stripper” Kia Soul or the $20,250 sticker price for a base Nissan Juke (prices do not include destination charges).
