Fiat is adding a new special edition to its Panda lineup. The Panda Trussardi is an upgraded version of the popular city-car that aims to become the luxury choice in the segment. In an event that seemed to be the presentation of an all-new car, Fiat and Trussardi showed the result of their collaboration.
The car is powered by the 1.2 liters petrol and 69 cv engine, with a starting price of 16,550 euro in Italy. More than the car itself, the important questions are: does the market wants a “luxury” Panda? and, what is the effect of these special editions?
The average retail price of the Panda sold in Italy (this country counted for 75% of its European volume) between January and September 2019 was 12,954 euro/unit. The new special edition is 28% more expensive. One of its goals is to temporarily become an alternative to the clients of the Punto, which was discontinued this year.
However, the Panda Trussardi is attacking the Ypsilon, which continues to be very popular in Italy with an average retail price of 14,357 euro/unit. Even if it incorporates some interesting stylish features , the Trussardi is nothing different from a more expensive Panda, a model that is better known as a popular car.
Special editions to increase average transaction price
One of the main objectives of the special editions is to make use of the current demand of a model and add new features in order to increase the average transaction price. Fiat has done it very well with the 500, which has had no less than 30 since 2007. The idea is to charge more to clients looking to have an edition that won’t be available for too long.
The other side of the special editions is related to the product planning. As there have not been a deep facelift to the Panda since its introduction in 2011, the car is certainly getting old. The brand needs to give it some oxygen and the easiest and cheapest way is by launching a special edition. Therefore, the Trussardi is another attempt to keep the Panda alive, fresh and in the news.
As the effort is relatively low in terms of time and money, the effects of this kind of marketing operations are also marginal. This is confirmed by the sales data of some of the special editions sold by Fiat during the least years. According to the source, in the best of the cases, the special editions counted for no more than 4% of the model’s total volume.
The effect is better outside Italy
Despite the low impact on sales, the best thing of the special editions is that they boost the operations in the foreign countries. According to the data, cars like the Panda Trussardi, Panda K-Way, Panda Waze, or even some special editions of the 500 have had a larger effect on sales in countries like Belgium, France and the UK, than in Italy.
This is a good way to give the dealers more arguments to tell the consumers when there are very few news. The problem is that unlike the 500, the Panda barely appears in the top ranking spots outside Italy. Moreover, more than special editions what the Panda really needs is a deep restyling or a new generation.
Source: JATO Dynamics