Fiat is once again Stellantis top-selling brand. Last year, it sold almost 1.27 million vehicles around the world, outselling Jeep and Peugeot, the other big brands of the group, whose volume totaled 1.04 million and 1.11 million units respectively. Fiat’s total was up by 8% vs 2022 thanks mainly to the good results in Latin America and Turkey.
In contrast to the general idea, Europe is no longer a source of growth for Fiat. Although it sold 39% of its cars in this region, the real drivers of change and growth are Latin America (Brazil) and Turkey.
Brazil
It has been Fiat’s largest single market for years. It has outsold the Italian operations 7 times over the last 10 years. The reason is quite simple: a consistent and constant product launches plan. Fiat is known in Brazil for its constant evolution which allows it to set the trends. It keeps introducing new vehicles despite to keep the attention from the public. With 472,500 units sold in 2023, Brazil made up more than one third of the brand’s global volume.
Turkiye
The reasons for the accelerated growth of Fiat in Turkiye in 2023 are different from the ones in Brazil. The automotive market has become a safe sector of the economy for those who don’t want to lose money for the devaluation of the Turkish lira. Many people are buying new cars because they can resell them at higher values. Fiat is the leader there and is not exempt from this phenomenon. Last year, Fiat sold a record of 193,200 units in Turkiye, or just 28,300 units less than what it did in Italy.
Italy
In 1997 Fiat sold 848,500 vehicles in Italy out of a global total of around 2.16 million units. It means that 39% of the cars it sold that year remained in its home market. Last year, the Italian volume of Fiat represented 17% of the global total. The drop from 39% to 17% in 26 years could be good news if it was the result of selling more cars abroad and keeping the good position in Italy. But it is not the case. Fiat’s lower Italian share in the global mix is due to a faster drop in Italy than the drop abroad.
Not in the radar
The problem here is the lack of importance that the headquarters give to the Brazilian and Turkish operations. When there is a new presentation about the future plans (one of the many PowerPoints we’ve seen), the focus is exclusively on Europe. Brazil and Turkey are barely mentioned when the top managers talk about the future of the brand. Why? Because there is a European mentality when managing the brand.
Brazil deserves more attention and decision making in the product planning. Its products might be designed for the Latin American consumer, but they are for sure an example of success that the European operations should learn from.
Fiat Group World 
Nice article and diagrams as always, Thank You Felipe!
It is sad to see the shrinking of Fiat in EU. IMHO there are several problems in here and maybe not all of them headquater’s fault.
I mean in summer of 2024 there will be new safety and cyber protection rules. Fiat has aging models, so they should to invest and you need money for this. Panda gets refresh, however 500 hybrid, Tipo and 500X not. According tot he news production of 500 hybrid will be moved to Algeria. Tipo and 500X may phased out. So What will remain? 500e, 600e and 600 Hybrid, Panda and no more personal car… Topolino is a toy for me not a real car (okay moped.). I am afraid what will be in the next years with Fiat models… 500e maybe bet ICE/MHEV version but is too late for it.
Maybe this wrong model development came from the rules of EU. EU said that every ICE will be banned and BEVs will be compulsory. The pollution emmissions should be held at low level. HOWEVER the deadlines always change, so the carmakers has to handle the present. They can lengthen the versions of their cars with ICE, and MHEV. And these types of cars are still cheaper than BEV version.
Furthermore I do not really know the incentives of BEV cars in EU countries, but I guess the incentives are diversificate and could not help reach real gain. BEV cars are still very expensive and it cannot compete against ICE and MHEV cars at price and range. Fortunately the people is not too dumb so the pay for what he/she needs. The success of Dacia shows me this. If a model has BEV and other versions the other versions are preferred. For example sales of Jeep Avenger: in 2023 28575 ICE version of Avengers were sold in EU and 12178 BEV versions…
As I saw the introduction of Fiat’s new global game in February, I got scared about the future. If the production of Tipo will be stopped in Turkey what will be built in Bursa? If the new model will be not a classic sedan could it be success in that area? What will cause the cars on common platforms in EU and in South America? There are lot of questions and I do not know the answers yet. The time will show them.
In Summary:
– The rules in EU is strict and the deadlines of the change-over often changes. I guess a car is developed for 6-7 years, so it is important to know the rules!
– BEVs are still not competitve. Once may be competitve but not in the present. Incentives distort the market.
– I hope because of the first 2 points Fiat cannot make a good plan, not the lack of decisions of headquater.
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Thanks for your input. Very valid points!
The strict rules imposed by the EU are not only applying to Fiat but to all the carmakers selling cars in Europe. Why is Fiat having issues and not the rest of brands? Simple: lack of product planning
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Nice article Felipe!
Good view.
The introduction of Fiat’s new global game in February, is the “the great escape” for Fiat…
As long as they stick to the plan or even make it happen sooner.
Fiat can’t sell only 2 or 3 models in Europe to survive. It needs a global range to be sold simultaneously in Europe, Brazil and Turkey. And keep trying to sell some models in USA.
Problems: Where is the successor for TIPO in Turkey? Producing only commercial vehicles might not be enough.
Big error: Not making an ICE 500E. 500E is a wonderful product, but there is no market for it in Italy. So it was a huge error not to produce an ICE version. It would sell like hotcakes.
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Thank you!
Do you think they will stick to the plan? I have my doubts!
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I would say Stellantis is not FCA…
but they already changed plans at Maserati…
But I think it was for “good reasons”, meaning if they had launched new Maserati QP this year, it would be most probably be techonologically outdated… sad but true… probably it was the best decision.
Next FIATs won’t need to be the most advanced… just to have the right qualities… so there is no justification not to stick to the plan. It would jeopardize its strategy in EU, Brazil ( Argentina, etc) and Turkye.
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Can you please tell me what the plan is for Fiat brand. I still don’t get it.
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Someone has an ideia… ¿Será Fiat la Dacia de Stellantis? Respondemos a esta pregunta / Review en español | coches.net (youtube.com)
I don´t know if Fiat will follow Dacia’s steps… some years ago the same could be said about skoda… I would say it should just be Fiat…and learn from this two successful examples.
Let us see if Olivier has a real weight in Stellantis structure and can aprove all those new models, both for Europe and South America, keep and expand the 500 – 600 family, and build something new in Turkey.
If it happens…
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Fiat does not know where it is going. Olivier has no idea either except for doing great TV spots. The 600 will be a flop. And sorry, what are the two successful examples from Fiat? 500 and?
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The two successful examples are Skoda and Dacia. Skoda started out a bit like Dacia, but turned into something better than VW….
I don’t know if you have any insight information about Olivier… but actually FIAT has become something ridiculous, especially in Europe.
The path however is very clear… to bring models that can be marketed simultaneously in several markets, namely in Europe and Latin America.
FIAT needs to get back to a full range.
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As it is written in the article, Fiat exists thanks to Brazil and Turkiye. And OF has very few knowledge about these two markets. He only cares about producing good spots.
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You are a little devil… 🙂
But I agree with you 🙂
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As a former employee I can guarantee you Fiat’s HQ in Italy simply hates the fact that they’re so successful in Brazil. The eurocentrism is absurdly high.
Even when results were bad in Europe, the Brazilian branch was the one who needed to cut costs to cover them. Meanwhile, profit margins in Brazil are 3x higher than in Europe.
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