DETROIT --- Fiat is coming back to the U.S. after a 30-year absence, and now Chrysler Group dealers have to decide whether they want to sell the Italian brand that initially will offer just one model, the tiny Fiat 500.
At a meeting in Detroit on Monday, about 400 Chrysler, Dodge and Jeep dealers who want to sell Fiats were told that the exotic minicar at first will be the only 2011 model in their Fiat showrooms.
Chrysler, which is now controlled by Italy's Fiat, hopes to sell 50,000 of the stylish, bulb-shape 500s the first year they arrive. Eventually, four versions will be offered -- a standard 500, a cloth-top convertible, a high performance version with up to 185 horsepower, and in 2012, an electric version, the dealers said.
Fiat-run Chrysler Group LLC wants the 500 to become a strong contender in the U.S. small-car market, where the Detroit automaker has struggled for years. The car will be sold by about 165 Chrysler Group dealers in 125 mainly big-city markets starting in December.
Dealers were happy for a chance to sell a small car, because they have had little to offer in the segment.
"There's no doubt about it. It's a home run," said Alan Helfman, vice president of River Oaks Chrysler Jeep in Houston.
Pricing for the 500 wasn't announced, but it's expected to be around $15,000. Dealers were told to expect profits of $1,200 to $1,500.
Dealers have until Sept. 22 to apply for Fiat franchises. Chrysler said it will pick its dealers in the fourth quarter.
Fiat last sold cars in the U.S. in 1983, but pulled out of the country after a string of quality problems wiped out any profits in the U.S. The car will be built in Toluca, Mexico.
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