Fiat Finishes Last in Car Quality Survey

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By Douglas A. McIntyre Published
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Fiat, the Italian brand of the new Fiat Chrysler Automobiles, placed dead last in the new J.D. Power 2014 U.S. Initial Quality Study. The news all but ruins the chances for the brand, which has already struggled with little success in the American market, to make even modest headway.

The study examines how many problems new owners experience per hundred vehicles in the first 90 days of ownership. The lower the score the better. Top finisher Porsche had a score of 74. Fiat’s score was 206, well behind the other most poorly rated brands: Jeep (146), Mitsubishi (145), Scion (140) and Mazda (139).

Fiat management hoped that Chrysler‘s relationship with dealers and customers would help it reenter the American market. Fiat offers only one model, the 500, which has several levels of accessories and engines. The price of the base 500 Pop is $16,195. The high-end Abarth Cabrio is $26,195. With options, the price can approach $29,000.

Before the J.D. Power rating was posted, Fiat sales were already a disappointment, and just a small part of Fiat Chrysler Automobiles sales in the United States. The company’s total sales in May were 194,421. Fiat’s portion was only 4,771. Fiat is unlikely to sell a total of 50,000 cars in America this year.

ALSO READ: Ten Cars Americans Don’t Want to Buy

To make matters more difficult for Fiat, the 500 competes in a crowded portion of the American market, one dominated by many of the world’s brands. Toyota Motor Corp.’s (NYSE: TM) Yaris has a base price of $14,430. The Honda Motor Co. Ltd. (NYSE: HMC) Fit has a base price of $15,525. General Motors Co.’s (NYSE: GM) Chevy sells its Sonic for a base price of $14,770. Each of these companies has massive dealer networks, brand recognition and nearly unlimited marketing budgets.

Fiat’s efforts to enter the American market with any success have gone from improbable to impossible. Its small presence and lack of a well-known brand have been compounded by its new reputation as the most poorly built car sold in the United States.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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