The Fiat brand of Fiat Chrysler Automobiles N.V. (NYSE: FCAU) is so routinely panned for its product quality that it’s a wonder the cars are still for sale in America. Most recently, Fiat finished second to last in the widely regarded J.D. Power 2016 U.S. Initial Quality Study. The only solace Fiat Chrysler can take is that the tiny smart car brand of Daimler finished last. Daimler also owns Mercedes.
Most Chrysler brands have finished low on this and other surveys. Not so with the new J.D. Power one. Although rated slightly below average, Jeep, Ram, Dodge and Chrysler found themselves above perennial Japanese high-quality brands Subaru and Honda Motor Co. Ltd. (NYSE: HMC).
The brands are measured by how many problems each have per 100 vehicles, based on a data from 80,000 buyers and lessees of 2016 models over the first 90 days of ownership. The average across all brands was 105. Fiat’s score was 174.
At the top of the list, Korean budget brand Kia surprised the industry with a first place finish with a score of 83. Ultra-luxury Porsche was second with a score of 84. Third was Kia stablemate Hyundai with a score of 92. Following these, Toyota Motor Corp. (NYSE: TM) scored 93 and BMW scored 94. General Motors Co.’s (NYSE: GM) Chevrolet was the highest rated U.S. brand with a score of 95.
It is peculiar that Fiat Chrysler would stay with a loser for so long, particularly when Fiat’s sales are a rounding error. The parent company sold 204,452 cars and light trucks in the United States in May, up 15 from May a year ago. Fiat sales were 3,137 down 19%. It must be hard to convince dealers that it is worth marketing and stocking the cars at all.
There is no single sign that Fiat Chrysler can save the Fiat brand in America. The company should quit while it is behind.
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