High fuel prices boost Abarth expectations

By Luca Ciferri
BALOCCO, Milan--High fuel prices and the increasing adoption of CO2-based taxes are increasing market potential for sporty minicars such as the new 500 Abarth.
 
Abarth is the sporty sub-brand of Fiat Group Automobiles.
 
"Our plan is to sell 15,000 Abarth models next year, but I think our ecologically correct range could easily find 20,000 clients," Luca De Meo, CEO of Abarth and Alfa Romeo, said.
 
De Meo, who also serves as Fiat Group chief marketing officer, spoke with Automotive News Europe last week.
 
He said Abarth has already raised its 2008 target from 5,000 to between 6,000 and 6,500 sales.
 
The 500 Abarth, which goes on sale in Italy on July 21 for 18,500 euros, has a 205kph top speed. But its average fuel consumption is just 5.4 liters per 100km, emitting 155g/km of CO2.
 
In France, where a CO2 based bonus-malus system was introduced this year, the 500 Abarth fits into the neutral range for vehicles between 130g/km and 160g/km. Cars in this range neither receive a bonus nor pay a malus fine.
 
De Meo expects the 135hp 500 Abarth to cover about half of the brand 2008 sales and 75 percent next year.
 
Abarth's other model, the 155hp Grande Punto, which went on sale in October 2007, accounts for the rest of the brand sales.
 
On the dealer side, Abarth initially planned 100 franchises in western Europe, but it has already signed up 109.
 
The largest dealer corps are in Italy, 50, followed by Germany, 20, UK, 12, France and Switzerland with 7 each.
 
Abarth requires dealers to dedicate at least 200 square meters of showroom space to the brand.
 
Austrian-born engineer Karl Abarth founded Abarth in 1949, four years after he moved to Italy and changed his first name to Carlo. Abarth had worked for Porsche's racing department. Fiat bought the brand in 1971. Abarth's logo is a scorpion because Abarth's birth sign was Scorpio.
 
Abarth was relaunched in March 2007 at the Geneva auto show.
 
Sales outside of Europe will begin next year starting in Japan, where Abarth has many enthusiasts and even a dedicated museum on Mont Fuji.
 
The Abarth variant is part of the 500 range that Fiat is currently considering for a possible introduction in the U.S. around 2010-2011.
From: Automotive News Europe

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