The problems of the relaunch, although foreseen by many before even the first of the ‘studio’ showrooms opened their doors, are made apparent by recent sales data. After peaking at just over 3,000 units in July (3,038) and August (3,106), the 500’s sales slipped down to 2,733 in September. Things got even worse last month, however, when nationwide sales slumped to just 1,965 units – against Fiat’s target of over 6,000 units a month.

That leaves the 500 on 15,826 sales for the year-to-date, and far away from achieving Fiat’s target of 50,000 units – although few outside the Italian carmaker’s own walls ever took this target seriously. Anecdotally, this year-to-date figure also includes rising levels of less-profitable fleet sales, although a precise breakdown is not possible as Fiat does not divide its sales into separate fleet/retail figures.

A report in Automotive News, quoting internal Chrysler Group documentation from November 1, noted supply of the 500 and 500C stands at 184 days. With lots brimming full of unsold 500s, the decision has been taken to suspend production of its 1.4 FIRE engine.

AN quoted a UAW union leader at Chrysler’s Global Engine Manufacturing Alliance Plant in Dundee as saying that more than 100 of the 400 hourly paid staff had been laid off since the beginning of November, with no return date yet announced. Chrysler Group spokesperson Jodi Tinson disputed the numbers, telling AN that the plant “is moderating its schedule to adjust for the current bank of engines.” She said that 30 workers had been laid off and 35 redeployed.

Also now more glaringly out of the big picture is Fiat North America’s boss Laura Soave. With no previous role on her CV indicating she held the capacity to oversee a national brand relaunch – her previous role was at Volkswagen of America, where she was General Manager of Experiential Marketing – it comes as no particular surprise she has proved out of her depth. In part, the 500’s disappointing sales figures are due to the slow rollout of the dealer network, as well as ill-advised marketing initiatives which have attracted widespread criticism. As first revealed by blogger Peter De Lorenzo on September 19, Soave was sidelined for the ongoing problems with the relaunch. He also reported the relationship between Soave and the 500’s launch ad agency, Impatto, was being investigated by Chrysler for evidence of impropriety.

At the LA Auto Show this week, it was new Fiat global boss Olivier François who had the job of introducing the Abarth variant of the 500 to the media. During a press conference this week at Chrysler’s Toldedo plant, when asked by reporters if Soave retained her position, Marchionne replied, “For the time being” – effectively a public announcement she is on borrowed time at Fiat. From the very start, eyebrows had been raised when she apparently gained the job off the back of an impromptu interview with Chrysler Group CEO Sergio Marchionne; her appointment ultimately reflects the decision-making processes of those who employed her.