Sidelined since mid-September, Fiat North America’s
embattled CEO Laura Soave has finally been replaced with
Chrysler veteran Tim Kuniskis, who is tasked with
getting the Fiat relaunch back on track.
In a statement yesterday,
Chrysler Group said that it had named Timothy Kuniskis
Head of the Fiat Brand for North America. Kuniskis, who
joined Chrysler in 1992, most recently served as
Director for both the Chrysler Brand and Fiat Brand
Product Marketing. The move is effective immediately. In
his new role, Kuniskis is responsible for the Fiat Brand
in North America which includes leadership for Fiat
Brand sales, marketing, dealer network and service.
Always perceived as
out of her depth, Soave bites the bullet after a
disastrous relaunch for the Fiat brand in the United
States and Canada, which has seen sales barely reach
half Fiat’s targets before they started a sharp retreat.
After peaking at just over three thousand units in July
(3,038) and August (3,106), sales slipped down to 2,733
in September. However, even that wasn’t the end of the
bad news, as they slumped to just 1,965 units last
month. That leaves the 500 on 15,826 sales so far, and a
long way short of the target of 50,000 units a year.
The Fiat relaunch
Stateside has been enacted on an insufficient budget,
and the marketing, such as it is, has been disjointed
and incoherent. To compensate for the budgetary
limitations, Fiat has tried to use guerrilla marketing
techniques, but without an underlying understanding of
the principles involved.
The relaunch has
culminated in the ridiculed choice of actress and singer
Jennifer Lopez as the face of the Fiat 500, although
this cannot be wholly blamed on Soave – perpetually
star-gazing marketing chief Olivier François was, at
least initially, very quick to take credit for her
employment. That led to an initial – widely-panned –
advert, itself followed by several more that focus on
Lopez rather than the 500. The focus on a celebrity to
speak for the car has itself been a poor strategy – it
has drawn attention away from the positive attributes of
the 500, while pitching the car entirely to a female
demographic is a risky strategy, especially when the
Abarth version has just arrived.
Veteran Detroit auto
executive Peter De Lorenzo broke the news that Soave had
been sidelined on September 21. He also claimed in his
blog that she was being investigated for “impropriety”
in her relationship with Impatto, the Detroit-based
advertising agency that had managed the 500’s Stateside
relaunch but was hastily dropped at the same time. In a
statement yesterday, Chrysler Group simply said that:
“Laura Soave has left the Company and will pursue other
interests.”
“Tim brings broad expertise and leadership in dealer
operations and marketing where he has been already
working with the team to shape the direction of the Fiat
Brand,” said Sergio Marchionne, Chairman and CEO,
Chrysler Group, who hired Soave apparently on the
strength of an semi-impromptu interview although she was
severely underqualified for the position. “As North
American Head of Fiat, much of his immediate focus will
be working with the dealer body where his fresh
perspective from the operational side, as well as that
on the commercial side, will begin the Fiat Brand’s next
chapter.”