I see Matthew Wiesner has popped up again

[K1W1]

He is now heading up the Fiat/Chrysler operation in Australia.
He is quoted in this mornings SMH / Age Drive section regarding the $10k price cuts on Fiat 500 models.
Shame he didn't apply his new found fervor for competitive pricing to the Yeti and Fabia when they are introduced.

[BluChris]

Yep, saw that too. Was talking to my wife about it and we agreed it makes the 500 tempting against the run of the mill small hatches. Hell, I'd probably risk a Fiat for those $ given the character.

Massive shame about Skoda, then again was it him or VW saying 'nein'?

[BottomScratcher]

He is now heading up the Fiat/Chrysler operation in Australia.
He is quoted in this mornings SMH / Age Drive section regarding the $10k price cuts on Fiat 500 models.
Shame he didn't apply his new found fervor for competitive pricing to the Yeti and Fabia when they are introduced.

To be fair to Wiesner, Skoda pricing in Australia is all to do with parent company VAG, rather than who is CEO/Director of Skoda Australia.

And it wasn't Wiesner's idea to pull the prices down on what were ridiculously overpriced Fiats, it was Chrysler's idea. Also this years base model is a different car to last years. There are more variants to chose from, and the base model is more "base".

Considering that the GFC wasn't that remote to Skoda's launch here I think Wiesner did a good job of getting Skoda off the ground in an already tough market. Ask anyone in Geelong about the latter. Perhaps why VAG overruled his idea to bring the Citigo here. Wiesner wanted to put it on the market here for a little over 12K, but VW put the Up out for not a great deal more, so no Citigo for Oz. Again, not Wiesner's fault.

[K1W1]

we agreed it makes the 500 tempting against the run of the mill small hatches.

The mid range Sport (?) is about the same as the mid range Suzuki Swift. I would have been very tempted by one a couple of years ago when I brought a Swift for my daughter. She has a more European outlook on things than a Japanese one.

[K1W1]

And it wasn't Wiesner's idea to pull the prices down on what were ridiculously overpriced Fiats, it was Chrysler's idea.

Other way around I think. AFAIK its Fiat who own Chrysler not Chrysler owning Fiat.
This is what happens when manufacturers retake their distribution from independents. Up until recently Fiat have been distributed by Ateco in Australia.

[BottomScratcher]

Other way around I think. AFAIK its Fiat who own Chrysler not Chrysler owning Fiat.
This is what happens when manufacturers retake their distribution from independents. Up until recently Fiat have been distributed by Ateco in Australia.

"Now that Fiat is under the broader umbrella of the Chrysler Group, the brand is aiming for the diminutive 500 hatchback to compete against three-door rivals such as the Kia Rio, Toyota Yaris and Volkswagen Up." From yesterday's SMH/Age Drive article that you mentioned.

I think I know where you're thinking is coming from, but here's my understanding of the relationship.

Globally, Fiat SpA, a.k.a. Fiat Group is the parent company of Fiat Automobiles, about 60% shareholder in Chrysler, and has partnerships with others. Alfa and Mazda spring to mind.

In Australia, Chrysler Australia now has distribution responsibilities for Chrysler, Fiat, Alfa Romeo, and Fiat commercial vehicles.

So, for now at least, I'll stand by my comment about Chrysler dropping the Fiat price in Australia, not Fiat, though it makes sense that Fiat Auto, and perhaps even someone in Fiat Group, would've had to give the nod to it.

[BluChris]

Either either. Just imagine if the Octavia had been $19,990 drive away and the Fabia $14,990 with aggressive marketing and capped price servicing. It could have been a very different picture by now.

As I understand it, when Skoda took off again in the UK it was this kind of relative value that did it. De-specced cars maybe (no alloys etc) but they were very good value against the competition. Not capped price servicing either but by all accounts cheap servicing.

[BottomScratcher]

Either either. Just imagine if the Octavia had been $19,990 drive away and the Fabia $14,990 with aggressive marketing and capped price servicing. It could have been a very different picture by now.

As I understand it, when Skoda took off again in the UK it was this kind of relative value that did it. De-specced cars maybe (no alloys etc) but they were very good value against the competition. Not capped price servicing either but by all accounts cheap servicing.

It might also have been a very different picture if at the time of the Skoda launch here in late 2007 BNP Parabas hadn't gone toes up triggering events leading to Lehman Brothers collapsing less than 12 months later. Here in Oz we've insulated ourselves from the bigger picture of what Australians alone call the Global Financial Crisis. To the rest of the world it's known as The Great Recession. It's the sort of difference between getting shot at, and getting shot.

Under Wiesner the Yeti was released. The base model was discounted by about $2500 just before it's release to make it lower than it's nearest competition (Captive, CR-V, etc). Yeti is now Skoda's top selling model in Oz. I don't think that's coincidence, or good luck. The strategy worked.

The elephant in the room is always going to be VAG. They want Skoda to be profitable, but just how much do they want to see Skoda succeed here in direct competition against their own badged models?