Retro-style car manufacturer Fiat needs to up its game in order to bring back the brand in the market.
Troubled car maker Fiat needs to do something about losing its hold in the market.
Fiat, famous for its retro-themed 500 compact car has been acquired by the U.S. Unit of Chrysler and renamed the joint companies and Fiat Chrysler Automobiles (FCA).
FCA sets out an aggressive development plan to bolster its Alfa Romeo, Maserati and Jeep brands.
Analysts reportedly agree on FCA's move to focus on selling its high-earning upscale cars, however felt like the company is putting the Fiat brand, which also bring huge amount of money, on the side lines.
FCA reportedly sold 1.5 million Fiat units in 2013, 34 percent of the cars sold last year.
Fiat should have made its comeback and boosted sales by launching the mini-SUV 500X in the Paris auto show.
However, the "aging brand" but reportedly fallen short of the company's expectations.
"The 500 is getting older and older, the success of its variants has been limited and they lack a competitive offering at a time when Volkswagen, Peugeot and Renault continue to launch new cars," stated Sascha Gommel, an analyst at Commerzbank.
"Even if the European recovery was gaining momentum, Fiat would definitely lose out,"Gommel added.
The Fiat 500X, which was created to go head-to-head with the BMW Mini, was revived in 2007 and the company was able to sell over a million cars from its relaunch until 2013.
However, the hype of the Fiat 500X died down after its 2009-2009 climax as the economic crisis caused a dramatic six-year collapse which resulted in a decrease in car sales all over Europe.
As of the moment, FCA plans to develop the Fiat brand to enter the mainstream market to boost sales by 60 percent.
