Fiat 500 remake shown off on streets of New York, day after judge approves Chrysler-Fiat deal

Fiat 500 remake shown off on streets of New York

NEW YORK — Italian officials touted the remake of Fiat’s iconic 500 compact as the perfect city car for a new America, a day after a bankruptcy judge gave Chrysler LLC approval to sell most of its assets to the Italian automaker and hours after General Motors entered bankruptcy protection.

As part of the Chrysler deal, Fiat has agreed to share the technology it needs to create the smaller, more fuel-efficient vehicles now craved by U.S. drivers.

Fiat’s “Cinquecento” is emblematic of that. While slightly larger than the original, it has been praised for its low carbon dioxide emissions and won several awards, including Europe’s Car of the Year 2008, and top marks from Euro NCAP, an agency that assesses car safety.

Italy’s Consul General Francesco M. Talo braved traffic and drove the new model of the Italian “Cinquecento” about 6.5 miles (about 10 kilometers) from the consulate on the city’s Upper East Side to Wall Street on Monday. It was a little publicity stunt that had a handful of passers-by stopping and taking pictures of the 3.5-meter-long (11.5-foot-long) car parked in front of the exclusive Cipriani restaurant.

“I guess this could be a good option to save money, save gasoline, save the earth and pollute less,” said Talo, who made the drive in the tiny four-seater with his wife and two of his three children.

His comments came as GM filed for bankruptcy as part of an Obama administration plan to shrink the automaker to a sustainable size. It marked a dramatic downfall for a mighty American automaker.

GM’s filing comes 32 days after a bankruptcy filing by Chrysler, which also has been hobbled by plunging sales of cars and trucks. Chrysler’s plan gives Fiat a 20 percent stake that could ultimately grow to 35 percent. The U.S. and Canadian governments get smaller pieces.

Fiat last did business in North America in 1983, and the brand suffered from its reputation for breakdowns. As the old joke went, Fiat stood for “Fix It Again, Tony.”

But since its launch in 2007, the new 500 has secured Fiat’s turnaround and anchored its new image. With more than 170,000 cars sold last year in Europe — about half in Italy — it has proven its appeal beyond the nostalgia buyers.

The old Cinquecento, released in 1957, was the archetypal cheap car and a symbol of Italy’s postwar economic boom. The tiny rear-engine model with two seats up front and a back bench still holds memories of first cars and first loves for many Italians.

Fiat CEO Sergio Marchionne said last year he would like to launch a full range of 500s in the United States — including a convertible and a larger estate version still in the works. On Saturday, he said he would like to have it on sale in the United States by the end of the first quarter of 2011.

“We have a wonderful example of industrial cooperation between the United States and Italy,” said Talo, pointing to the pearl-white Cinquecento, which was sporting Michigan tags in honor of Detroit-based Chrysler. A drawing of the little car whizzing past the New York City skyline graced its back and side.

Onlookers included lawyer Carter Nichols, 38, who lives in the city’s borough of Brooklyn and said he has been considering buying a smaller car.

“It would be the perfect car to run to the city, take a date out, and go back,” he said.

Talo’s drive was followed by a reception at Cipriani’s in honor of Italy’s June 2 national holiday, where other Italian products — from motorcycles to food and wine — were being showcased. For last year’s festivities, he drove from the consulate on a Vespa.