Former Fiat marketing chief Laura Soave with the 500C during its New York Auto Show launch in April.

Automotive veteran Laura Soave has been forced out of her post as head of Fiat in the U.S. as the Chrysler Group LLC shook up the marketing effort behind the tiny Fiat 500 which has been suffering from sluggish sales since its public launch late last year.

Timothy Kuniskis, a veteran Chrysler Group marketing executive, was named to head of the Fiat Brand for North America, replacing Soave, who led the return of the Fiat brand for nearly two years. Soave, a veteran of top marketing jobs at both Volkswagen and GM “left the company to pursue other interests,” Chrysler said in a statement.

In his new role, Kuniskis, will serve as Director for both the Chrysler Brand and Fiat Brand Product Marketing. That includes managing Fiat Brand sales, marketing, dealer network and service.

“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 LLC, who personally made the announcement of the change in management.

Chrysler vet Tim Kuniskis will assume Fiat management duties.

“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,” Marchionne said.

The Italian executive said Kuniskis will continue with the reintroduction of the iconic brand including its newest vehicle the 2012 Fiat 500 Abarth – which was introduced last week during the L.A. Auto Show’s media preview.

Chrysler Group had originally hoped to sell as many as 50,000 of the Mexican-made Fiat 500s in North America annually. So far the sales have barely topped 16,000 and were less than 2,000 in October.

“Fiat brand is entering a new chapter and it has been deemed appropriate to entrust Tim with the responsibility for the marque in North America,” said Gualberto Ranieri, Head of Communications and Chrysler Group LLC, noting the dealer network had taken longer to develop than planned.

Fiat now has its full complement of dealers, 130, while the awareness of the Fiat brand also has been growing, he said.

The maker had initially tried to downplay the shortfall in Fiat 500 sales, insisting it was largely the result of not having enough dealers in place.

Kuniskis joined Chrysler in 1992 and since then has held a series of increasingly high-level positions in the company’s business center operations and marketing organization.

Industry analysts have been questioning the viability of Fiat’s return to the U.S.  The maker has required dealers to set up standalone showrooms for the brand, rather than sharing their facilities with other Chrysler marque.  That might have been more viable had Fiat also moved ahead with plans to re-launch the Alfa Romeo brand in the U.S., but that has been pushed back several years by Marchionne due to his concerns about having the right products in place for the American market.

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