Two versions of the new Fiat 500L, the Lounge and the Trekking. The maker is now looking at future products.

With the 500L, its second distinct product line, now rolling into U.S. showrooms, Fiat is pondering where to go next.  The maker is hoping to broaden its appeal with an expanding array of microcars – but several senior officials hint that something a bit bigger could be in the cards, as well. The question now being debated internally is just how much bigger the brand can go.

After a painfully slow start, Fiat finally clicked with U.S. consumers in 2012, sales surging to 43,000, in line with earlier forecasts.  The maker is hoping that the new 500L could bump that volume up substantially, the little people-mover potentially generating as much as half of the brand’s U.S. sales, according to Jason Stoicevich, who recently took over as North American brand boss.

He is quick to stress that doesn’t mean sales will double, as some potential Fiat buyers might switch from the little 500 coupe to the 500L – which is a full 27 inches longer and offers interior space nearly as big as the full-size Chrysler 300 sedan.

“We’re not going to set (unhealthy) numbers we have to chase,” Stoicevich told TheDetroitBureau.com during an interview in Baltimore where Fiat gave automotive journalists the first chance to drive the new 500L.  “We want to grow, but we want to be smart about it.”

The Fiat 500X now in Europe could be the maker's next model for the American market.

(Check out TheDetroitBureau.com’s review of the new Fiat 500L. Click Here.)

Since returning to the U.S. market in early 2011, Fiat has used a creative approach to building its brand, rolling out a procession of variants of the 500 microcar, including not only a coupe and convertible but also a Gucci-badged model and the high-performance Abarth edition.  It will launch with four 500L variants that include the Trekking edition created specifically for the States. And while officials say there are no plans “now” for an Abarth 500L, they were cautious not to rule it out entirely.

Indeed, Fiat seems less willing to put itself in a box than just a few months ago when management insisted the brand would “never” expand beyond the physical dimensions of a B-Class vehicle.

“I don’t want us to be pigeonholed,” Stoicevich stressed.

Though he declined to specify where Fiat might go next, the expectation is that it will follow the 500L with an Americanized version of the 500X crossover that recently was introduced in Europe.  Like the 500L Trekking, it would likely undergo some modifications to make it more appealing to American buyers and all-wheel-drive could become a key feature – one that would enhance the vehicle’s appeal in Snowbelt states.

This is “a certain possibility,” hinted Stoicevich.

(Fiat loosens ties to Italy. Will it move its headquarters to Detroit? Click Herefor more.)

While the pint-sized Fiat 500 line might continue to serve as the brand’s halo car in the U.S., there’s no question that the Italian maker can’t limit itself to microcars. The 500 coupe and convertible combined appeal to only about 1% of the American new vehicle market, according to Fiat data, even though the maker has taken trade-ins from owners of much larger vehicles.  By adding the 500L, Fiat now estimates it is on the radar for 4% of American motorists.

“It helps us drive traffic and awareness,” explained Stoicevich.

So, should it go even larger? Several senior sources said that is a question now being actively debated.  Even with the added 27 inches, the 500L is still comfortably positioned in the middle of the B-, or minicar, segment. But Fiat just might find it advantageous to push up into the more mainstream C- segment, one of the fastest growing niches in the American auto industry.

“At this time, we haven’t shifted” away from the B-segment strategy, the new Fiat chief said, cautioning it will “take time” to decide whether to shift the walls on product development.

What’s critical, he added, is that “Our strategy is to provide a full showroom in spaces that makes sense for us. We’re absolutely going to grow” the line-up, Stoicevich added. “We want to go where the growth is (and) there’s space for more.”

One of the big surprises for Fiat has been the strong demand for its new 500e battery car, noted the Chrysler veteran, who most recently has overseen the maker’s California region. Sales have already outstripped the supply for the rest of 2013 and, according to Stoicevich, some California dealers have as many as 100 customers waiting for one of the electric vehicles.

The maker is now trying to ramp up sales, he said, quickly cautioning that the limited supply of key components will likely limit production to somewhere “between 2,000 and 3,000 this year.

“I’d be shocked if we could catch up” with consumer demand, Stoicevich said, acknowledging “We’re a little surprised by how strong demand is.”

For now, Fiat will stick to its plans to limit the 500e to the California market, though “It doesn’t mean we couldn’t take a look at the plan in year three (and) if we saw the opportunity to sell we could rethink that.”

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