Chrysler to set up separate Fiat dealer network
07-06-2010, 08:57 PM
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Chrysler to set up separate Fiat dealer network
Chrysler to set up separate Fiat dealer network
Associated Press
Detroit -- Chrysler Group LLC will set up a separate dealership network to sell cars made by Italy's Fiat Group SpA when they are reintroduced in the U.S. later this year.
The Auburn Hills, Michigan-based automaker said existing Chrysler, Dodge, Jeep and Ram dealers will get a chance to apply to sell the Italian Fiats, but they must be able to operate separate facilities with different sales and service teams in order to win a franchise.
Fiat, which last sold cars in the U.S. in the 1980s, will return to the country in December with the debut of the Fiat 500, a highly efficient, very European-looking small car. Other Fiat models are likely for the U.S., but the company has not made announcements beyond the 500, known in Italy as the Cinquecento.
Fiat was given control of Chrysler by the U.S. government when the automaker emerged from bankruptcy on June 10, 2009. The company would have run out of cash and been sold off in pieces without roughly $15 billion in aid from the U.S. and Canadian governments. While noting that the company still has a long road ahead to recovery, CEO Sergio Marchionne last month touted Chrysler's first-quarter operating profit, two straight months of sales gains and plans for 16 new or updated vehicles by the end of this year.
The Fiat dealerships will be located in roughly 125 U.S. metropolitan areas that Chrysler has found to have high small-car registration and high potential for growth in selling smaller cars, said spokesman Ralph Kisiel. The company expects to have 200 Fiat dealers in 41 states.
Letters will go out Monday to Chrysler Group's roughly 2,300 dealers nationwide giving them general guidelines for applying to become Fiat dealers. More specific requirements will come in application packets for interested dealers.
"Dealers are going to have to demonstrate how they will market, sell and service Fiat vehicles with a new customer service model," Kisiel said.
He would not say if dealers will have to pay to buy a Fiat franchise. Generally, interested dealers must be in the 125 designated markets, meet customer satisfaction and minimum sales requirements, and show that they have the financial resources to support the brand, Chrysler said in a statement.
Dealers outside the 125 identified markets will be considered for Fiat franchises provided they meet all the performance standards and financial requirements, Kisiel said.
Chrysler hopes to announce the dealership network in September, three months before the 500 is to arrive in the U.S. Chrysler also has announced plans for a 500 convertible and an electric version, but no timing has been revealed for those models to go on sale.
Associated Press
Detroit -- Chrysler Group LLC will set up a separate dealership network to sell cars made by Italy's Fiat Group SpA when they are reintroduced in the U.S. later this year.
The Auburn Hills, Michigan-based automaker said existing Chrysler, Dodge, Jeep and Ram dealers will get a chance to apply to sell the Italian Fiats, but they must be able to operate separate facilities with different sales and service teams in order to win a franchise.
Fiat, which last sold cars in the U.S. in the 1980s, will return to the country in December with the debut of the Fiat 500, a highly efficient, very European-looking small car. Other Fiat models are likely for the U.S., but the company has not made announcements beyond the 500, known in Italy as the Cinquecento.
Fiat was given control of Chrysler by the U.S. government when the automaker emerged from bankruptcy on June 10, 2009. The company would have run out of cash and been sold off in pieces without roughly $15 billion in aid from the U.S. and Canadian governments. While noting that the company still has a long road ahead to recovery, CEO Sergio Marchionne last month touted Chrysler's first-quarter operating profit, two straight months of sales gains and plans for 16 new or updated vehicles by the end of this year.
The Fiat dealerships will be located in roughly 125 U.S. metropolitan areas that Chrysler has found to have high small-car registration and high potential for growth in selling smaller cars, said spokesman Ralph Kisiel. The company expects to have 200 Fiat dealers in 41 states.
Letters will go out Monday to Chrysler Group's roughly 2,300 dealers nationwide giving them general guidelines for applying to become Fiat dealers. More specific requirements will come in application packets for interested dealers.
"Dealers are going to have to demonstrate how they will market, sell and service Fiat vehicles with a new customer service model," Kisiel said.
He would not say if dealers will have to pay to buy a Fiat franchise. Generally, interested dealers must be in the 125 designated markets, meet customer satisfaction and minimum sales requirements, and show that they have the financial resources to support the brand, Chrysler said in a statement.
Dealers outside the 125 identified markets will be considered for Fiat franchises provided they meet all the performance standards and financial requirements, Kisiel said.
Chrysler hopes to announce the dealership network in September, three months before the 500 is to arrive in the U.S. Chrysler also has announced plans for a 500 convertible and an electric version, but no timing has been revealed for those models to go on sale.
07-07-2010, 02:16 PM
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Ok, I'll bite.
Does anyone see the wisdom in setting up an entirely new and separate Fiat network? I thought one of the biggest motivations in this deal for Fiat was to utilize the vast Chrysler dealer network to reintroduce their name and their vehicles to the North American market. That's a lot of money to be spending to build new dealer facilities. And if Fiat flops, you've now got a large number of independent dealers that would need to be bought out and closed. Seems risky.
Does anyone see the wisdom in setting up an entirely new and separate Fiat network? I thought one of the biggest motivations in this deal for Fiat was to utilize the vast Chrysler dealer network to reintroduce their name and their vehicles to the North American market. That's a lot of money to be spending to build new dealer facilities. And if Fiat flops, you've now got a large number of independent dealers that would need to be bought out and closed. Seems risky.
07-07-2010, 02:53 PM
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Who knows, BMW has successfully sold MINIs through separate dealerships, but they almost had to in that case - it's tough to sell $20,000 compacts alongside BMWs.
07-07-2010, 07:24 PM
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Ok, I'll bite.
Does anyone see the wisdom in setting up an entirely new and separate Fiat network? I thought one of the biggest motivations in this deal for Fiat was to utilize the vast Chrysler dealer network to reintroduce their name and their vehicles to the North American market. That's a lot of money to be spending to build new dealer facilities. And if Fiat flops, you've now got a large number of independent dealers that would need to be bought out and closed. Seems risky.
Does anyone see the wisdom in setting up an entirely new and separate Fiat network? I thought one of the biggest motivations in this deal for Fiat was to utilize the vast Chrysler dealer network to reintroduce their name and their vehicles to the North American market. That's a lot of money to be spending to build new dealer facilities. And if Fiat flops, you've now got a large number of independent dealers that would need to be bought out and closed. Seems risky.
07-08-2010, 07:47 AM
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Correct - and with those dealers footing the bill, in a still-unstable-and-recovering market, it will be interesting to see just how many Chrysler dealerships will buy in and build. I'm guessing you aren't going to be seeing a large Fiat dealer network anytime soon.
07-08-2010, 10:56 AM
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I think they're going to be following the BMW/Mini model pretty closely here. You don't see Mini dealerships all over the place, and I don't think Fiat epects to have a wide rangingd dealer network. They probably just want key markets covered. Only question is if the market takes to the 500 like they did the Mini. It don't know if they will or not.
07-08-2010, 11:44 AM
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An entire new network to sell just one car which is very small, north of $20k, only comes with a 6-speed manual and as of now no optional automatic. It is also in my opinion a very ugly car. I really can't see this car doing all that well unless gas prices go way up and the add an auto option.
Just put it alongside the rest of the Chryslers to generate some buzz to bring people into the dealerships and maybe each dealer would sell a couple a month.
Just put it alongside the rest of the Chryslers to generate some buzz to bring people into the dealerships and maybe each dealer would sell a couple a month.
07-08-2010, 01:00 PM
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The Mini- BMW model probably works the best. These cars will probably be trendy and bring in a different kind of customer than Chrysler/Dodge has seen before.
07-18-2010, 01:07 PM
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Ok, I'll bite.
Does anyone see the wisdom in setting up an entirely new and separate Fiat network? I thought one of the biggest motivations in this deal for Fiat was to utilize the vast Chrysler dealer network to reintroduce their name and their vehicles to the North American market. That's a lot of money to be spending to build new dealer facilities. And if Fiat flops, you've now got a large number of independent dealers that would need to be bought out and closed. Seems risky.
Does anyone see the wisdom in setting up an entirely new and separate Fiat network? I thought one of the biggest motivations in this deal for Fiat was to utilize the vast Chrysler dealer network to reintroduce their name and their vehicles to the North American market. That's a lot of money to be spending to build new dealer facilities. And if Fiat flops, you've now got a large number of independent dealers that would need to be bought out and closed. Seems risky.
Fiat NEVER had intentions of turning Chrysler into Fiat (one member who should have known better claimed that all Fiat wanted to do was put their name on the Chrysler Building).
Sergio Marchionne had a marathon press conference some months ago which the naysayers completely blew off that actually went into detail as to what Fiat's plans were with Chrysler. Not only in how Chrysler and it's divisions would fit within Fiat's network, but the timeline for each Chrysler model's revisions and updates.
It was also posted here.
It was also hit by the naysayers who were convinced that they were smarter than the press, the UAW, the Feds, and every other biped on earth.
And they were wrong.
The only surprising thing about Fiat setting up a separate network to sell Fiat brand cars is that anyone is surprised.
I'm still waiting for the thread that has the "surprise" that the government didn't turn out running GM and forcing all of us into electric golf carts after all.
