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Chrysler Group yesterday
hosted around four hundred of its dealers to outline the
requirements that are being laid down to become a Fiat
dealer in the United States. The dealers met with the
Chrysler Group team responsible for establishing a Fiat
retail network by the end of this year. The company
wants to establish Fiat dealerships in about 165
locations, in metropolitan areas chosen for their high
concentration of small-car registrations. With a
reported target of 50,000 units next year that would see
dealers selling an average of around 300 cars each.
Dealers left yesterday’s meeting armed with the
information needed to submit a competitive proposal for
a Fiat franchise. Dealers have been asked to submit
their proposals by September 22. Chrysler Group expects
to name its Fiat dealers in the fourth quarter. There
has been a mixed reaction from prospective dealers so
far, most notably to the demand that they create
standalone showrooms for the 500 which could cost up to
$1 million apiece depending on land prices. The plethora
of brands that Chrysler Group currently holds is another
issue. While GM and Ford have hacked down the number of
brands in their portfolios over the last year, Chrysler
Group has gone the other way: one of its first acts
after exiting the bankruptcy process last year was to
separate Dodge's truck division into a standalone Ram
brand. Adding the Fiat brand to the roster will bring
the tally up to five (Chrysler, Dodge, Ram, Jeep and
Fiat) while if Alfa Romeo also heads stateside, as is
currently proposed for 2012, that would bring the total
to six with overlap creeping in. There is also the
question of continuing consumer interest in subcompact
cars in the U.S., long term fuel price direction and the
fact that BMW's MINI and Mercedes-Benz' Smart brands
have not been a great success story so far. However it
is believed that Chrysler will price the 500
competitively when it goes on sale at the end of the
year.
“The Fiat brand offers our dealers the opportunity to be
part of a unique experience,” said Laura Soave, Head of
Fiat Brand North America. “Our dealers will be able to
interact with a group of individuals that are not part
of their current customer base. These are individuals
interested in Italian automotive design coupled with
fuel efficient technology. Our dealers will be the key
point of contact with our customers, and thereby, a
crucial part of the success of the Fiat brand.”
Chrysler Group dealers located in the targeted markets
were invited to attend yesterday’s meeting where they
learned about the history of the Fiat brand, the U.S.
product plans, volume expectations, competitors, and
dealership facility and training requirements. “We have
determined the areas of the country where they can
succeed and grow,” said Peter Grady, Chrysler Group’s
Vice President of Network Development and Fleet. “Now
they must submit proposals detailing their plan for
representing Fiat, from the showroom to sales, marketing
and after sales.”
The new Fiat retail network will begin selling the U.S.
version of the Fiat 500 late this year, and the Fiat 500
Cabrio model in 2011. The Fiat 500 will be built in
Toluca, Mexico. The North American version of the Fiat
500 will be equipped with Fiat’s 1.4-litre, in-line
four-cylinder Fully Integrated Robotized Engine (FIRE)
featuring the MultiAir system. The engine is to be
manufactured in the United States. MultiAir is a
sophisticated technology that delivers an increase in
power up to 10 percent and a reduction in fuel
consumption and emissions up to 10 percent when compared
to similar engines.
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