Fiat Franchise

[jayhawk]

no strings, sure. further investment,, no way!!!

[Ralph]

Seems I remember in the big press conference in november, (where they cancelled the Q&A at the last second) that by 2013 most everything would be replaced by Fiat products. Combine that with the rumored 500 at select dealers...rumored Alpha products being retailed in the US and I smell a continued "have and have not" dealer policy in Turin. (remember Turin has free rein to run Chrysler and/or what's left of it as they see fit) the first wave of changes is the gifting of franchises to their chosen few. The next wave will be the awarding of the 500 franchises. All the while the continuation of the freezing out of the "little guys" and those who just don't play ball...using dealer standards evaluations. The third wave will be the gradual replacement of current products with Alpha and fiat products...through the favored few.

In the end you'll have select dealers in metro markets retailing the full stable of new alpha and fiat products...plus ram and jeep, and the remaining few others who have somehow survived the next few years who are still retailing the remaining ram and jeep products. If you can't terminate them...bully them...replace them...then simply starve them of product. They said they were replacing the product line with their own products, they said they'd award select dealers with the new franchises...they have already told us of the future.

But then again, that wouldn't be fair...so they'd never do it. No way.

[XDCX]

Originally Posted by SDCJ

What is the demand from CJDR Dealers? Assuming the requirement turn out to be reasonable (a big assumption, I know). How many of you are interested in selling Fiats or Alfas? Can you sell 1-10 Fiats per month? Would you invest anything?

My bet is the vast majority of Chrysler dealers won't even get a chance to do a cost/benefit analysis. I think Auburn Hills and the BCs will hand select 80 - 100 dealers across the country and the rest of the dealers won't even know what the franchise requirements were.

It was mentioned in another thread that the NEWCO version of Chrysler seems to have a bias toward mega-dealers and those who have Dealer Council connections. My bet is that pattern is repeated with the selection of the Fiat dealers.

[XDCX]

I noticed this thread is over a month old and I still haven't heard anything about Chrysler's selection process for determining which dealers will sell the Fiat 500.

Has anyone heard anything?

Given the limited amount of time Chrysler has until the Fiat 500 is supposed to be launched, my bet is they've selected their dealers and sworn them to secrecy. It's hard to believe they would approach a dealer at this point and expect him to be ready to sell vehicles by the end of the year.

[Noah]

This is the first update I've seen on this topic in a LONG time. My immediate thought was, if they want separate facilities for Fiat franchise, 3mos isn't much time to give...

http://www.detnews.com/article/20100...dealer-network

[Ralph]

Well I'll be...US government gives a US company to an Italian company, because they have the best small car knowledge and technology around...and that's what Chrysler needs to succeed.Then with OUR 15 billions buckaroos, they go and set up their own Fiat dealer network.

Maybe I missed something...how does this help Chrysler dealers when they drop a new competing Franchise in the market? Oh yeah...that's right...a few mega dealers who can spring for that kind of investment, (maybe or maybe not Chrysler dealers), get awarded the vehicles...and the other 2400+ Chrysler franchises in the country get nothing from this whole scheme.

That wasn't the smoke and mirror deal we were sold a year ago now was it? Oh boy...LOL...glad I didn't hold out for the new vehicles in my showroom...and in Chrysler's vehicle portfolio. They're never going to be in Chrysler showrooms at all!

[XDCX]

Originally Posted by Noah

This is the first update I've seen on this topic in a LONG time. My immediate thought was, if they want separate facilities for Fiat franchise, 3mos isn't much time to give...

http://www.detnews.com/article/20100...dealer-network

Thanks for the link - I just had a chance to read the story.

I agree that three months to set up a dealer network sounds insane. Frankly, I don't think any part of this story can be accepted on its face value.

At the risk of sounding conspiratorial, my bet is Marchionne already knows EXACTLY who the new Fiat dealers will be and sending letters to the 2,300 current Chrysler dealers is just a stunt to make it appear the process was fair.

As I've stated before, it never made sense to me that Chrysler didn't use their bankruptcy power to force a new dealer agreement on the NEWCO dealers. In my opinion, this helps explain the reason why - Marchionne knew he wouldn't be bound by the OLDCO dealer agreement because he was going to set up his own distribution network.

It will be interesting to see what role the Business Centers play in the Fiat dealer selection process. My bet is it will be minimal at best.

[XDCX]

Originally Posted by Ralph

Maybe I missed something...how does this help Chrysler dealers when they drop a new competing Franchise in the market? Oh yeah...that's right...a few mega dealers who can spring for that kind of investment, (maybe or maybe not Chrysler dealers), get awarded the vehicles...and the other 2400+ Chrysler franchises in the country get nothing from this whole scheme.

I couldn't agree more - especially the part that the new Fiat dealers may not even be existing Chrysler dealers.

Additionally, if times get tough which dealer network do you think Marchionne will flood with new product to keep it alive? It always bothered me that Marchionne never wanted to meet the Chrysler dealers - maybe this is the reason why?

[Needhelp]

I'm just wondering, but what would stop Sergio from selling off the Ram and Jeep brands as well as the minivan once his dealer network is established? He already received 20% of Chrysler for free and stands to received an addition % after he hangs in long enough.

Why does he want seperate facilities and seperate sales and service agreements? What can he possibly have up his sleeve?

Just imagine one of the terminated dealers with a Fiat franchise as apparently you don't need a Chrysler dealership to get Fiat.

[SDCJ]

Check your dmail box. There is a letter from Peter Grady about this.

[jdemonto]

Not sure if this is different than already posted

http://www.allpar.com/news/index.php...g-fiat-dealers

Chrysler has begun to select dealers for the launch of the Fiat 500, which, according to some reports, will be the only car sold under the Fiat brand for some time. The new version will hit American shores late in 2010, with the Cabrio version arriving in 2011. While the first batch of cars will be made in Italy, production for the Americas is to be moved to Mexico.

Dealers will be in around 41 states, covering 125 markets where small cars are viable for sales. The goal is, according to Chrysler’s dealer network leader, Peter Grady, to “establish a dealer network that will reflect and enhance the brand’s reputation for innovation and fun, and will offer a unique, personalized customer experience.”

Application guides will be sent to dealers in appropriate markets, with requirements and instructions. The guide includes details on facility, sales strategy, accessory sales, service and parts departments, training, and financial requirements.

Higher-performing dealers will be given preference; dealers are to be evaluated on “volume performance … capitalization and overall Dealer Standards score. … the proposed facility and customer handling metrics.” The final choices will be announced in September.

Fiat cars must be sold in a completely separate facility with a separate sales and service team; the standards are different from existing Chrysler Group dealer standards. This appears to be a similar approach to Scion and Mini.

[possum]

All of this long awaited, anticipation for our savior "Fiat".
Now, this is the deal.......Newco should have seen the writing on the wall.

[steve_biegler]

Check your chrysler e-mail everybody........Open your wallet......Bend over!!!!!

[The StraightShooter]

From my vantage point across the River Styx and Imho, you'd be better served adjoining a Starbucks in terms of r.o.i. I don't see these meatballs remaking FIAT into the next MINI Cooper or Scion...just saying

[possum]

Mini Cooper with BMW behind it, and Scion with Toyota behind it, look to be slowing down. Whats behind Fiat?