Fiat Franchise

[SDCJ]

Has anyone had any official contact from any of your dealer placement managers concerning adding the Fiat to your stores? I am very curious about this because they plan to launch the 500 end of year so they need to start to get dealers in place.

[Ralph]

That's a 13 billion dollar question my friend. The 500 will be on dealers lots by December, in separate facilities and/ or sections of the showrooms. There will be only certain dealers in metro markets retailing these puppies. Of course, all this has to be done in the next seven months.

I think this 500 fiasco will shed a lot of light on the true nature of this " merger of equals". The beginning of the Fiatization of Chrysler. The plan. The future. Ugh, I have to say I'm watching this now from the outside, and it's no prettier foam here than from the inside. As other companies retailing vehicles in the united states grow in market share, sales rates and profitability, all the while shrinking their stable of products...fiat/Chrysler looses market share, the sale rate is still slipping away and the famed and touted profitability seems to be a pipe dream. Oh I almost forgot, they've added another brand, are planning more models for their stable and seem to truly be fading from any semblance Of importance in the market place or public eye.

I nipped the rant in the bud...whew! I hope everyone is well, have a great weekend, and keep the faith for the big guy struggling in the hospital!!!

[XDCX]

Originally Posted by SDCJ

Has anyone had any official contact from any of your dealer placement managers concerning adding the Fiat to your stores? I am very curious about this because they plan to launch the 500 end of year so they need to start to get dealers in place.

It's been really quiet - I haven't heard or read anything suggesting that Chrysler's started to contact dealers about adding the Fiat 500 franchise.

Here's a link to a thread where we recently discussed this topic - click here

If Chrysler's going to follow the MINI distribution plan that means they only need to add less than 100 dealers.

[XDCX]

I noticed in the story Automotive News released concerning Fiat's plans to bring a four door version of the 500 to the U.S. the reporter indicated that Chrysler has not decided how many dealers to appoint.

For Chrysler's sake, I hope they've already decided how many dealers will be appointed to sell Fiats but just haven't announced their plans. It would be hard to imagine their plans are that fluid this late in the game.

[ssdd]

Originally Posted by XDCX

I noticed in the story Automotive News released concerning Fiat's plans to bring a four door version of the 500 to the U.S. the reporter indicated that Chrysler has not decided how many dealers to appoint.

For Chrysler's sake, I hope they've already decided how many dealers will be appointed to sell Fiats but just haven't announced their plans. It would be hard to imagine their plans are that fluid this late in the game.

it will be the same favored sons that got a Grand Cherokee drive away event...

[XDCX]

Originally Posted by ssdd

it will be the same favored sons that got a Grand Cherokee drive away event...

I'd be inclined to agree.

In my opinion the only "wildcard" will be the level of involvement exercised by the recently appointed Fiat Brand CEO, Laura Soave. To the extent she's one of Marchionne's 78 direct reports, she may have enough horsepower to circumvent Diaz and the Business Centers.

[ssdd]

my dm said there is going to be such a high buy in, such as fiat having its on showroom, it will make the fiat 500 cost prohibitive for most dealers...

[Ralph]

Well that figures....it'd make an unaffordable investment...shaky dealer group trying to hustle the changes required for a new line like the 500,...and a disastrous launch. I was just looking in my crystal ball...and saw that exact trajectory. LOL

[SDCJ]

Originally Posted by ssdd

my dm said there is going to be such a high buy in, such as fiat having its on showroom, it will make the fiat 500 cost prohibitive for most dealers...

I'm sure DM's are only guessing at this point...same as the rest of us. After some additional discussions I would bet that the BC dealer placement mgrs are not even sure what is going on.

[The StraightShooter]

Open a McDonalds at least the customers never say no and routinely bump themselves.

[XDCX]

Originally Posted by ssdd

my dm said there is going to be such a high buy in, such as fiat having its on showroom, it will make the fiat 500 cost prohibitive for most dealers...

Marchionne commented he intends to bring the Alfa Romeo brand back to the U.S. and the vehicles will be sold by Chrysler dealers.

Who wants to bet the Alfa Romeos will be sold by the Fiat 500 dealers only? That would be a handy way for Chrysler to overcome the objection that the facility changes are too expensive.

As a side note, who remembers Marchionne's statement back in November that he wouldn't bring Alfa Romeo to the U.S. if he thought it would impact sales of Chrysler and Dodge vehicles?

[SDCJ]

Originally Posted by ssdd

my dm said there is going to be such a high buy in, such as fiat having its on showroom, it will make the fiat 500 cost prohibitive for most dealers...

The thing is, Chrysler has never before really enforced the improvements that dealers agreed to. There are two instances in my market area that dealers did not complete the "required" improvements. One dealer (who survived the cuts lasts year) has had his 3 Chrysler franchises in his Ford Store for 5+ years after signing an agreement to establish seperate operations.

Are they going to treat this situation with Fiat and Alfa different?

[Ralph]

Probably not...depends on who it is. They claim that they're holding everyone's feet to the same fire, but I think we all know that isn't true. There's always been some magic word that gets you in good favor with Chrysler ...just I never knew what it was.

Can you imagine anyone in this climate working with lenders or their own wallets, to spend a million or two for a new facility to sell...Chrysler dodge...fiat...alpha??? If you build it...who will come?

[XDCX]

Originally Posted by SDCJ

The thing is, Chrysler has never before really enforced the improvements that dealers agreed to. There are two instances in my market area that dealers did not complete the "required" improvements. One dealer (who survived the cuts lasts year) has had his 3 Chrysler franchises in his Ford Store for 5+ years after signing an agreement to establish seperate operations.

Are they going to treat this situation with Fiat and Alfa different?

I can think of a similar situation in Northern California where a large Ford dealer bought out a CJD dealer in a neighboring community and then consolidated the dealership with his Ford store. The media reported the dealer had two years to build a new facility for Chrysler - it's been a year and an half and nothing's happened yet. The dealer's only selling about 10 new CJD vehicles per month - who would want to build a new facility for that volume?

Concerning the Fiat deal, I guess Chrysler's ability to enforce facility requirements will depend on how much demand there is among Chrysler dealers to add the franchise.

[SDCJ]

Originally Posted by XDCX

Concerning the Fiat deal, I guess Chrysler's ability to enforce facility requirements will depend on how much demand there is among Chrysler dealers to add the franchise.

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?