Chrysler Naming U.S. Fiat Dealers

AUBURN HILLS, Mich. — Chrysler Group LLC is notifying dealers that have been chosen to sell the Fiat brand in the United States, including three from Metro Detroit, reported The Detroit News.

Golling Chrysler Jeep Dodge Ram in Bloomfield Hills; Carl Galeana's Van Dyke Dodge in Warren and his dealership in Fort Myers, Florida; and David Fischer's Novi location of the Suburban Collection initially will be the only ones authorized to sell the Italian brand in Michigan.

Chrysler, which partnered with Fiat SpA when it emerged from bankruptcy in 2009, first wants about 165 locations in 119 metro markets as the only product they will have to sell is the tiny Fiat 500 hatchback. The car will be unveiled to the public in November at the L.A. auto show.

But, by the end of 2012, when there are more versions of the 500 as well as additional and larger Fiat models, the plan is to increase the number of dealerships to 200 locations, which could include another Michigan franchise.

Those dealers would also be in line to add the Alfa Romeo brand when it returns to the U.S. market in 2012.

The three Detroit-area dealers have been notified they are part of the original rollout and will prepare their facilities and get ready to take orders for the tiny car that goes on sale in December. A marketing launch is planned for March when production and volumes will have ramped up. So far, Chrysler is still producing pilot versions of the car at its Toluca, Mexico plant, which will soon be followed by models authorized for sale.

The majority of dealers are being notified today. The rest, many of whom had incomplete proposals, will be named by year's end.

"We have carefully considered each of these dealer proposals looking for the best locations and the most creative plans," said Peter Grady, Chrysler vice president of network development and fleet operations.

"We are thrilled with their level of interest in securing the Fiat franchise and in the innovative proposals they have submitted. We're excited to be at the point where we now can start appointing our Fiat dealer network," Grady said.

About 400 dealers gathered in Detroit on Aug. 30 to learn more about the plans for the Fiat brand and what the automaker requires from its franchises in terms of facilities, staff, training, marketing, inventory and parts. Interested dealers had until Sept. 22 to submit a proposal.

Chrysler says it also will look at proposals from dealers outside the Chrysler network who have expressed interest in a Fiat dealership. They are unsolicited proposals that are being considered, said spokesman Ralph Kisiel. The automaker is not seeking additional proposals.

"We are looking for a customer experience that is as unique and personalized as the Fiat 500 itself," said Laura Soave, head of Fiat Brand North America. "Some of the proposals are extremely creative, and in many cases, not only met but exceeded our expectation."

Dealers must have a separate sales area to sell the Fiat 500 but can initially use Chrysler service bays.

The franchises are located in cities with strong, small-car registrations and potential small-car sales growth over the next five years. They represent 37 states and Puerto Rico.

Detroit is the only city in Michigan. Florida, New York and California have the most cities slated to get Fiat dealers.

Projected Fiat volumes are small. Chrysler will build about 120,000 500s annually, and half that for South America. The 500 will be followed by a 500 convertible next year, and electric and performance Abarth versions in 2012.

The Italian automaker stopped selling Fiats here in 1983 and ceased mainstream Alfa Romeo sales in 1995. Sales continue of the more exotic Ferrari and Maserati brands and the low-volume Alfa Romeo 8C sports car.