Chrysler Invites 600 Dealers to Apply for Fiat Franchises, Attend Aug. 30 Meeting
DETROIT - Chrysler Group has invited roughly 600 dealers in 119 U.S. markets to apply for franchises to sell Fiat cars, Automotive News reported.
The invitation was sent to the dealers by Laura Soave, head of Fiat North America, and Peter Grady, Chrysler's vice president of network development and fleet. Dealers who accept the invitation will attend a program called the Fiat Experience on Aug. 30 in Detroit.
Chrysler will use the event to present details of its plans for the Fiat network. The company will ask interested dealers to present proposals by Sept. 22. The automaker will choose the Fiat franchisees in early October.
The first Fiat to go on sale will be the Fiat 500 minicar, scheduled to start production in Toluca, Mexico, in the fourth quarter. Three other 500-based models are scheduled to go on sale by 2013, including a convertible, a sporty Abarth and a four-door hatchback with a raised roof.
“The requirements for Fiat are straightforward: separate sales and display at launch, transitioning to a full dealership facility as the volume grows,” Grady said in a statement.
Dealers may also get the chance to sell Alfa Romeos; the brand is expected to return to the U.S. market in 2012. Chrysler spokesman Ralph Kisiel declined to discuss future Alfa Romeo products or any Alfa Romeo network, but said the Fiat network “might be expanded as more new products are added to the lineup.”
Chrysler extended the invitations to dealers in 36 states and Puerto Rico. The company said the 119 markets have “strong small-car registrations and growth potential in the small-car segment over the next five years.”
Chrysler plans to grant about 200 Fiat franchises across those markets.
Kisiel said some non-Chrysler dealers might get an opportunity for Fiat franchises if no Chrysler dealers come up with satisfactory proposals in a given market.
“In that kind of circumstances we might consider a non-Chrysler dealer,” Kisiel said. “We won't know that until these dealers come to the meeting and learn what they need to know and submit their proposals.”
Chrysler said it will evaluate dealers on a number of criteria, including:
Sales performance
Plans for a separate Fiat facility
Comprehensive marketing plans
Compliance with dealer standards
Proper capitalization
Fiat acquired management control of Chrysler last year as part of the U.S. government's rescue of the automaker. Under the alliance, Fiat is using Chrysler's sales network to reintroduce the Fiat brand in America. Fiat withdrew from the U.S. market in 1984 and Alfa Romeo left in 1995.
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