Chrysler Plans More Fiat Dealerships as 500 Misses Sales Goals
Chrysler Group LLC, falling behind its North American sales goals for the Fiat 500, plans to open 20 more U.S. dealerships during 2012’s first quarter to sell the Italian brand.
North American sales of the Fiat 500 this year through October reached 21,380, a rate below Chief Executive Officer Sergio Marchionne’s forecast of 50,000 for 2011. The rollout was hindered by complications in opening new Fiat stores instead of using existing space at Chrysler dealerships, reported Bloomberg.
Olivier Francois, head of the Fiat brand worldwide, started a U.S. marketing campaign featuring singer Jennifer Lopez in September. He is overseeing the introduction of the performance version of the 500, the Abarth, scheduled to reach showrooms early next year.
“The process of launching a new brand with three models, the 500, Cabrio and Abarth, is a process that takes time,” Francois said in an interview in advance of the Los Angeles Auto Show. “We continue to increase our customer awareness.”
Marchionne said today in Toledo, Ohio, that the lack of Fiat outlets has held back sales of the 500.
“We need to continue to work on distribution,” Marchionne told reporters. “We’ve had 50 dealers, 60 dealers trying to sell the car. I think Ferrari has more dealers than that.” The CEO was in Toledo to announce a $1.7 billion investment to update a Jeep sport-utility vehicle.
Chrysler has opened more than 120 U.S. Fiat stores this year, Richard Palmer, chief financial officer, said during Fiat’s third-quarter earnings call with analysts on Oct. 28.
Gualberto Ranieri, a Chrysler spokesman, said 130 U.S. stores should be open by year’s end and Francois said the number will rise to 150 by March 31.
“I think that’s a good level,” Francois said. “What is very important is not the quantity but the quality.”
Chrysler, based in Auburn Hills, Michigan, is majority- owned by Turin, Italy-based Fiat SpA. Marchionne is CEO of both companies.
Fiat is targeting a merger with Chrysler within the next three years. Marchionne said today instability in Italy may affect the decision on where the combined company will be based.
“I would be lying to you if I told you it didn’t,” he said. “That’s not to say that the current situation will force us to move away from Italy. We’re committed to the industrial backbone of the country. The country has to make some tough choices going forward, and it has to make them now.”
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →