Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Chrysler to Set Up 200 Fiat Dealerships

July 6, 2010
3 min to read


DETROIT — After a 26-year absence, Fiat dealerships will be returning to the United States — but in a small way, The New York Times reported.


Chrysler said Tuesday that it planned to set up about 200 outlets by the end of the year to sell the Fiat 500, an Italian designed subcompact. The dealerships will be run by existing Chrysler dealers and in many cases located on the same property, but they will have separate showrooms and employees.

Ad Loading...


The strategy runs counter to a general trend of consolidating multiple brands into one showroom. It also requires dealers to commit significant resources to a lineup that initially has a single model. A convertible, the 500 Cabrio, is scheduled to arrive in 2011, followed by a battery-powered 500 in 2012, but Chrysler has not revealed plans to expand Fiat beyond that.


BMW used a similar approach to successfully reintroduce its Mini brand to the United States nearly a decade ago, requiring dealers to build auxiliary showrooms to sell the Mini Cooper. But investing in an expansion for what analysts consider to be a niche model, at a time when auto sales are depressed and many dealers are struggling, is a gamble.


“If I were a dealer, I would be somewhat reluctant to make that investment,” said Erich Merkle, an automotive analyst and president of Autoconomy.com in Grand Rapids, Mich. “You have to go and build a new facility to sell a brand that really is going to take a considerable amount of time to get any kind of volume.”


A Chrysler spokesman, Ralph Kisiel, said the company intended to have Fiat dealerships in 125 markets in about 41 states. He said most would be concentrated in metropolitan areas where small cars were already popular and where demand was expected to increase.


Executives sent letters this week to all 2,320 Chrysler, Dodge, Jeep and Ram dealers inviting them to apply for a Fiat franchise. Fewer than 10 percent will be selected, and the locations will be announced in September, Chrysler said.

Ad Loading...


“We want our best performing dealers to get these franchises,” Kisiel said, adding that Chrysler has focused on “markets that have a high number of small-car registrations.”


The Fiat 500 is a major piece of Chrysler’s efforts to diversify a lineup that has relied heavily on trucks and sport utility vehicles, hurting sales as American consumers began seeking more fuel-efficient alternatives. The company plans to build more than 100,000 of the vehicles a year at a plant in Mexico, sending half to the United States and half to South America.


Access to a dealership network in the United States was a major reason that the Italian carmaker’s chief executive, Sergio Marchionne, pursued a takeover of Chrysler. The 500 fills a hole in Chrysler’s lineup, but also gives Fiat a quick way to re-establish itself in the United States.

More Industry

Showroomby Lauren LawrenceMarch 4, 2026

Used-Vehicle Program Aims to Draw More Buyers

GM says more than 750 dealers across the U.S. are enrolled in CarBravo and that in January CarBravo dealers sold over two times the certified volume of Chevrolet, Buick and GMC dealers using traditional CPO.

Read More →
Industryby Hannah MitchellMarch 3, 2026

Auto Dealers Cautiously Hopeful

Though traffic and profits were down in the first quarter, normally optimistic franchisees and independents saw dim current conditions while holding out visions of healthy spring sales.

Read More →
Industryby StaffMarch 3, 2026

Black Book: Weekly Market Update

Conversions picked up last week at wholesale vehicle auctions, according to the market observer, as the spring shopping season appeared to begin.

Read More →
Ad Loading...
white Audi car in a service bay
Industryby Lauren LawrenceMarch 3, 2026

Recall Service Reaches Milestone

Eight state DMVs participate in the Vehicle Recall Search Service created by Carfax and the Alliance for Automotive Innovation to reduce the number of unaddressed vehicle recall repairs.

Read More →
Industryby Hannah MitchellMarch 2, 2026

Meet the Editor: Hannah Mitchell

A longtime newspaper journalist, Bobit Dealer Group's editor was raised on news back in the South. Now she brings that news-hound ethic to our four auto retail magazines.

Read More →
Summit Updatesby StaffMarch 2, 2026

Enhance Your Dealer's F&I Workflow at Agent Summit

This session is designed to equip general agents with actionable strategies that can help their dealers enhance the efficiency of financial services managers.

Read More →
Ad Loading...
Industryby Hannah MitchellMarch 2, 2026

Auto Brands Hold the Line on Retention

A flat national rate despite inflation and other financial challenges shows industry loyalty stability, annual Reynolds and Reynolds research finds.

Read More →
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Lauren LawrenceFebruary 24, 2026

China Leads Battery Production

Between 2020 and 2025, gigafactory capacity grew six-fold and is set to grow another 118% by 2030, according Benchmark data.

Read More →
Ad Loading...
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →