Jump to content
William Maley

Fiat News: Dealers Are None Too Happy With FCA's Expansion Plans

Recommended Posts

From the 'how does this make sense' file, Fiat Chrysler Automobile is planning to expand its dealer network in the U.S. by adding around 380 new dealers. This news first came to light last week as Automotive News learned from two dealers and a source at FCA about the plans. The goal of this expansion is to try and expand market share. But there are a number of issues. For one, FCA has been seeing its sales and market share drop in the past few months due to a thinner product lineup.

Second, some of the locations that FCA is planning to put new stores are within a few miles of existing stores. For example, two dealers in Louisana have filed protests with Louisiana Motor Vehicle Commission for a proposed dealer in Kenner, LA. One of the dealers notes in their protest that the location is less than five miles from where they are. As they say in their protest, "will either be closer to Bergeron or, worse, must drive by Bergeron, if they are going to do business with the new point." A number of dealers in Texas have also filed complaints on new dealerships in their respective areas.

Finally, an internal FCA source tells Automotive News that the company's dealership location consultant, Urban Science doesn't agree with the expansion plans. The data from the consultant "does not support these additional points."

Fiat Chrysler Automobiles and Urban Sciences were unable to comment.

Source: Automotive News (Subscription Required), 2


View full article

Share this post


Link to post
Share on other sites

More of Sergio Stupidity. This will hurt and just proves Sergio is an idiot as he has not learned from the other auto makers that more dealers is not always good.

Sergio is only looking at how can we move more metal onto other peoples lots to show we are bigger. not about success of the existing company.

I could go down so many ways this is poor business planning and management, but I think most of the intelligent folks here also see this is suicide. 

Share this post


Link to post
Share on other sites

Right now it is not the number of dealers but often the locations. While GM, Ford, Honda and Toyota have spent a lot of time updating dealers and helping many relocate to near interstates many of the Jeep and Chrysler dealers have not updated.

Also they like the other American MFG's  often have too many dealers.

Many dealers are also not happy with the income or the lack of income from Fiat dealers they were encouraged to take in.

Lets see the hands here and how many people are ready to go out and by an Alfa after all the money that was spent last nigh on the Super Bowl.

While I find the new Alfa an interesting car and though I have yet to drive one it appears to be a very fun car to drive. But for that money there are many cheaper and more safe choices over the questionable quality of the brand.

Alfa like any other brand that has been damaged needs to re earn the trust of the public and a high priced car like this is not the way to do it. Also the many recalls the corporation does not instill trust.

Now I see Sergio wants to sell stock on the F1 team at Ferrari. If he is not gone soon he will bring this all down.

I am just shocked he did not say he was going to merge with GM again so they can have more dealers?

It is not too late to save Dodge and Chrysler but it needs to be done now and be done on their own platforms not Fiat and Alfa.

  • Upvote 2

Share this post


Link to post
Share on other sites

They should build 380 Alfa Romeo dealerships.  They spent like $6 million last night advertising a car that won't sell.  The Guilia I'm sure is a good car, it gets good reviews, I just don't see them selling them in mass quantity to justify the cost to develop it and market it and distribute it.

Share this post


Link to post
Share on other sites

I believe it is high time to take FCA out back and bury it deep in the ground with a shovel and Lyme. There is nothing from them that needs saving here (speaking of Fiat and Alfa in general, not Dodge, Jeep, RAM, and Chrysler).

Share this post


Link to post
Share on other sites

THis is not the best idea, that is for sure.  IMHO, Get the Fiat brands into existing Chrysler/Dodge/Jeep dealerships you have now.  Make sure Alfa is accessible.  An interesting tidbit is that FCA was within 400 retail sales of Ford last month so all the direness is not as bad as it seems.  I am thinking the belief has to do with the fact that once the factory expansions are done they will finally be able to provide enough Wranglers and Ram pickups, no to mention the fact the Wrangler pickup will be ho right out of the gate.  I do know that Chrysler dealerships are rare here so this one location i can see adding one maybe 2.  380 is WAY optimistic though. 

Share this post


Link to post
Share on other sites
28 minutes ago, surreal1272 said:

I believe it is high time to take FCA out back and bury it deep in the ground with a shovel and Lyme. There is nothing from them that needs saving here (speaking of Fiat and Alfa in general, not Dodge, Jeep, RAM, and Chrysler).

I agree with what you say, but am thinking it might be time to reitre Chrysler with their single minivan. Move it to Dodge and focus on Dodge, Ram Jeep. If you want to keep Chrysler, then time to return to the history of Chrysler as a luxury brand above dodge.

Share this post


Link to post
Share on other sites

If Sergio really wants to merge with someone he should consolidate brands.  The reason no one will merge with them is Jeep is all that the other car companies want.  These rest actually makes them less attractive to a Honda, Toyota, Ford etc to buy.  And more dealers doesn't make them look like a better buy either.

Share this post


Link to post
Share on other sites

I'm sure things are not as bad as they seem though. But I've seen this kind of frivolity before. Even the idea of conflict within the company and its contractors or partners, should be a signal....I don't check FCA stock price, but... I think secretly....investors are going with Sergio. If I was stuck deep like this, this kind of frivolity to offload brands you do not want to keep....it might be a consideration.

My first, and best instinct here is that Sergio wants all FCA US LCC brands to tank, and some domestic or foreign automaker to bail them out and take that responsibility off of Fiat's hands by buying them cheap. It's better at this point I think to sell the American brands that are not strong....like Chrylser or Dodge for cheap...than to keep them and fill their product starved lineup. 

He wants to offload the American brands, spend as little as possible for them, and probably try to make Fiat, just Fiat brands, the Italian ones, Alfa, Maserati....like the equivalent of Buick and GMC in terms of differentiation but fit in brand family, but same platforms and shared components. Ferrari then becomes their Cadillac. And Fiat brand continues to be the awful Fiat brand.

I think remaking the Chrysler vans into Pacifica was a decent enough choice, but given that almost all of the fresh product after seems to be some kind of performance variant of an exisitng cars or trucks....

Jeep got a new Compass...but like, I don't understand any appeal for it other than the badge and getting the trailhawk. Every other crossover will do crossover things better, for probably a lower price too. Here is an example of branding.....for the availability of Trailhawk, every crossover that is FWD based from Jeep makes a lot of compromises, or uses the 2.4 Tigershark. The Grand Cherokee and Wrangler are untouchable, THEY ARE THE TRUE JEEP, and JEEP AT IT'S BEST. The rest of the Jeep's their trailhawk versions is like almost to me....like an off-road themed version of how Mercedes made an AMG for the CLA and GLA and Audi has the S3...SQ3 planned too....you see where I'm going? Yes, they are Jeeps and they sell.

Capitalizing on brand value, it's just that easy. Build a brand, and whore it out! That's how it works, as much as no one seems to go after Jeep for doing so. But Jeep has a unique selling proposition. There's nothing like a Jeep, and even the compromised products still have enough Jeep quirks to be able to fit within the lineup. And THEY DID a very smart thing to have every Jeep model to have it's own character, own version of a malleable design. Because that's the same as how the Grand Cherokee and the Wrangler, are so different in appearance...and at some level, function. Even the Commander was not a LWB GC....

 

Anyways, yeah.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Who's Online   0 Members, 0 Anonymous, 26 Guests (See full list)

    There are no registered users currently online



  • Similar Content

    • By William Maley
      Mini has been struggling in the U.S. for the past few as more consumers shun small cars. The brand which expected annual sales to total 100,000 vehicles by 2017, peaked at about 66,500 models in 2013 according to Automotive News. Sales through the first ten months of the years have totaled 37,359. This isn't good news for the 127 standalone Mini dealers in the U.S. as it makes it tough for owners to justify the investment. In 2016, 45 percent of Mini dealers reported being unprofitable. A year later, that number rose to 54 percent.
      "As a dealer and a manufacturer you have a vision of where the brand is going, and you have to prepare for it. In this case, the vision now isn't what it was when some of these stores were built," explained Jason Willis, a member of the Mini National Dealer Council and general manager of fixed operations at Willis Auto Campus in Des Moines, Iowa.
      Mini's parent company, BMW is considering various options to help improve profitability. One of the options on the table is allowing dealers to integrate Mini into their BMW stores. To make sure the brands stand apart, Mini is looking into having a separate showroom with dedicated employees for sales and service.
      "We've given a lot of flexibility for the dealers to present ideas. This is to help make sure that, until our next wave of product, and the market becomes more favorable, our dealers each remain a strong and going concern," said Thomas Felbermair, vice president of Mini Region Americas.
      But there comes an issue with this idea. Mini has 31 dealers that don't have a BMW dealership that they can integrate into. A spokesman for Mini said they "are looking at additional forms of support for stores that remain fully exclusive," but didn't expand into how they plan on doing that.
      Source: Automotive News (Subscription Required)
    • By William Maley
      Mini has been struggling in the U.S. for the past few as more consumers shun small cars. The brand which expected annual sales to total 100,000 vehicles by 2017, peaked at about 66,500 models in 2013 according to Automotive News. Sales through the first ten months of the years have totaled 37,359. This isn't good news for the 127 standalone Mini dealers in the U.S. as it makes it tough for owners to justify the investment. In 2016, 45 percent of Mini dealers reported being unprofitable. A year later, that number rose to 54 percent.
      "As a dealer and a manufacturer you have a vision of where the brand is going, and you have to prepare for it. In this case, the vision now isn't what it was when some of these stores were built," explained Jason Willis, a member of the Mini National Dealer Council and general manager of fixed operations at Willis Auto Campus in Des Moines, Iowa.
      Mini's parent company, BMW is considering various options to help improve profitability. One of the options on the table is allowing dealers to integrate Mini into their BMW stores. To make sure the brands stand apart, Mini is looking into having a separate showroom with dedicated employees for sales and service.
      "We've given a lot of flexibility for the dealers to present ideas. This is to help make sure that, until our next wave of product, and the market becomes more favorable, our dealers each remain a strong and going concern," said Thomas Felbermair, vice president of Mini Region Americas.
      But there comes an issue with this idea. Mini has 31 dealers that don't have a BMW dealership that they can integrate into. A spokesman for Mini said they "are looking at additional forms of support for stores that remain fully exclusive," but didn't expand into how they plan on doing that.
      Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      When Ford introduced the GT, they made it very clear it would be a limited run affair. 500 models would be built over the course of two years. Then the company expanded the amount to 1,000 vehicles that would be built over four years. Now, Ford has expanded the pool of GTs again.
      An additional 350 GTs will be built, bringing the grand total to 1,350. This also means a longer production run. Previously, Ford was going to wrap up production in 2020, but has pushed it back to 2022. If you were one of the many people who applied for a GT and didn't get one, Ford will be opening the application process one more time beginning on November 8th and have it running for 30 days. Prospective owners will find out if they got the approval early next year.
      “By extending the Ford GT production run for a limited period, we’re able to maintain the exclusivity of the ultra-desirable supercar while offering the ownership experience to a greater number of customers,” said Hermann Salenbauch, Ford Performance director.
      Somehow, we doubt many Ford GT owners will have the same view.
      Source: Ford
      Ford Increasing GT Production To Make Ownership Dreams A Reality For 350 More Supercar Fans
      Due to the popularity of Ford GT, Ford is raising the number of supercars it will build to 1,350 – up from 1,000; Ford GT production will run for a total of approximately six years Ford is re-opening the final owner application process for select global markets on Nov. 8; prospective owners can submit their applications at FordGT.com for 30 days  Previous applicants need to confirm or modify their original application to be considered in this final application window to own a Ford GT Dearborn, Mich., Oct. 18, 2018 – Ford Motor Company is increasing Ford GT production to 1,350 vehicles after more than 6,500 applicants raced to sign up for the original 1,000 cars allotted in 2016 – even before the car recaptured LeMans glory later that year.
      “The response to our Ford GT has been unprecedented, with initial demand outstripping supply by more than six-to-one,” said Hermann Salenbauch, Ford Performance director. “By extending the Ford GT production run for a limited period, we’re able to maintain the exclusivity of the ultra-desirable supercar while offering the ownership experience to a greater number of customers.”
      Ford is re-opening the application window to customers hoping to join the exclusive group of Ford GT owners starting Nov. 8 for select global markets. Prospective owners will be able to submit their applications for 30 days at FordGT.com.
      Successful applicants will work with the Ford GT Concierge Service for a personalized purchase experience of cars produced in the 2020 to 2022 calendar years.
      Production of the Ford GT – powered by a twin-turbocharged, 3.5-liter EcoBoost V6 engine and featuring a carbon fiber architecture, active aerodynamics and 216 mph top speed – began in December 2016. 

      View full article
    • By William Maley
      When Ford introduced the GT, they made it very clear it would be a limited run affair. 500 models would be built over the course of two years. Then the company expanded the amount to 1,000 vehicles that would be built over four years. Now, Ford has expanded the pool of GTs again.
      An additional 350 GTs will be built, bringing the grand total to 1,350. This also means a longer production run. Previously, Ford was going to wrap up production in 2020, but has pushed it back to 2022. If you were one of the many people who applied for a GT and didn't get one, Ford will be opening the application process one more time beginning on November 8th and have it running for 30 days. Prospective owners will find out if they got the approval early next year.
      “By extending the Ford GT production run for a limited period, we’re able to maintain the exclusivity of the ultra-desirable supercar while offering the ownership experience to a greater number of customers,” said Hermann Salenbauch, Ford Performance director.
      Somehow, we doubt many Ford GT owners will have the same view.
      Source: Ford
      Ford Increasing GT Production To Make Ownership Dreams A Reality For 350 More Supercar Fans
      Due to the popularity of Ford GT, Ford is raising the number of supercars it will build to 1,350 – up from 1,000; Ford GT production will run for a total of approximately six years Ford is re-opening the final owner application process for select global markets on Nov. 8; prospective owners can submit their applications at FordGT.com for 30 days  Previous applicants need to confirm or modify their original application to be considered in this final application window to own a Ford GT Dearborn, Mich., Oct. 18, 2018 – Ford Motor Company is increasing Ford GT production to 1,350 vehicles after more than 6,500 applicants raced to sign up for the original 1,000 cars allotted in 2016 – even before the car recaptured LeMans glory later that year.
      “The response to our Ford GT has been unprecedented, with initial demand outstripping supply by more than six-to-one,” said Hermann Salenbauch, Ford Performance director. “By extending the Ford GT production run for a limited period, we’re able to maintain the exclusivity of the ultra-desirable supercar while offering the ownership experience to a greater number of customers.”
      Ford is re-opening the application window to customers hoping to join the exclusive group of Ford GT owners starting Nov. 8 for select global markets. Prospective owners will be able to submit their applications for 30 days at FordGT.com.
      Successful applicants will work with the Ford GT Concierge Service for a personalized purchase experience of cars produced in the 2020 to 2022 calendar years.
      Production of the Ford GT – powered by a twin-turbocharged, 3.5-liter EcoBoost V6 engine and featuring a carbon fiber architecture, active aerodynamics and 216 mph top speed – began in December 2016. 
    • By William Maley
      Since becoming the CEO of Ford, Jim Hackett, and his management staff has had a difficult time of convincing folks about the ambitious restructuring plan that will see the lineup become more dependent on crossover and trucks, and job cuts. One group that has been quite worried about the plan are dealers.
      "There's been a lot less exposure to senior management. There's just not enough information flowing down to dealers about where the company's headed," said Jack Madden, owner of Jack Madden Ford to Automotive News.
      Ford is hoping to ease dealers later this week at the company's national dealer meeting in Las Vegas. Aside from seeing a number of new products, including the next-generation Escape and Explorer, Hackett and his team will be taking questions from dealers about the future direction of the company. 
      "It's the right medicine at the right time," Rhett Ricart, CEO of Ricart Automotive Group in Groveport, Ohio.
      "I think it will be a huge jolt for dealers' attitudes."
      Dealers aren't the only group who are wanting more information. Ford's 70,000 salaried workers around the world have been told that the $11 billion restructuring plan will include job cuts, but not providing any specifics on numbers or how or when the cuts will take place. The cuts were announced in a video message sent to employees.
      "In Ford's history, we have streamlined organizations but we rarely removed work, causing each team member to have to do more with less," Hackett said in the video, according to a transcript Ford provided to AN. Employees were told the upcoming changes would be made using "a cascading process that will involve many of you" and that they will work to eliminate "low-value" tasks. 
      "While redesigning the organization is important and it's necessary work, it's not going to be easy. But it is fundamental to us becoming the business we need to be," said Hackett.
      Ford say the message wasn't about job cuts and "said employees have appreciated the way it is handling the news." But AN reports that some employees became confused with the message being provided. Some experts say giving employees information about impending job cuts early on allows for more preparation and gives more time to look for another job. But some point out the way Ford announced the move could actually damage morale. 
      "In an absence of any information, it's stressful. People are going to be looking for more direction from the company," explained Carol Olsby, a human-resources consultant and author.
      Source: Automotive News (Subscription Required)

      View full article
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×