Jump to content
  • Greetings Guest!

    CheersandGears.com was founded in 2001 and is one of the oldest continuously operating automotive forums out there.  Come see why we have users who visit nearly every day for the past 16+ years. Signup is fast and free, or you can opt for a premium subscription to view the site ad-free.

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, 28 Guests (See full list)

    There are no registered users currently online



  • Similar Content

    • By William Maley
      Fiat Chrysler Automobiles is none too pleased with the Indian automaker Mahindra & Mahindra Ltd as they're planning to sell an off-road vehicle that looks very much like the original Willys Jeep.
      Bloomberg obtained a complaint filed by FCA to the U.S. International Trade Commission on August 1st. The document claims that Mahindra's Roxor infringes key characteristics of Jeep's signature design - namely the “boxy body shape with flat-appearing vertical sides and rear body ending at about the same height as the hood.”
      “They are a nearly identical copy of the iconic Jeep design. In fact, the accused product was ‘modeled after the original Willys Jeep."
      The Roxor is a small, two-seat off-road vehicle. There is a lot of resemblance to original Jeep design and there is a reason for that. Beginning in 1947, Mahindra got a license to build the Willys CJ3 for the Asian market. They would do so until 2010. At this point, Mahindra introduced an updated model known as the Thar that meets India's road going passenger vehicle standards and looks like a 1990's Wrangler.
      Now the Roxor isn't being sold as road-legal vehicle. Instead, Mahindra is selling this as a side-by-side off-road utility. That means its not road legal. Which brings us to the next key part of FCA's complaint. The company is arguing that Roxor imports "threaten it with substantial injury as they are underselling Jeeps." This is due to Mahindra manufacturing the parts and creating a knock-down kit, which is then shipped to a plant in the Detroit area for final assembly. We're not sure about this partly due to the arena the Roxor competes in, but also the price. The model begins at just under $15,500. Comparable models from Polaris and Honda begin at under $10,000.
      While Mahindra has had some success in the U.S. with tractors, they haven't had the same when it comes to automobiles. Previously, the company was planning to offer a diesel pickup through a distributor. But plans were scrapped and Mahindra would find itself in a lengthy court battle. The Roxor is the next attempt at possible entry for Mahindra to enter the automotive market. They have spent almost a quarter-billion dollars for a new assembly plant where they currently employ around 300 people. Last November, the company announced a $600 investment and plans to employ as many as 670 workers by 2020.
      Source: Bloomberg

      View full article
    • By William Maley
      Fiat Chrysler Automobiles is none too pleased with the Indian automaker Mahindra & Mahindra Ltd as they're planning to sell an off-road vehicle that looks very much like the original Willys Jeep.
      Bloomberg obtained a complaint filed by FCA to the U.S. International Trade Commission on August 1st. The document claims that Mahindra's Roxor infringes key characteristics of Jeep's signature design - namely the “boxy body shape with flat-appearing vertical sides and rear body ending at about the same height as the hood.”
      “They are a nearly identical copy of the iconic Jeep design. In fact, the accused product was ‘modeled after the original Willys Jeep."
      The Roxor is a small, two-seat off-road vehicle. There is a lot of resemblance to original Jeep design and there is a reason for that. Beginning in 1947, Mahindra got a license to build the Willys CJ3 for the Asian market. They would do so until 2010. At this point, Mahindra introduced an updated model known as the Thar that meets India's road going passenger vehicle standards and looks like a 1990's Wrangler.
      Now the Roxor isn't being sold as road-legal vehicle. Instead, Mahindra is selling this as a side-by-side off-road utility. That means its not road legal. Which brings us to the next key part of FCA's complaint. The company is arguing that Roxor imports "threaten it with substantial injury as they are underselling Jeeps." This is due to Mahindra manufacturing the parts and creating a knock-down kit, which is then shipped to a plant in the Detroit area for final assembly. We're not sure about this partly due to the arena the Roxor competes in, but also the price. The model begins at just under $15,500. Comparable models from Polaris and Honda begin at under $10,000.
      While Mahindra has had some success in the U.S. with tractors, they haven't had the same when it comes to automobiles. Previously, the company was planning to offer a diesel pickup through a distributor. But plans were scrapped and Mahindra would find itself in a lengthy court battle. The Roxor is the next attempt at possible entry for Mahindra to enter the automotive market. They have spent almost a quarter-billion dollars for a new assembly plant where they currently employ around 300 people. Last November, the company announced a $600 investment and plans to employ as many as 670 workers by 2020.
      Source: Bloomberg
    • By William Maley
      Sergio Marchionne, the former head of Fiat Chrysler Automobiles who is credited for saving Chrysler and Fiat has passed away today at age 66 due to complications from shoulder surgery. 
      “Unfortunately, what we feared has come to pass. Sergio Marchionne, man and friend, is gone,” said FCA Chairman John Elkann in a statement this morning.
      Marchionne came into the spotlight back in 2004 when he was named CEO of Fiat. He was Fiat's fifth CEO in less than two years and had a big task ahead of him. The Italian automaker was struggling as it had lost more than 6 billion Euros (about $7 billion) the year before. Marchionne was somehow able to pull Fiat from the brink by closing various plants, laying off thousand of workers, getting a $2 billion payment from General Motors to settle past contractual obligation, and expanding the company's car lineup. It worked as Fiat would become profitable a year later.
      In 2009, Marchionne led Fiat to acquire a 20 percent stake into beleaguered Chrysler following the 2008 financial crisis. Only a few years later, Fiat would buy up the rest of Chrysler and become Fiat Chrysler Automobiles. He would oversee the reinvention of Alfa Romeo, expand Jeep into other markets, and spin off Ferrari into its own separate company. Other parts of FCA haven't quite worked out, most notably Chrysler and Dodge which has seen both of their lineups shrink.
      Marchionne was not like your normal CEO. He was known for wearing black pullover sweaters and jeans which made him stand out at various events. Marchionne was also known for being direct and speaking his mind (for better or worse).
      Next April, Marchionne was planning to step down as CEO and announce his replacement. But health complications over the weekend caused FCA to decide his successor. That person would be Mike Manley, head of Jeep and Ram Trucks.
      Source: Automotive News (Subscription Required), Bloomberg, Fiat Chrysler Automobiles

      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

×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.