CarsDiva’s Blog

An Auto Industry Insider’s View…From A Woman’s Perspective

Posts Tagged ‘Sergio Marchionne’

That’s Amore… a little bit of Italiano in the U.S.

Posted by carsdiva on November 18, 2010

Chrysler has finally released its full list of 130 [potential] dealerships across the U.S. that will enthusiastically sell the Fiat brand.   They’ve all received letters of intent, but must first fulfill the requirements to secure their spots.

A small car to compete in the B-car segment, the Fiat 500, is currently being introduced to the U.S. at the Los Angeles Auto Show.  Although some dealers are expected to receive a few of the vehicles in December, none will be delivered to customers until January.  This will be a 2012 model of the vehicle, and the major launch is planned for March.

There are plans to add additional dealers to the already designated list, which will blanket the 119 markets, identified as areas with high growth potential for small cars over the next several years.

Fiat will join the Chrysler dealerships, but vehicles will be in an allocated area known as the “Fiat Studio,” accompanied by accessories, and more importantly, trained experts on the product.  The North American version of the vehicle will be manufactured in Chrysler’s Toluca, Mexico plant, with the initial model being a 2-door hatchback.  Plans for a convertible and an electric model are in the works, but don’t expect to surface until later in 2011.

AutoNation, Inc., (largest publicly traded auto group), will take the lead on dealerships sporting the new Fiat.  They’ve reported to have received seven letters of intent.  Meanwhile they announced that they feel well-positioned with this vehicle, particularly with the fluctuating gas prices.  Being able to offer a smaller, more fuel-efficient vehicle will be to their benefit.

As far as expected numbers for the first year?  Chrysler has hopes to sell 50,000 Fiats in 2011, and then to increase this number to approximately 78,000 by 2013.  The current model has been referred to as an “icon” in Italy…. but then again, so has the Ford Fiesta for that matter.  And actually on a greater scale, it’s the number one selling small vehicle (B-car) in Europe.  That being said, although this is a smart move for Chrysler, these dealers have their work cut out for them.

Like the Fiesta, the Fiat has been modified to adapt to U.S. safety and emissions standards.  Last sold in the U.S. in 1984….(Fiesta was last sold in 1980).  A bit of a follow-the-leader trend here?  Well, I’m just pointing out the facts that I’ve noticed– the actual numbers will do the telling…

And how about Alfa Romeo?  Well it could be another opportunity down the road for these dealers, but we won’t know until next year.  I can say one thing, Marchionne is definitely keeping them busy…

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