The Fiat 500 will begin rolling into the first U.S. showrooms by December.
As many as 119 U.S. dealers will shortly learn that they’ve been chosen from close to 1,000 applicants hoping to represent Italy’s Fiat brand as it prepares its return to the U.S. market.
The first of those retailers should be up and running before the end of the year, according to Chrysler Group LLC, Fiat’s American partner, with sales to begin in December with the launch of the Fiat 500 minicar.
The decision to go with outlets in 119 markets suggests that Fiat is taken its time before picking dealers. The brand originally stated a goal of having 165 stores operating in the U.S. by the end of 2011, and 200 in business further down the road.
“We have carefully considered each of these dealer proposals looking for the best locations and the most creative plans,” said Peter Grady, Chrysler Group’s Vice President of Network Development and Fleet Operations. “We are thrilled with their level of interest in securing the Fiat franchise and in the innovative proposals they have submitted. We’re excited to be at the point where we now can start appointing our Fiat dealer network.”
It’s been two decades since Fiat pulled out of the American market, a victim of quality problems and the resultant slump in sales.
To re-launch the brand, Fiat will turn to the little 500, its smallest offering, which has developed something of a global cult following. The basic model is expected to be followed by several variants, most likely including an electric version and possibly a performance model produced by Fiat affiliate Abarth.
While existing Dodge, Chrysler and Jeep dealers were clearly given preference for the new Fiat franchise, it is possible some other retailers may eventually get a Fiat store. Ultimately, the U.S./Italian alliance is looking to get Fiat dealers to put the brand in its own standalone showrooms but initially, at least, the maker may have to “dual” with existing Chrysler brands.
Fiat plans to use Ally Financial, the former GMAC, as its lender of choice. Ally also services Chrysler and General Motors, though the latter maker appears to be taking steps to create its own, in-house, or “captive” finance subsidiary.
The addition of Fiat bucks industry trends. While other makers have, on the whole been trimming back their brand offerings – notably Ford and General Motors – Chrysler and partner Fiat are adding more marques. Not only is there Fiat, but last year the pickup side of the Dodge franchise was split off to form its own brand, dubbed Ram.
Meanwhile, Fiat is still formulating plans to revive the U.S. franchise of its upscale Alfa-Romeo brand, though Volkswagen has openly expressed interest in buying that nameplate from the Italian automotive conglomerate. So far, however, Sergio Marchionne, who serves as CEO for both Chrysler and Fiat, has dismissed that proposal.