FCA Revises Fiat Retail Strategy in U.S.

Fiat Chrysler Automobiles NV will help its struggling Fiat brand dealers in the U.S. by allowing them to integrate their operations with FCA’s Chrysler, Dodge, Jeep and Ram brands.

FCA also vows to simplify inventories by slashing the number of trim levels for variants of its sole Fiat-branded product in the U.S., the 500 minicar, Automotive News reports.

When FCA relaunched the Fiat marque in America in 2011, it insisted dealers set up freestanding Fiat stores with independent budgets for advertising, dealer management systems and outside vendor agreements.

The company also indicated that most Fiat dealers soon would be able to supplement their one-model lineup—the Fiat 500 minicar—with FCA’s Alfa Romeo brand. But reintroducing Alfa at high volumes in the American market has been delayed repeatedly.

Now FCA is reversing its policy about freestanding Fiat stores in the U.S. The new plan encourages Fiat dealers to consolidate their business operations with their Chrysler/Dodge/Jeep/Ram franchises. About 80% of FCA’s Fiat dealers in the U.S. also sell the company’s American brands.

FCA tells AN that operating multiple brands as one entity will save the average dealer about $180,000 per year. Most Fiat dealers in the U.S. average fewer than 10 sales per month, and more than half are operating at a loss, according to the newspaper.