Despite high hopes as Fiat’s U.S. dealers this summer finally got a new model to sell – the 500L – the new car has failed to boost the brand’s U.S. sales.
Factory figures shown to dealers indicate that only about 45 percent of Fiat dealerships are profitable. But many of these share some expenses with Chrysler Group dealerships, meaning even fewer would be profitable if treated as stand-alone businesses.
The average Fiat dealership sold about 17 units per month this year, compared with the average Chrysler Group dealership’s 64 units. For perspective, Fiat’s annual sales are roughly tracking what Chrysler Group promised from the beginning. Marchionne, who also heads Chrysler, predicted in 2010 that Fiat would sell about 50,000 units annually in North America. Through September, the annual rate in the United States alone was about 44,000.
“I think most dealers have been disappointed in the performance of their Fiat dealerships,” said Alan Haig, president of automotive services for Presidio Group, a San Francisco financial services company that brokers dealership sales.
After a 24% decline in September, Fiat brand sales are the same – 32,743 – as they were through nine months of 2012. Demand has stagnated despite the addition of the 500L compact hatchback and more Fiat dealerships than last year.
Via Automotive news
) - Monday, October 7th, 2013 - filed under Fiat
, Sales Reports
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