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Don't see why there would be any problems, Fiat are back on the up after a big slump. I'd be more worred for Renault, with the 10% sales decline they suffered last year!
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FIAT have a new man in charge in the UK since last October and sales have increased in 2007 - but from a very low base.
The problem for dealers is that they have essentially a 2-car range from Monday (Grand Punto and 500). 500 looks expensive (starts at around £8k) which is a lot for what it is - I think its built in the same Polish factory as the Cinqcento and Siecento were - so quality could be dodgy. either things will take off and it will do OK, or there will be good initial sales, followed by lots of pre-regs and 0% finance offers - the usual FIAT pattern in other words.
By and large dealers are not good and parts supply is poor.
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The problem for dealers is that they have essentially a 2-car range from Monday (Grand Punto and 500).
Have I missed something Aprilia, or are you just saying that the rest of the range is immaterial?
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Have I missed something Aprilia or are you just saying that the rest of the range is immaterial?
I'm saying that only these cars are likely to sell in any sensible numbers. I see a GP now and then. Can't say I've seen a late model Panda, Brava or Sedici on the road.
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The Panda sells well here in the North East, well we've got 2 in our household. The build quality on them is bullet-proof as far as I can make out. OK, they are simple and relatively unsophisticated but the design is well thought out and executed and they are simple to work on. In comparison, my daughter has bought a new Corsa and although it has all the gimmicks there's a lot to go wrong and I suspect repairs will be tricky and expensive.
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We have had a succession of Fiats and our two current Punto`s have been reliable.
Its the shape of the support system rather than the cars themselves that concerns me though as we have had so many dealerships close around here.
It seems to me that protecting the `name` is a pre-requisite for any business though, in particular when there have been problems in the past.
Surely to maintain customer confidence in the `name` (On the eve of a new model launch) you would do anything possible to stop it being associated with franchise closures and receivership?
If you could, you would, surely.
You would buy out the dealerships and run them directly to give customer confidence.
But if you don`t, (or can`t) what sort of message does that give to people considering the 500, but also wondering whether to wait for the new Ford KA later in the year.
I think its a real shame because Fiats seem better than other low price competitors.
Galvanising across the range, the jewel of the 1.3 Multijet on a cam chain and hydraulic tappets,
(how many other marques don`t even galvanise?)
At the back of my mind though is a statement from a previous CEO that, allegedly, they could pull out of the UK if the Grande Punto did not do well.
(If that was not doing a so called, Gerald Ratner, what is?)
So which comes first, chicken or egg? because surely confidence in the Marque is a pre-requisite for increased sales.... but if you allow the terms, `closure` and `receivership` to seemingly be paired with the launch of your new model.....
Guess I just don`t understand business models, because there must be something I am missing.
Regards
Edited by oilrag on 20/01/2008 at 07:54
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My local Fiat dealership, in Herford, has also just gone into receivership this week
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Have the Citroen dealership on the same site also gone? (I am assuming that it is the 'Ware' Rd just before the A10 bridge?)
Edited by pmh on 20/01/2008 at 09:35
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quite a few pandas around me. (Harrogate/Ripon). I thought they look interesting - I'd consider one for my OH to run around in. Especially at a little over £5K
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FIAT UK has a surprise new MD Andrew Humbertson a Brit who spent a lot of his childhood in South Africa and much of his adulthood running prestige car multi franchise operations in Gulf states.
So how does this experience fit in with selling low numbers of niche small cars in UK? - I'm sure he's a great chap though!
FIAT is going to sell out of its 18 000 UK allocation of 500s this year and that's going to bring it a lot of attention.
I'm sure its a good car, but there is nothing to suggest it will sell well in UK. It has so far sold well in Italy and France - but then so does the Panda - UK is a different market. UK pricing is rather high - the attractive models start at the best part of £10k, which is a lot for an A-segment car. Also the 'old' 500 was not an icon in the same way that, say, the Mini was, so I'm not sure it will engender the same affection in potential buyers. Cars like this, at this price level, rely a lot on 'emotion' to sell. The GP was supposed to be a wonderful car that would do great things for FIAT sales in the UK, but it hasn't sold well.
I wish FIAT well with the 500, maybe they will finally make some money out of the UK market...
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Although I dont have a fiat dealer for miles, the Grand Punto seems to live in fairly large numbers round here. ( I can see why its a very clean good looking car, but its fair to say this is a lemoncello from Waitrose area) I want the nuovo 500 to do so well, because the sheer chic style of it deserves to.
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but its fair to say this is a lemoncello from Waitrose area
can we hace a translation please ?
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Limoncello [limon'tʃɛlːo] is a lemon liqueur produced in Southern Italy, mainly in the region around the Gulf of Naples and the coast of Amalfi and islands of Procida, Ischia and Capri, but also in Sicily, Sardinia, Menton in France and the Maltese island of Gozo. It is made from lemon rinds, alcohol, water, and sugar. It is bright yellow in color, sweet and lemony, but not sour since it contains no lemon juice.
Translation, its a posh area, where people buy ther food in M&S and Waitrose, (and expect to be able to buy Limoncello from there) where BMWs are seen as common (except the X5 used only for the skool run) and you can end up sitting next to the rich and famous at your local Pizza Express.
The grande punto is chic and happily seen on the driveways of St Georges Hill for use by Tamsin and Gemma.
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So that does make a Landie (a proper one I mean) a sort of a Waitrose Worcester Sauce.
Edited by Pugugly {P} on 20/01/2008 at 17:58
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Yes its chic to turn up at Waitrose in country seat areas in your Landie. You need to be wearing your tweeds and barbour. The back of the landie needs to be full of springers and working lab retrievers (Not the fat ugly show types)
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When I turn up anywhere in my six year old diesel Mondeo estate, I like to think that people will assume that I am rich and famous but a little eccentric and traveling incognito. Instead of the truth..............skint, put upon, downtrodden husk of my former..............................;-)
BTW, Does the above mean that my car would be one those own brand lagers you give to neighbours you don't like at Christmas soirees ?
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Yes the Ware Road site. Not sure about Citroen, I was due to test drive a Fiat and go and have a look at the new 500 and the salesman informed me that all test drives where cancelleed and no cars would be sold
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(about 500) I think its built in the same Polish factory as the Cinqcento and Siecento were - so quality could be dodgy.
To be fair Polish factory is renown of building most reliable Fiats - I don't think there are that many complaints about "dodgy quality" of Pandas rolling out from Tychy factory either, which is why Fiat decided to build their sales recovery milestone - the 500 - there...
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vOn
The factory in Poland, Tychy (sp?), has had a very chequered history and some (very) considerable industrial relations problems. I think the Polish government (or local government) have a hand in running it. FIAT build cars there because it is very cheap.
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I too hope Fiat are successful with the 500.
I think the acid test though will be how fast they can respond to any build faults from the production line.
Allegedly, with the GP, they continued to come off the line for a long time with rack problems and even now there are continuing reports of water in boot double skins, which then cascades over the parcel shelf when the tailgate is opened.
There seems to have been some past attempts from possible sources within (Other Forum) dealerships, indicating that water in the double skin is `normal`.
It seems a great chance for better though if new customers are surfing in from other marques on an `emotional`buy, with the 500.
In my opinion though, an `emotional` purchaser is likely to be less fault tolerant than a pragmatic `appliance` purchaser.
I wish them well.
Regards
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