Fiat dealers doubting brand’s future

Fiat dealers are starting to feel the strain as the Italian brand continues to struggle to find a foothold in the United States market. Fiat recently doubled its lineup from just one vehicle to two, but dealers are starting to lose their patience with the slow-selling brand.

Demand for Fiat vehicles was inching upward this year, but a 24 percent decline in September erased any forward progress for the year. Many dealers are now starting to question Chrysler’s loyalty to Fiat and the brand’s future in the U.S. Moving forward.

“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 dealer contacted by Automotive News concurred that sentiment.

“It’s sad to say, but it’s become a stepchild. Chrysler doesn’t want to hear that, but that’s the reality,” the dealer, who asked to remain anonymous, said.

Making matters worse, just 45 percent of Fiat dealers are profitable at this point. Moreover, most of Fiat’s money-making franchises are tied with other Chrysler dealerships, meaning many more might be losing money if they weren’t linked to other storefronts.

Fiat dealers will have to make the best of a two product lineup – which includes the 500 city car and the larger 500L – for the foreseeable future. Fiat says a new model that will help dealers “take the next step” is in the works, but that vehicle isn’t scheduled to arrive until 2015.

Photo by Mark Elias.<![CDATA[
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