Fiat dealers seeking help from Marchionne due to poor sales

Article by Christian Andrei, on December 24, 2010

Amid the excitement of the holidays, it is quite remarkable that Fiat S.p.A.’s showroom is nearly empty. But the carmaker pointed out that those who are coming in the showrooms as potential buyers are serious about looking for a vehicle. Cristina Fermi, a sales assistant at the dealer, said that the consumers visit several dealers in order to determine the best offers.

She explained that this risks cannibalizing the market as carmakers may be at a losing end as they try to get a new client.

The Italian dealers' association said that within the next 18 months, about a third of Italy's 3,600 dealerships may go bankrupt; hence, the loss of about 15,000 jobs with them, as car sales decrease dramatically after the expiration of government incentives.

Last month, deliveries in the country, Fiat's largest market and Europe's third-largest auto market, decreased by 21% last month. On Oct. 21, Fiat CEO Sergio Marchionne told analysts that auto sales in Italy will continue to decline in the first quarter.

Marchionne declined to provide further details. Marchionne said that for the upcoming year, Fiat's Italian business will continue to be profitable this year. Currently, the Italian market is waiting for Fiat's profit potential.

Fiat raised its 2010 forecast over the rise in demand in emerging markets. Last October, the company said that full-year trading profit will be at least 2 billion euros ($2.6 billion), an increase from its previous target of up to 1.2 billion euros.

On Jan. 3, the company, which also controls Chrysler Group, is dividing into by spinning off its industrial business. In a note to clients Nov. 22, Bank of America Merrill Lynch analysts led by Fraser Hill said that 30% of sales are exposed to an Italian car market and that it might fall 7% in 2011. With these factors to consider, he believes that the outlook is tough. [via autonews - sub. required]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries