Fiat to double dealers as first solo operation starts

AUSTRALIA’S first dedicated new Fiat dealership became a reality two weeks ago and the number of Fiat Cars outlets is expected to double within two years.

Since the Punto’s release in July, Fiat’s passenger car retail outlets have occupied space within the 22 dealerships for Alfa Romeo – another Ateco Automotive brand in Australia – but all that is expected to change by late 2008, when sales of the new 500 micro-car, the last of Fiat’s three core models to go on sale, are in full swing.

"The 500 will trigger dealership appointments and begin the unhooking of Fiat from Alfa Romeo," according to the general manager for Fiat cars in Australia, David Stone.

While regional Alfa/Fiat dealerships will continue to be shop-in-shop arrangements, metropolitan cities and major provincial centres like Geelong, the Gold Coast, the Sunshine Coast, Rockhampton and Townsville will offer separate outlets for both brands.

Penrith (NSW) was the first to do so and will be followed by Dandenong (Vic) in January, while Springwood (Qld) is expected to be the third.

Once the short-term Alfa and Fiat new model rollout has been completed, Mr Stone said the Alfa dealer network will swell from 22 to 28 or 30, while the number of Fiat outlets will grow to between 35 and 40, including co-dealerships.

"Fiat has to be able to grow and cannot be strangled by Alfa Romeo," Mr Stone said. He said several Holden, Ford and Mitsubishi dealers had expressed interest in the Fiat franchise, which was encouraging.

"Dealers are interested in Fiat because they’re not one of 200 or so," he said.

Fiat Cars president Luca de Meo said that although Alfa Romeo and Fiat models complimented each other, sales volume was required to give Fiat adequate retail attention - and more dealership space was required to introduce more new models.

"We don’t have enough space in the showrooms, but until we achieve a certain level of volume the dealers will not dedicate us a salesman or square metres," he said.

"We need to do things one after the other, so we’ll start with the Punto, then we’ll have the Bravo and then the Cinquecento.

"There are many others that we actually have to consider for import here – but only when we have the right set-up from an organizational point of view to handle everything."