Beware the man in shorts or tracksuit who walks into the dealer showroom on Saturday morning – it might be the boss.
Six months into his job as managing director at Fiat UK, Andrew Humberstone is making a point of visiting all his 164 dealers – either officially or unofficially.
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“Since coming into the job, I have wanted to avoid the filters and get first hand information,” he said. “I am personally visiting the network, and have been to 85 percent so far. I have had 17 years experience in the retail sector. I like to touch and feel how the business is being run.
“We have to listen to our customers and dealers. The customer satisfaction surveys tell us we have problems with our network and we are addressing this.”
So far this year, 16 dealers have left the Fiat network and 17 new ones have joined. The brand now has 164 dealers in the UK and the plan is to increase this to 200 by 2010. Humberstone said: “When I visit the dealers, I don’t just want to know how they are getting on now. I want to know from each of them how they plan to make money over the next five years. They need to have a clear direction for their business.”
Humberstone has set himself three key challenges:
- Sell more cars
- Improve dealer profitability
- Improve the customer experience.
“This year is going to be very challenging but I believe Fiat in Italy is in a better position than it has been for 50 years. Fiat UK has done well so far and we are on line with our targets. In spite of the economic situation, we are in the best place we could be in terms of the brand, product, quality and the network.”
Humberstone, 43, brings a wealth of global experience to Fiat UK. His most recent role was chief representative for Fiat Group Automobiles China and vice-chairman of Nanjing Fiat, but, prior to that, he worked in various capacities in India, United Arab Emirates, Saudi Arabia, Kuwait and South Africa.
He has a high level of commercial experience in addition to business development management, gained from across the globe. His knowledge and understanding of drawing up and implementing top-level business strategies will be vital as Fiat tries once more to deliver on its promises.
He admits there have been too many false dawns with the brand in the UK. “Yes we have suffered in the past from product quality. We have often had a brand strategy versus budget strategy which [we] have not always met. If Italian brands can deliver on their promise they can do so well in the UK because of the passion for cars and motoring. Our ability to implement a strategy is the biggest problem we face.”
The Fiat 500, he said, has been something of a milestone for the company and its launch was fundamental in terms of repositioning the brand.
“The 500 has given us the opportunity to talk to customers who have never been part of Fiat. We are reaching totally different profiles of customers from company chairmen to students, our oldest customers are aged 83 and our youngest 17 – the appeal of the car is enormous.”
Humberstone said many customers are personalising the 500, adding between £1,500 and £2,000 worth of equipment – alloy wheels and stripes are the most popular additions.
“The car is cool and iconic; it is similar to the market BMW is doing well with in terms of the Mini. This is also a car for absolutely everyone.”
He added: “But we also have an impressive model line up and again we have to get the message across. On Bravo we are offering 48 hour test drives and a five year warranty on Grande Punto.
“On some models we are also offering zero deposits and 0 percent finance. We are also saying if you don’t like the car after 25 days you can bring it back and we’ll refund the money – if you can prove you are buying another vehicle. This is at no cost to the dealer. The question is: are the salesmen getting the message over?”
Hence the weekend visits to the showrooms. For customer service, he benchmarks Virgin Atlantic, Marks and Spencer and Apple – companies which are creative and adaptable to change. Inside the auto industry, it is Toyota.
Humberstone adds, however, that Fiat will not been drawn into heavy discounting as the credit squeeze starts to bite in the UK. “Retail sales are significantly down by 4.9 percent and we have chosen not to be so aggressive in the fleet segment. Looking at the daily rental market, some of the transactions going on are ridiculous and it is obvious some companies are just buying market share. We have to be in the company car and fleet market but on our terms.
Fiat’s other brands, Alfa Romeo and Lancia are also on the comeback trail. Humberstone said: “Alfa Romeo is a good example of where the Fiat brand is going but it does need more products and this is coming in the shape of the Mito and new 147.
“Lancia is next year’s challenge and will fit into the family above Alfa Romeo and below Maserati. We want to create a portfolio of product from Maserati to Fiat 500 – an Italian village.
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