Fiat’s revamped UK operation expects continuing progress throughout 2009 but its dealers must be ready to deal with a different type of customer attracted by the success of the Fiat 500 supermini, a senior executive said.
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Even drivers of luxury cars are downsizing to the 500, Fiat GB managing director Andrew Humberstone said during the media launch of the Qubo mini-MPV.
“Small is becoming big and the market is coming to us – it is more socially acceptable to be in a small car and a totally different profile of customer is buying our product,” Humberstone said.
“Bentley and Ferrari owners are now driving Fiat 500s because it’s actually cool to do so.”
This, he said, was a key area of opportunity but dealers needed to be fully prepared to work with such customers, who have very different demands from the brand’s traditional budget-conscious buyers.
Fiat sold 15,187 500s here in the UK in 2008, having planned for 14,000. Humberstone said production constraints held the brand back – he had requested 16,000.
Since joining the UK sales and marketing unit in December 2006, Humberstone has overseen a ‘root and branch’ revamp of the Fiat brand in Britain, ranging from organisational restructuring to reducing used vehicle stocks, and benefiting from better quality products.
He also toured the entire dealer network – and then made major reductions.
“We had 165 dealers at the start of 2008, of which 120 were doing 93% of our volume. It’s not rocket science to say 45 dealers were only doing 7% and those dealers are no longer with us,” he said.
Fiat ended 2008 6.9% down in a UK market off 11.3%, a significant proportion of which Humberstone attributed to exiting ‘negative contribution’ sectors, in particular the rental market.
A 3% UK market share in September was Fiat’s best result for that month for four years while the 2.8% December tally was the best in seven years.
Humberstone is aiming for a 5% share by 2011, for which he will need to recruit more dealers, but he is in no hurry.
“I will need effectively 200 dealers, based on an average sale of 500 cars per dealership – but that’s the long-term plan.
“We are ready to invest in the network but I’m not prepared to fill an open point for the sake of filling it, and I am being very, very particular in my choice of partners.”
Andrew Charman
