After declining UK sales in the last few years (and a massive 50% drop in 2005), due partly from avoiding unprofitable daily rental and fleet deals, Fiat Auto (UK) is hoping the new Grande Punto range will turn around its fortunes.
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Despite total sales of just 36,825 cars last year, including 17,000 of the old Punto, the UK still remains Fiat’s largest European market for the model line outside Italy.
Now parent Fiat Group in Italy is finally back in profit, it has been possible to give the UK operation a huge cash injection and install a new senior management team to launch the critical new model.
For 2006 Fiat Auto (UK) will have a £7 million marketing budget to promote the Grande Punto and re-establish the Fiat brand.
The dealer network has also been told that it is time to change.
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By GlobalDataAll 170 were recently brought together for the first time at a major conference and the automaker’s new management team made it crystal-clear that its UK dealers will have to improve their performance to keep the brand alive.
Dealer training is the first step in improving sales performance, according to managing director Giulio Salomone.
“This is the biggest of big days for Fiat in the UK. Our dealers and their staff have applauded with enthusiastic commitment the new Grande Punto because of its looks, its price and the whole package it brings to a very competitive market sector,” he said.
“We and our dealers must improve the customer experience, give better customer satisfaction and we now have the right models for them to sell. If we do all that, Fiat is back.”
Fiat wants to double UK Punto volume from 17,000 to 35,000 units a year and achieve a 2% market share – around 50,000 sales.
“Everything is in place for us to succeed. More than 100,000 new left hand drive Punto models have been sold in Europe since its launch at the end of last September, more than our expectations,” added Salomone.
The fully redesigned Punto Grande range will cost £7,594 to £12,295 in the UK – it starts at £1 more than the outgoing model.
Like rivals in the competitive UK ‘supermini’ segment, the range is vast with 13 models available from launch and more engine options coming later. There is the choice of three-or five-door body and five trim levels. Standard equipment includes the anti-lock braking now mandatory in Europe, remote central locking, front airbags, electric front windows, a CD player, electric power steering and follow-me-home headlights.
Sixty-five per cent of UK customers are expected to chose the three-door versions while diesels are expected to account for up to 15% of sales – this relatively low uptake is because the car is being targeted at low-mileage private buyers rather than fleet customers.
Nonetheless, diesels predominate in the engine line-up. There are six engine options initially – two petrol and four common-rail diesel units – and an additional petrol motor arrives later.
Depending on the engine chosen, five or six speed manual transmission options are standard while a five-speed sequential shift automated manual will become optional later this year.
The £7 million marketing budget for the new Punto range will be spent on an ‘Open Your Eyes’ television campaign right through 2006. This will include 6,000 advertising spots equivalent to 50 hours of airtime, supported by national newspaper, magazine and internet spots.
Fiat reckons it will have reached 40 million UK people with its campaign by the end of March. It will also publicise the car with ‘building wraps’ in major cities and will will be the automaker to use ‘live headlight’ posters where the cars lights flash to attract attention.
