FPV hangs tough

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John Mellor’s GoAuto News New operation working to secure sub-$20K Fiat 500, more RHD models With more than 2,500 dealerships already signed up, don’t get left behind. more info > For a new source of quality leads call 1300 662 133 or email services@carsguide.com.au SUBSCRIBE FREE: www.GoAutoMedia.com Fiat ‘guaranteed to grow’ By HAITHAM RAZAGUI A FIAT 500 priced from less than $20,000 – at least $3000 lower than at present – is a top priority for Fiat Chrysler Group Australia. The factory-owned outfi t believes it has more scope to expand the range than previous Fiat and Alfa Romeo distributor Ateco Automotive, which offi cially handed over the keys on May 1. Fiat Chrysler Group Australia managing director Clyde Campbell said expansion of sporty premium marque Alfa Romeo will take longer in the absence of new products, but likens the Alfa brand to Jeep in that it has strong heritage and qualities that just need bringing to life with the right vehicles and marketing. Despite Mr Campbell’s rallying of right-hand-drive markets to secure production of more right-hook products, there is little progress on the development of a RHD version of Fiat’s Chinese-built Dodge Dart-based Viaggio sedan. Mike Manley, the global president and CEO of Jeep and COO of Fiat-Chrysler Asia-Pacifi c, told GoAuto he sees “much Clyde Campbell bigger potential” with the Alfa Giulietta, from which the Dart/Viaggio platform originates, and “would want the guys to focus on that fi rst”. However, he said there is “potential for us to take (Viaggio) to many markets” after its Chinese launch in September or October. In the meantime, Mr Campbell told us he is looking at the right-hand-drive Fiats sold in the UK and was working out “how much of what they are doing can I replicate here”. “They’ve got Punto, Grande Punto, Panda, a much bigger range on 500 than we’ve got, they’ve got Doblo – there are a number of Fiat variants we don’t have but are being produced in right-hand drive,” he said. With the well-received retro-styled Fiat 500 already established in the Australian market but sales constrained by premium Aug 15, 2012 Page 10 500 TwinAir pricing, Mr Campbell said bringing the ‘Bambino’ down to a more affordable level could lead to “some serious volumes”. Without including the hotted-up, even pricier Abarth line-up, the Australian Fiat 500 range is limited to the hatch and convertible in just one variant, both powered by the 0.8-litre two-cylinder TwinAir petrol engine and priced from $22,990 and $25,990 respectively (plus on-road costs). Sales of the 500 are up 9.9 per cent to the end of July, with 210 non-Abarth models fi nding homes, but Mr Campbell believes he can do better and “would love to have” a sub-$20,000 Fiat 500. “I look at what is available in righthand drive in the UK and there are variants I could actually buy (retail) and sell them here under 20 grand,” he said, pointing to the £9660 ($A14,329) 1.2-litre Pop variant. Continued next page Where smart people buy and sell cars.
John Mellor’s GoAuto News Forty one car brands and hundreds of competing dealerships means one thing... Friction. SUBSCRIBE FREE: www.GoAutoMedia.com Fiat ‘guaranteed to grow’ Continued from previous page “When I use that language to my boss he gets pretty angry so I say, ‘Well, if you don’t sell them to me cheap enough, I will’. “We don’t have a sticker price that will make people drop their drawers and say ‘wow’, but we are being quite creative in how we can get benefi ts in at the price point. “People are attracted to the car, (but) we need to broaden the range.” Mr Campbell explained that Ateco had brought in quite a highly specifi ed 500 because its business model focused on profi tability within a fi nite distribution agreement timeframe. “When it becomes a subsidiary operation (as with Fiat-Chrysler), our view is literally forever so we can take strategic avenues instead of tactical,” he said. Although it is still early days for the new Fiat-Alfa distributor, Mr Campbell is confi dent, saying: “We are certainly guaranteed to grow.” This view was echoed by new local Fiat and Alfa Romeo brand chief Bob Moorcroft, who said the local operation “has no choice but to grow it”. Mr Campbell said the company is now undergoing a positioning review, with the aim of adjusting both pricing and content across the Fiat and Alfa Romeo line-up. “Maybe there are other variants and It takes a serious lubricant to keep things running smoothly at the AADA Convention and FUCHS Lubricants Australia is a proud sponsor of the event. Fuchs, the world’s largest independent lubricant supplier with global headquarters in Germany, has developed and manufactured technologically advanced lubricants in Australia for over 75 years. trim levels that will allow us to reach certain price points and things like that,” he said. Existing Fiat products including the Punto small car and Linea sedan are believed to be on the agenda for Australia, with Fiat Chrysler Australia corporate affairs director Lenore Fletcher commenting: “If it’s got a steering wheel on the right-hand side, we’ll look at it.” Ms Fletcher singled out the 500L wagon unveiled at the Geneva show in March and the still-secret ‘500X’ SUV glimpsed at a media preview in Italy last month as models that will come under close scrutiny. In coming years there will be a product bonanza from Alfa Romeo, with exciting products such as the mid-engined 4C sportscar due in 2014, a new Spider co-developed with the Aug 15, 2012 Page 11 next-generation Mazda MX-5 arriving in 2015 and the 159-replacing Giulia sedan slated for a 2014 launch. Mr Campbell likened the current Alfa line-up, which is limited to the MiTo light hatch and Giulietta small car, to a dormant brand. “There is going to be some really great product coming out of Alfa going forward and it’s going to be quite a big brand for us,” he said. “It’s just going to take a while for us to get there. “The reason we’re so excited about Alfa is its latent brand qualities that are similar to Jeep. “It has signifi cant heritage and it resonates (with people) so it just needs to be brought to life. Once that kicks in, we’ll need to ensure supply.” FULL STORY: CLICK HERE More reports – page 13 500L Profi tabilty First The 2012 AADA National Dealer Convention Surfers Paradise Marriott Resort & Spa • 5-7 September 2012
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