autoevolution
 

FCA To Add 400 U.S. Dealerships To Win Back Market Share

If it were not for the Jeep and Ram brands, Fiat Chrysler’s U.S. operations would have faltered under their own weight. Bad decisions and bad planning put Fiat Chrysler at a disadvantage in the States, but the automaker decided that enough is enough.
Chrysler Pacifica 77 photos
Photo: Chrysler
2017 Chrysler Pacifica minivan2017 Chrysler Pacifica minivan2017 Chrysler Pacifica minivan2017 Chrysler Pacifica minivan2017 Chrysler Pacifica minivan2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica2017 Chrysler Pacifica
As per two dealers and an FCA US LLC source, Automotive News reports that Fiat Chrysler will try to win back market share by adding as many as 400 new dealerships. Including the existing 2,500 dealers, that'd be 4,900 in total.

The cited publication reports that the expansion is already underway in some areas of the country. In Houston, Texas, three dealers specialized in Chrysler, Jeep, Dodge, and Ram products are getting ready to set up shop. Considering that Houston’s metro area already has 14 Fiat Chrysler Automobiles dealers, the question is, is this expansion actually sustainable? In a nutshell, not really.

U.S. new car sales peaked in 2016 to 17.55 million, a figure that the industry will have a hard time surpassing in the foreseeable future. Fiat Chrysler sales fell approximately 10 percent in December 2016, accounting for 192,519 vehicles, with year-to-date sales remaining flat from the year prior. In theory, then, FCA US LLC does the right thing by expanding its dealership network.

But looking at the bigger picture, more dealers doesn’t necessarily translate into more sales for FCA’s lesser brands. The culprits are Chrysler, on the one hand, and Dodge on the other. Chrysler’s current lineup consists of the Pacifica minivan and the 300 full-size sedan. Remember what happened to Lancia due to its resistance to adding new models? Indeed, Lancia morphed into an Italy-only brand that only sells the old and unexciting Ypsilon city car.

Dodge, for that matter, has one of the oldest model lineups in the industry. The Charger and Challenger are a testament to that, even though the SRT division tries to keep interest alight with Hellcats and Demons. The bottom line is, Fiat Chrysler’s bet on more dealerships will prove to be in vain if the automaker doesn’t revitalize its lesser brands with all-new models.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Mircea Panait
Mircea Panait profile photo

After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories