Chrysler to add Fiat dealer network 07/20/2010
Chrysler will add a separate network of Fiat dealers in order to sell the company's upcoming 500 model, per the terms of the company's alliance.
After being bailed out by the U.S. government, Chrysler entered into an alliance with Fiat, where Chrysler promised access to the American market for the company's compact 500 model in exchange for fuel-efficiency technology and global distribution. Now, Chrysler will enact a dealership network separate from its existing one to market the cars in the U.S, according to the Associated Press.
Fiat has not sold cars in America since the 1980s. Its first foray will be the 500, a European-inspired mini car with an emphasis on efficiency. The company has plans to introduce other models if the 500 sells well.
Chrysler is allowing its current dealers to apply to sell the vehicles. However, the dealers must be able to provide separate facilities, sales and service teams in order to do so.
The Fiat deal is part of Chrysler's long road to recovery after the economic collapse left the company the most battered of Detroit's Big Three. However, profits have increased this year and the company plans to have 16 new or updated vehicles by 2011, signifying a major overhaul for the brand.