Another Dealer Quits

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Another Dealer Quits

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So….

Drove past my nearest fiat dealer today to find it is more or less entirely rebranded as “easy peasey” car sales, there are still plenty of fiat logos left up but I’m not sure I saw a single fiat on the forecourt.

It’s part of the desira group which does still sell fiats, a look on their site shows across multiple “fiat” dealerships in the area they have about 75 fiat cars, which seems a lot till I think back to when I was in the trade and our one site in Norwich had 100 cars at any given time.

I think it’s fair to assume that selling fiat 500s and the occasional panda is probably not profitable enough to warrant having a dedicated dealership.

I was talking to my brother today who is well connected in his businesses to all the local dealerships, apparently Volvo is completely dropping the sale of new “cars” and moving to SUV only, apparently anything that’s not an SUV or cross over just doesn’t sell now
 
So….

apparently anything that’s not an SUV or cross over just doesn’t sell now
That was very obvious during my visit to the Seafield automobile "village" yesterday. Multiple different manufacturers represented with pretty much nothing in the showrooms that wasn't an SUV "chunky" looking thing. You had to go outside to the used vehicles to see something more traditional and even then there were precious few "proper" estates. The trouble with these SUV type things is that although they look quite big they don't have the length. so although the cargo space volume is sometimes more even than the older estate model it replaces a lot of it's in vertical height, you've lost the length, which is what makes an estate so "usable" if you're a DIY/hobby sort of person.
 
You had to go outside to the used vehicles to see something more traditional and even then there were precious few "proper" estates.
if I were looking to replace my car I’d give serious consideration to a traditional estate, mainly because they are so much bigger inside than most crossovers.

The one that has caught my eye is the Arteon Shooting Brake, but these start at an eye watering £42k

The golf estate starts at £28k and the passat at £35k

Now going off on a tangent

In 2021 when the Arteon shooting brake launched it was only £33k, so somewhere in two years the price of that new car has gone up £9k which is madness.

I remember around the second lock down going for a walk past the fiat dealership and was nearly floored by the fiat 500 that was inside the closed showroom with window price of £22k !!! For a fiat 500!!

Car prices have gotten seriously out of control. Now £9k might be something that someone buying a £35k+ car can stomach
But when you’re looking for something cheep and cheerful, having to pay £9k more on top of a car that might have only been £10k to start with and you start to see where it’s going wrong for fiat
 
Traditionally I would say fiat have always been seen as a cheaper brand, not in terms of price, but quality. And there are many better built small cars on the road for the same money.

There is a trend towards bigger cars, I would have thought more 500Xs and 500Ls would have worked, but they are still quite rare. Again, there are better cars for the same money.

Other than the quirkiness or trendiness of the 500, the range is not appealing. Even the higher spec 500 has a cheapness to them compared to other cars.
I have to agree with a lot of this. I remember when the grande came out and it was stunning compared to other cars of the time, but the dashboard was just horrific and suffered terribly from warping in the heat. The mk2 punto dash was just a massive lump of grey plastic, and the seat materials especially on the older mk2 was horrible.
The brava/bravo/Marea group of cars had those horrible rubberised door handles that fell apart in the sun, again nice looking cars poorly executed.
The 500 had no end of little common problems like breaking door handles and boot wiring, all small niggling faults but just highlight the cheapness of the cars and how they were very slap-dash.

I actually think they got everything right on the later puntos but then by 2018 it was a 12 year old car so they’d had plenty of time to get it right. The problem being once they had a good product they didn’t market it and then dumped it.

As I stated above fiat is synonymous with making cheap cars, the issue is now they are not cheap and people won’t put up with poor materials, dodgy fabrics and little faults random parts breaking every 5 minutes on a car costing £20k+
 
but then by 2018 it was a 12 year old car so they’d had plenty of time to get it right. The problem being once they had a good product they didn’t market it and then dumped it.
I think that is the story of a lot of cars, towards the end of their lifecycle they get all the problems worked out and they are good cars, and marketing decide they are old and need we new cars with a whole new set of problems.
 
Worth noting also that the Corsa C and D are B-segment cars so you would expect a bit more refinement.
I've no idea how you are grading your cars. To me there are small, medium and large (and luxury, sports, 4x4 etc). 500, piccanto, corsa, punto, fiesta, etc - all small cars, the differences you see are just semantics.
 
I've no idea how you are grading your cars. To me there are small, medium and large (and luxury, sports, 4x4 etc). 500, piccanto, corsa, punto, fiesta, etc - all small cars, the differences you see are just semantics.
The same way the industry, car manufacturers and governments classify them globally;


Note, the examples on Wikipedia show the Fiat 500 in the A segment and Corsa in B segment. It’s not just some arbitrary thing I’ve made up.

To some extent, you should really consider cars in the same segment as competitors to one another.
 
To some extent, you should really consider cars in the same segment as competitors to one another.
Nah, they are all just small cars. When choosing a small cars, people dont go is it A segment, or B segment, they go a 500, a fiesta, a corsa....
 
Speaking of prices a few years ago a new Tipo was something like 17-18kthe

The only option now is a hybrids version starting at £28k
That’s what winds me up about the current market. The same cars at near double the price. Didn’t the Tipo start at 14k?

It’s nasty what they’re at currently. Artificially increasing the price of existing ICE cars and wasting taxpayer money on grants with the new EVs to ‘close the price gap’. When most of us wanted them to close the gap by bringing EV prices down to earth and reality.

Also, this ‘crossover’ mini SUV thing isn’t consumer choice. It’s manufacturers realising they can’t fit big ass batteries into normal hatchbacks and saloons without the height at a lower cost. They’re pushing them on us through better deals / lower interest as they phase out the normal cars in their ranges. No way do I buy that more than the senior segment prefers those. Higher running costs and compromise on style for .. nothing?
 
Also, this ‘crossover’ mini SUV thing isn’t consumer choice. It’s manufacturers realising they can’t fit big ass batteries into normal hatchbacks and saloons without the height at a lower cost. They’re pushing them on us through better deals / lower interest as they phase out the normal cars in their ranges. No way do I buy that more than the senior segment prefers those. Higher running costs and compromise on style for .. nothing?
The vast majority of SUVs and cross overs on the road are not electric or hybrid. The demand for SUVs increased long before people were regularly buying electric cars.

SUVs and Crossovers are very much driven by public demand. Even fiat are trying to claim they have a cross over version of the Tipo, the Panda is now marketed as a tiny SUV and with the 500x and 600, almost all of fiats cars are either an SUV or have a “crossover” option.

It literally has nothing to do with batteries.
 
Nah, they are all just small cars. When choosing a small cars, people dont go is it A segment, or B segment, they go a 500, a fiesta, a corsa....
Yep totally agree, looking at what constitutes a A segment car there are only about 6-7 models currently on sale, fiesta and corsas are much more common… but with Ford dropping the fiesta, it sort of proves the point that no one is buying these now. Ford have already ditched the Mondeo because no one was buying them. Ford like everyone else is moving to SUVs and Crossovers like the Puma and Kuga
 
New Car Sales Figures

Abarth - BOTTOM - Down minus 70% YTD
Fiat - Down minus 46% in June and -17.66 YTD
Fiat - Market Share 1.00% in 2023 and 1.43% in 2022

Alfa are in a worse state!

Those numbers are not looking good. Fiat have never had a high market share compared to other general brands but the minus figures are really heavy!

I suppose the plus side is that assuming you want electric/hybrid I suspect you could drive a real hard bargain and get a good deal????
Stelantis are quite happy as Fiat is expendable. You can all drive PSA products with Fiat badges! Oh and by the way they expect you to like it. Its called progress....... Its a shame we are looking at a monopoly at this rate. What would SIr like Stelalntis or VAG group?

Desira Norwich now Suzuki.

A bit of healthy competition would be nice, but sadly it is disapperaing.
 
Stelantis are quite happy as Fiat is expendable. You can all drive PSA products with Fiat badges! Oh and by the way they expect you to like it. Its called progress....... Its a shame we are looking at a monopoly at this rate. What would SIr like Stelalntis or VAG group?

Desira Norwich now Suzuki.

A bit of healthy competition would be nice, but sadly it is disapperaing.
I would go as far to say that in order to compete globally (with the other Europeans (namely VAG), then with the South Koreans who rose to their current success in the last decade, the strong competition from the Japs too, and now most dangerous of all, the incoming abundance of Chinese crap that will due to its destruction pricing win consumers over in their masses is to blame.

And unlike a decade ago, it's a race to deliver affordable, desirable and practical EVs now. The folks who could barely build a decent engine might just turn out to be the ones who build a great motor / battery. The folks who built a bullet-proof, desirable diesel / petrol engine might turn out to be crap at EVs?

In Europe, manufacturers are forced by legislation to comply. I'm sure there is a lot of industrial monetary incentives to invest in the research and designs well as set up the factories which helped them. VAG haven't ignored the legislation or the EV stuff, albeit it's biting them now with not being able to sell em as well as they hoped. PSA (prior to Stellantis) have also taken the future seriously and invested in the EV tech. Fiat did with the 500, but although it tops the last decades EVs it doesn't really seem to compare favourably on the headline stats to some current new EV arrivals but it sure comes at a huge cost to recover FCA Fiat's R&D that went into it. Long story short, I think Fiat's position and actions have meant in order to survive in the new mandatory EV future (at least within Europe, which of course is its primary market) it hasn't had much choice but to group up. Much to the death of the company we love.

In Europe we'll have VAG, Renault / Mercedes and Stellantis. It's probably - legitimately - not worth their time giving too much thought to managing ICE cars and EVs. and will those companies really hate the fact that after around 6 years, you as-good-as need a brand new car or battery worth half the cost? If you've ever had the misfortune like I have of owning a 5 year old MacBook Pro, you'll find the battery gets next to useless after a few years. Sure, you can replace it, but only Apple has the parts. They don't allow resellers to stock them. They'll do it alright. For around half the cost of the price you paid new. Why? Because the battery only comes glued to the bottom case, which also has the keyboard and mouse pad as one piece. Oh, it's not worth it? Might as well just check out the new models, we'll give you a few £ (not much) for yours.

Not sure what the Korean government / situation with EV forced legislation. But they're taking it very seriously. Probably because of their desire / focus on trying to become a global success. South Korea is exceptionally talented at electronics. I don't like their cars, but they've got a healthy R&D budget and healthy sales figures around the globe. And positive press attention, even if they have done a bit of VAG like sponsorship here and there.

Japan, they see through the illusion. They aren't all in on EVs. With Toyota being the biggest / one of the most valuable brands in the world, they also can't only cater to Europe / first world countries without falling behind in the Americas, poorer parts of the world etc. They are even farther off than we are at an EV capable grid. They can't even keep the lights on for a week straight. Toyota won't give up their share in these parts of the world by failing to deliver ICE cars. They also won't give up their position in Europe etc, so they're delivering some effort in some EVs but I wouldn't say it's their best effort. They know something we don't, or rather, their government isn't as keen on passing legislation that might make public figures appear to care about the environment in the short term, but rather, they won't go all in on something that might just prove to be no more useful than diesels were at helping the planet.

Toyota can afford to do this as Europe isn't its be all and end all. VAG, Stellantis ... they have no choice. For our individual car brands to survive against the Koreans and now the Chinese influx, they're going to need shared R&D, shared platforms, killer figures on the range / reliability / perceived desirability driving sales. Fiat's old model of relying on older tech such as the venerable FIRE engine has worked well with buyers like all of us folks, but if its forced to go all in on EVs, that won't fly. There isn't really any old tech. The old tech in EVs is like the faster horse in the days of the first cars. Barely fair to compare. Too much to lose to bank on that by going it alone.

I understand why Fiat has to die and do this. I for one won't buy a PSA derived Fiat unless we know and can be fairly certain that it has enough Fiat where it matters. Hopefully it remains a strong influence over design and the direction of Stellantis. But all I'll say it, the interesting Citroen models stopped existing when Peugeot took over. I think it's safe to say PSA was Peugeot with a slightly increased budget to allow Citroen to take take superficial design risks whilst solely depending on Peugeots engines / platforms.

Personally, I think (and hope until I can be convinced otherwise) that the EV thing will certainly be forced on us. I think (and again, might get proven wrong) that when the 6-7 year mark comes and not everybody is trading in their car every 3 years, enough people are going to have enough with how they've spent twice as much than before on a new car and it's lasting half as long. Look at it this way, a decade ago a Ford Focus started at £14k. You'd easily get 15 years from it (and any car) with care and maintenance - not going over the top. Now, the latest model costs £30k. Let's imagine that was a BEV. I wouldn't be so sure today's lithium batteries will be so dependable come 6/7 years of heat and rapid recharge cycles. Twice the cost. Half the life. And for what, less emissions in the city - great for the lungs of our inner city friends. But it doesn't help the planet much, not inherently. And it's one hell of an assumption to think that all the electricity will come from renewable sources. Also dismissed questions surrounding where all this material will come from and the labour ethics. But... I think whilst we're privileged enough in Europe to give this whole idea a try, we're also quite free to vote with our money. EV sales can and I think will stall massively unless they can pull some miracles out of thin air in the next few years. That will change legislation. Politicians who get support for these silly, half baked ideas as banning ICE and pulling the dates forward, can equally get positive reputation points when the time gets closer by delaying and scrapping it altogether.

We have 7 years to go. That means, if what I say (and a lot of others fear) comes true, that's plenty of time to signal with our buying choices what the legislation ought to support.

That means for the privileged folks who can afford to choose an EV today, that's enough time for it to become a lawn ornament on a national scale. Enough reporting, talking at the water cooler in the office, struggling with money because of the crappy investment of a now dead-on-the-driveway failed battery EV that they can't sell or shift. Enough time for the UK and Europeans to say "we bought your EVs, and they don't work. I refuse to pay this much for something that doesn't work in half the years" - if that's how it pans out.

At least Fiat can't go down alone. They'll go down as part of Stellantis. As one of the EUs biggest employers / industry / tax payers. If they go down as a result of the same decisions we're seeing them have no choice but to respond to today, then they're pretty much part of something that cannot fail completely. It'll be bailed out by the same government that caused it to ditch its path and have to team up with competition.

Back to the dealers. They're in it for the ride. With new Stellantis models they'll get the new steel they need. They'll get a well invested in EV platform and tech combo. At the end of the day, the 500L failed and the 2008 / 3008 continues to sell well. Same with the 208 / C3. The DS3 was even a big success sales wise. Despite its shortcomings. PSA didn't bother figuring out how to make decent alloy wheels or reliable parking sensors (old tech now) but they made the effort to keep their models fresh, "stylish" and priced competitively / well specced. And that was the difference. That's what kept folks coming back, trading in - there was a new car to trade in for from the 207, 208, new 208. The new buyers don't keep the cars long enough to care about the thing us tinkerers and DIY mechanics find to be recurring faults. The new buyers are all the dealers care about, right? Mobility seems to be all they care about here. Guaranteed income customers who for some reason, keep buying new cars every few years and yet don't care much about the trim or spec or features. There's a lady up my street who's had a brand new grey EcoSport, brand new yellow EcoSport, brand new blue EcoSport and right now, a grey EcoSport. I don't know how the Ford dealer here does it. But I'll tell you why the Fiat dealership doesn't. Because they closed all but one a few years ago :-(

(I hope this makes sense. Running test software on this computer and it keeps regurgitating sentences from a few lines above...)
 
I would go as far to say that in order to compete globally (with the other Europeans (namely VAG), then with the South Koreans who rose to their current success in the last decade,
Korea is a very odd situation. I was first working there 15-ish years ago and 99% of the cars on the road there were korean. And not like the cheap UK korean cars of the time, there were high spec car not exported for some reason. Their government put huge taxes on anything imported to boost the internal korean companies, and forced the big 5 (hyundai, samsung, LG, etc - samsung made cars in korea!) to compete in each market to boost the competitiveness for the public. They also had a pride in buying korean, if you owned foreign products or cars, then that was viewed as disloyal to the country.

It's the exact opposite of what you find in the UK in terms of government encouraging manufacture and competitiveness.

I've not been to korea in several years, it would be interesting to see how they are handling the EV world.
 
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Korea is a very odd situation. I was first working there 15-ish years ago and 99% of the cars on the road there were korean. And not like the cheap UK korean cars of the time, there were high spec car not exported for some reason. Their government put huge taxes on anything imported to boost the internal korean companies, and forced the big 5 (hyundai, samsung, LG, etc - samsung made cars in korea!) to compete in each market to boost the competitiveness for the public. They also had a pride in buying korean, if you owned foreign products or cars, then that was viewed as disloyal to the country.

It's the exact opposite of what you find in the UK in terms of government encouraging manufacture and competitiveness.

I've not been to korea in several years, it would be interesting to see how they are handling the EV world.
That’s quite interesting. In technology, appliances and cars the South Korean are finding success around the globe as of lately

I don’t mean to make this an overly political topic. But, it interesting how when South Korea has policies like that, we view it as great. Same with India’s rules on only being able to operate a store if you manufacture a % of your product in India. We clap and say ‘why don’t we do that’. But.. when our government incurs tariffs on other countries (namely EU), or a few years ago, the likes of Trump implementing similar policies of making it harder to import goods to protect national / internal manufacturing and companies, we seem to point the finger and call them names and ‘nationalists’ as if it’s a dirty word. Yet sometimes as you say, those policies have worked for other countries in terms of protecting their manufacturing and now, certainly with South Korea, they have a thriving car industry and are one of the leaders on EVs. Similarly with India, Apple recently opened up production there just to be able to open stores there. It’s powerful to observe how these forces work
 
That’s quite interesting. In technology, appliances and cars the South Korean are finding success around the globe as of lately

I don’t mean to make this an overly political topic. But, it interesting how when South Korea has policies like that, we view it as great. Same with India’s rules on only being able to operate a store if you manufacture a % of your product in India. We clap and say ‘why don’t we do that’. But.. when our government incurs tariffs on other countries (namely EU), or a few years ago, the likes of Trump implementing similar policies of making it harder to import goods to protect national / internal manufacturing and companies, we seem to point the finger and call them names and ‘nationalists’ as if it’s a dirty word. Yet sometimes as you say, those policies have worked for other countries in terms of protecting their manufacturing and now, certainly with South Korea, they have a thriving car industry and are one of the leaders on EVs. Similarly with India, Apple recently opened up production there just to be able to open stores there. It’s powerful to observe how these forces work
Rather than nationalist, US and UK, which is what they are doing with populism, their economic policies are isolationist, whilst giving no incentives except huge tax breaks which works out for the top earners.
It’s not actually incentivising workers to work and companies to invest/innovate like in the ‘so called’ tiger economies.
 
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