F&I Management & Training

Struggling dealers

He forecast that weaker dealers will struggle when the scrappage scheme comes to end in early 2010 and it will be "very difficult" for them.

For its part, the Fiat network has lost a quarter of its network - 40 dealers - over the past two years but new appointments have brought the network back to 163.

Humberstone aims to grow this to 185 by year-end and 200 by the close of 2011. The company recently took part in the Motor Trader Open Points show to target new recruits to the franchise.

Increase size

Humberstone said he would like some of the dealers in the network to increase the size of their showrooms to display more of the Fiat range. He said up 35-40 per cent of dealers in the network had the potential to expand.

Humberstone said Fiat had not made a profit contribution to its parent in Italy for about 20 years.

At the current currency rate for Sterling against the Euro, it is running at a loss. It needs a rate of Euro1.25 to £1 to be in profit, he said.

DATED: 23.12.09

FEED: MT