US: Chrysler plans more Fiat dealerships as 500 misses sales goals

Bloomberg News - Chrysler Group LLC, falling behind its North American sales goals for the Fiat 500, plans to open 20 more U.S. dealerships during 2012's first quarter to sell the Italian brand.

North American sales of the Fiat 500 this year through October reached 20,940, a rate below Chief Executive Officer Sergio Marchionne's forecast of 50,000 for 2011. The rollout was hindered by complications in opening new Fiat stores instead of using existing space at Chrysler dealerships.

Olivier Francois, head of the Fiat brand worldwide, started a U.S. marketing campaign featuring singer Jennifer Lopez in September. He is overseeing the introduction of the performance version of the 500, the Abarth, scheduled to reach showrooms early next year.

"The process of launching a new brand with three models, the 500, Cabrio and Abarth, is a process that takes time," Francois said in an interview in advance of the Los Angeles Auto Show. "We continue to increase our customer awareness."

Chrysler has opened more than 120 U.S. Fiat stores this year, Richard Palmer, chief financial officer, said during Fiat's third-quarter earnings call with analysts on Oct. 28.

Gualberto Ranieri, a Chrysler spokesman, said 130 U.S. stores should be open by year's end and Francois said the number will rise to 150 by March 31.

"I think that's a good level," Francois said. "What is very important is not the quantity but the quality."

Chrysler, based in Auburn Hills, is majority- owned by Turin, Italy-based Fiat SpA. Marchionne is CEO of both companies.