FCA Opening Dealers En Masse in Hopes of Boosting Sales
As many as 400 new U.S. dealerships could be opened as part of a push to increase FCA sales.
Two dealers familiar with the plan and an FCA source shared the information with Automotive News, adding that in some markets, the expansion is already underway. Currently, FCA has about 2,500 dealerships in the U.S. so an additional 400 is a sizable increase for its Chrysler, Jeep, Dodge and Ram brands. But in some markets, the new dealers will be bumping shoulders with existing ones. In Houston, where the expansion is already rolling out, three new Chrysler-Jeep-Dodge-Ram dealerships are in various stages of opening, joining the 14 already in the area.
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Dealers speaking to Automotive News said the added stores are the automaker’s attempt to win additional U.S. market share, but in some locations, they’re just a few miles from existing stores. The automaker’s brands have seen its sales slow as of late, dropping 1.5 percent of market share in the fourth quarter of 2016, compared to a year prior. Sales in the U.S. have fallen since September, even though the overall market has remained stable.
[Source: Automotive News]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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I'm not sure this is a good idea. They were required to close a bunch of stores during the bankruptcy filing nearly 10 years ago, which was good for the dealers that remained as their profitability went up.