Having a well designed distribution network and adjusted to the needs of customers and the country in which a product is sold is something essential for a company. This maxim must comply even better if the company that we are talking about belongs to the automotive sector.
Them brands of cars live of the sale of their cars and if a region of a country not is well covered, to good secure another competitor it will have and in she is will make strong. This it knows well Fiat Chrysler Automobiles (FCA) and for reverse the loss of sales that are suffering in the United States have decided that the best solution passes by open new dealers official.
As we have learned, within the FCA in United States-striate expansion plans the opening of about 380 new dealers. With them the network end of distributors official authorized in the country would amount to a total of 2,850 to 2,900 centers.
Within these plans, in FCA will they focus on strengthening some areas such as Houston. The idea that have in the signature is open five new stores to cover the area Metropolitan. With the total number of dealerships in Houston (city and nearby areas) it would amount to about 17.
However, in the Italian-American Group have come to this conclusion seems that has not sat well to centers that are already operating. By what you see, several official centers have complained that the competition would be much greater and therefore cars prices would fall dramatically.
Obviously this is the case, since increased demand prices fall more, but if the shops are open with care and are well organized should not be counter-productive for the evolution of the Group’s sales. However in FCA are aware that the profitability of each dealer could be less, but nonetheless should be as well, since they must strengthen other areas of your business.
Source – Fiat Chrysler Automobiles (FCA)
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