Fiat Facing Troubling Times in Italy
Fiat is facing some hard times ahead as many dealers in Italy, their main market, are going bankrupt during this holiday season. This is most evident by actually visiting Italy and seeing the hustle and bustle in the streets as people race to find the perfect gift, only to look at the Fiat dealership and see it completely empty.
Fiat says that the competition in the market is stiff. Those who are looking for a new car are traveling to numerous dealerships in order to find the best price. Because of this, Fiat may be knocking down huge percentages of their cars in order to make the sale, and in the end they may have sold a car but they are still damaging the company.
Not all the dealerships in Italy are at a risk for declaring bankruptcy, it is only affecting a third of the dealerships. This is expected to take place in the next eighteen months. And when it does happen it is going to affect around 15,000 people as it will terminate this many jobs. The reason for the sudden decline in the dealerships is being blamed on the government, as they are no longer giving incentives for people to shop for a new car.
For the past eight months, Fiat has been in a slump. During the Christmas season they usually see people coming in to buy cars for their loved ones, however, that is not the case this year. Making it a very sad Christmas for those that depend on the sales during December to pay for their own family holidays.
Thus far, it looks like the company is going to have to close a few dealerships in an effort to stay afloat. However, there doesn't seem to be any government help coming in as of yet. It is going to, indeed, be a sad Christmas for Fiat in Italy.