The CEO of Chrysler in South Africa, Trent Barcroft is to take charge of Fiat SA as well, a local report said.
The Financial Mail said the possible unravelling of some dealer links, following the “semimerger” of Chrysler and Fiat in SA, “underlines the complex web of past relationships in the SA and global motor industries”.
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Chrysler and Fiat each have three vehicle brands in South Africa: Chrysler has Jeep, Dodge and Chrysler for while Fiat has Fiat, Alfa Romeo and Fiat Professional (commercial vehicles).
Chrysler and Fiat will continue to operate as independent companies, but a central management committee now oversees both, the paper reported.
Marketing and corporate affairs head Guy Franken said the companies will, for now, retain separate accounting systems, head offices and spare parts warehouses, but nothing would be sacred once rationalisation happens in earnest.
“We will integrate whatever makes sense,” he said.
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By GlobalDataThe Financial Mail said two new dealerships — in Midrand and Port Elizabeth — have opened in recent weeks, offering Chrysler and Fiat vehicles in separate showrooms though setting up more like that will not be straightforward.
Many Chrysler dealers also sell Mercedes-Benz vehicles, a throwback to the days of DaimlerChrysler. In addition, many Fiat dealerships sit alongside Nissan showrooms. Nissan SA brought Fiat back to SA some years ago and assembled the Uno locally. [In a similar deal, the SA Mercedes plant once assembled Hondas – ed.]
Franken said: “These are relationships built up over many years, and many of them have been very good for Chrysler and Fiat. We won’t rush in and change what works.”
Mainly because of the success of its Jeep brand, Chrysler has been outselling Fiat by over two to one in South Africa. Franken said one of his priorities was to reinvigorate Fiat and he sees potential in its commercial vehicles division.
Fiat and Chrysler have merged operations – under Fiat – here in UK and, in Australia, Chrysler Australia is taking over Fiat and Alfa distribution from independent importer Ateco Automotive.
In India, Fiat and Tata Motors are ending their distribution agreement under which the Indian automaker’s local dealers have sold Fiat vehicles.
