New CEO sends Fiat, Chrysler SA back to the gym

13th February 2017

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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“We realise that we have to get ourselves fit again and I am committed to achieving that,” says new CEO at Fiat Chrysler Automobiles South Africa (FCA SA), Robin van Rensburg. “We have not been as versatile in the last while as we should have been.”

Van Rensburg joins the Italian-US group from Jaguar Land Rover South Africa, where he held the position of sales director. He succeeds Marco Melani, who will return to the Fiat Chrysler head office, in Turin, Italy, to resume his responsibility for marketing for Africa.

FCA SA imports the Fiat, Fiat Professional, Abarth and Alfa Romeo brands into SA, as well as the Chrysler, Jeep and Dodge brands.

Fiat sales dipped sharply last year compared with 2015, with Chrysler taking nothing short of a beating on the showroom floor.

Fiat sales in South Africa dropped by 25%, from 1 929 units in 2015, to 1 447 units in 2016. Chrysler sales declined by 56%, from 6 797 units in 2015, to 3 013 units in 2016.

The overall new-vehicle market in South Africa dropped by just more than 11% in 2016 compared with 2015.

Van Rensburg says there is no reason “to panic” over the decline in sales as vehicle importers were especially hard-hit by the recent weakness of the rand against most major currencies.

He also considers his appointment – as a South African au fait with the local economy, as opposed to the Italians previously leading the organisation – as a statement of trust in the future of the Fiat and Chrysler brands in the domestic market.

To The Gym
What does “getting fit” mean precisely?

“It is about our product offering and the finance offers we have on the table. We should be retail fit,” explains Van Rensburg.

“We should be able to react quickly, providing the right offer to prospective customers. It is about positioning our products better in the digital space. It is about focusing on the guaranteed future value of our products and building a used vehicle brand, with the appropriate warranties. It is also about having diesel products available when the market demands it, for example.”

Van Rensburg’s first goal is to focus on building a strong, sustainable dealer network and company.

“Once we are fit, we can be bold. Then we can look at products that have not been in our scope before, such as the Panda cross-over. We can even, in the medium to long term, look at the local assembly of products.”

A number of new model launches should provide a boost to local sales this year, says Van Rensburg.

Product introductions include the Alfa Romeo Giulia (set to arrive in March), Abarth 124 Spider and Abarth 595, Fiat Tipo (scheduled for an April launch) and the extension of the Fiat Professional Fullback range.

The Stelvio cross-over will make its local debut in the last quarter of 2017, with the new Jeep Compass set to hit the road during the same period.

The Tipo can bring some volumes to FCA SA, as it a “rational product aimed at rational buyers”, says Van Rensburg.

“But we need to put an offer in place that makes sense.”

The Tipo will compete with the likes of the Toyota Auris and Mazda 3.

The current best-seller in the FCA SA stable is the Jeep Renegade.

10 000 Units
Van Rensburg believes the South African new-vehicle market will bottom out this year, with 2017 sales flat compared with 2016.

FCA SA will have to grow its share of the market through conquest sales – luring buyers from other brands, he adds.

Ultimately, Van Rensburg would like to see Fiat and Chrysler sales reach 10 000 units a year by 2020.

“That would be a good business.”

Fullback bakkie sales – a new segment for the Italian brand – have not reached the targets FCA SA had hoped for, at around 500 units last year.

“We are hoping for 1 000 units this year,” says Van Rensburg.

Edited by Creamer Media Reporter

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