Re: Right hand drive Lancia reintroduction in balance...
Posted: 25 Oct 2008, 05:51
"generally speaking, why would the Germans be more likely to buy it than the Brits?"
Before I address that, you have to remember that the support structure (dealers and management) is already there in Germany, and isn't in the UK - this is a big cost which arguably should be deferred to a point where it presents less of a proportional strain on available resources.
But in answer to your question, an important reason Lancia has suffered for a long time in the German market is because its range is so small-car centric - a by-product of its reliance on Italy where small cars are king. Lancia's current market share there is tiny, but there are a number of reasons to think it's set to improve rapidly. Firstly, more than any other in Europe, the German market is weighted by volume towards mid-sized cars, which is why the Delta is so important - it's tough to make a living when effectively your entire range consists of one supermini and one mini-MPV. It has the crucial job of arresting and reversing this trend - because for basically the first time since the start of the decade, Lancia has a competitive product to argue its case in the C- and D-segment, which dominates in the German market (this isn't a judgment on the Lybra's capabilities, but its sales fell off a cliff post-2000).
Secondly, Lancia has invested quite a lot of money over the last 18 months in the German market, which is just starting to show dividends now - I don't have the exact figures to hand, but thanks to the Delta, Lancia's recent monthly increases there are impressive. All of what I've said for Germany applies to France as well, another market where Lancia's current share is minuscule but where trends are looking up. Spain is a third market they are concentrating on, a turnaround from only a few years ago when I recall being told that the number of Lancia dealerships in the entire country had dropped to the grand total of 12...
Thirdly, the fact that Lancia has had a continued presence there is important. Even if they're small, their brand recognition there is more widespread, and more positive, than it is in the UK. In fact this is another problem in the UK context - what is Lancia's unique selling point? Due to the fact that Lancia has been absent for so long, Alfa UK pitches its products with a luxury-sports orientation, which (it seems to me) is essentially Lancia's remit? The question is, as a British buyer, why should I take a risk on what amounts to a glorified Bravo (or, in the case of the impending new Ypsilon, a glorified Punto), when I have so many good, established alternatives? Plus, all of that reckons without the mammoth challenge of Fiat UK's 'reputation' for customer 'service'.
"...a re-launch in markets such the UK which is after all the 3rd or 4th largest market in W. Europe or Japan which can't be ignored"
Why not? If the object is to turn a profit, there's a rolled-gold case for doing exactly that. Fiat UK hasn't been profitable in decades...
Before I address that, you have to remember that the support structure (dealers and management) is already there in Germany, and isn't in the UK - this is a big cost which arguably should be deferred to a point where it presents less of a proportional strain on available resources.
But in answer to your question, an important reason Lancia has suffered for a long time in the German market is because its range is so small-car centric - a by-product of its reliance on Italy where small cars are king. Lancia's current market share there is tiny, but there are a number of reasons to think it's set to improve rapidly. Firstly, more than any other in Europe, the German market is weighted by volume towards mid-sized cars, which is why the Delta is so important - it's tough to make a living when effectively your entire range consists of one supermini and one mini-MPV. It has the crucial job of arresting and reversing this trend - because for basically the first time since the start of the decade, Lancia has a competitive product to argue its case in the C- and D-segment, which dominates in the German market (this isn't a judgment on the Lybra's capabilities, but its sales fell off a cliff post-2000).
Secondly, Lancia has invested quite a lot of money over the last 18 months in the German market, which is just starting to show dividends now - I don't have the exact figures to hand, but thanks to the Delta, Lancia's recent monthly increases there are impressive. All of what I've said for Germany applies to France as well, another market where Lancia's current share is minuscule but where trends are looking up. Spain is a third market they are concentrating on, a turnaround from only a few years ago when I recall being told that the number of Lancia dealerships in the entire country had dropped to the grand total of 12...
Thirdly, the fact that Lancia has had a continued presence there is important. Even if they're small, their brand recognition there is more widespread, and more positive, than it is in the UK. In fact this is another problem in the UK context - what is Lancia's unique selling point? Due to the fact that Lancia has been absent for so long, Alfa UK pitches its products with a luxury-sports orientation, which (it seems to me) is essentially Lancia's remit? The question is, as a British buyer, why should I take a risk on what amounts to a glorified Bravo (or, in the case of the impending new Ypsilon, a glorified Punto), when I have so many good, established alternatives? Plus, all of that reckons without the mammoth challenge of Fiat UK's 'reputation' for customer 'service'.
"...a re-launch in markets such the UK which is after all the 3rd or 4th largest market in W. Europe or Japan which can't be ignored"
Why not? If the object is to turn a profit, there's a rolled-gold case for doing exactly that. Fiat UK hasn't been profitable in decades...
.