Fiat UK boss Andrew Humberstone wants to radically
alter the way we buy cars.
He is well on course to turning the tide for Fiat
in Britain helped by a swell of new models but he wants to develop a new
business channel to get them onto the roads.
Unusually he does not believe it will be something
Fiat or its dealers will dictate but something which will organically develop
from its savvy shoppers.
"I would like to see a closer relationship with the
virtual and physical and I believe it will come from the customers themselves
who do so much over the internet," he said, adding, " I haven't been into a
bank for four years but I do all my banking over the phone or internet with a
personal manager or e-banking.
"I can do this 24/7 from where-ever I am and I
think this level of access is what car buyers will want in future. Using the
internet they will be able to pick and specify their car, insure and finance
it, have it booked in for a service and they could even have it delivered to
their door so they never actually go into a dealership.
"It will also create opportunities for the clever
dealers to interact with their customers by advising them when a service is due
or the car is likely to need replacing."
He added, "I think the retail model we know today
will have to change to accommodate that and it will be a very interesting
challenge for us all. I think I have a fairly clear idea of what I think will
happen in future but it really depends on how far we are prepared to go and if
the market is up for these challenges."
The recession is likely to slow this rate of
progress but Mr Humberstone believes that eventually there will be a change in buying
and a move towards this virtual and physical way of car ownership.
He also believes that dealers and manufacturers
will have to invest much more in technology to keep up with their customers,
but they could make savings in traditional business costs by moving towards a more
virtual presence and service to their customers.
There would not be the need for expensive High
Street showrooms and service centres which could be relocated to suburbs or
estates and in the case of big groups it is likely such a facility could be
shrared among a number of marques as the customer would rarely if ever visit.
Such out of town multi-marque facilities would be
able to concentrate on servicing and repairs and even offer 24hr service, taking
a vehicle in at night for routine work which would be completed by breakfast and
returned to the customer ready for another day.
Advances in vehicle electronics are now making it
possible for a car or van to send an alert to a garage to say something is
wrong or advise a service is due and this would then be picked up by the
dealership which would contract the customer.
It is not the end of the road for the dealer but a
new highway of opportunity is opening up.
"I think there will always be a role for dealer but
it will change. Service is the key because at the end of the day every vehicle
needs a service at some point, although the intervals are getting longer."
He added, "Cars have never been so advanced but the
way we buy them hasn't really changed for 100 years although the number of
dealers has been declining since the 1970s. Change is long overdue and if we
want to be ahead of the game in a sophisticated world maybe we should be
driving it."