ROME-Automaker Fiat Chrysler Group has decided to open a branch in Finland with engineer Alessio Castelli, boasting over ten years of experience in the FIAT group, as manager for the new Scandinavian Business Centre, also in charge of the group's operations in Sweden and Denmark. Mr Castelli is the Chief Operating Officer of Fiat Group Automobiles in Sweden and Denmark, responsible for sales in the Nordic markets, and he agreed to talk to The Italian Insider about these latest developments and future prospects for Fiat.

- Engineer, when did Fiat start on the Finnish market and what are the prospects ?
Fiat had not yet had a direct presence in Finland, but rather relations with importers, distributors or dealers. From the historical point of view, the first traces date back to 1920 with exports of 201 Fiat 501 cars; Chrysler has not yet had a direct presence there. Whereas the Danish branch was founded in 1930, the Swedish one in 2010. Regarding the current sales situation in the market, in 2013 we achieved 1% in cars and 1, 7 % for commercial vehicles, a position still weak, but that, with a direct presence, we intend to change to achieve more consitent levels. In the Scandinavian countries the pace of development is more dilated, but with the right gear, the trend becomes faster. For vehicles offered in the Nordic countries and Russia, we prepare a configuration consisting of the so-called 'cold countries kit,' with devices suitable for these latitudes, for example vehicles with heated seats, paying particular attention to local needs.

- The current presence, through dealer / importer is then replaced by a direct presence: when will it be operational?

We will be fully operational by the beginning of 2015 with the establishment of a branch type Fiat Finland or other designation, connected to a local legal entity, with its headquarters presumably near the airport, as easy accessibility is absolutely necessary and practical.

- What are the reasons for the decision, despite the narrowness of the market?

The current distributor has decided to terminate the contract at the end of 2014; the decision derives mainly from the fact that the Finnish market is very similar to the Swedish one as regards the distribution of the segments of the cars on the two markets: the segments C and D, which include, for example, the Giulietta Alfa Romeo, are in Scandinavia 50% of the total market. In Sweden this figure is 47% , in Finland is 49% , while, on the contrary, there’s a weakness in the segments A and B, where, for example, with Fiat 500 (A) and Punto (B), in Finland they have only 3% of the market (with Fiat 500), and with the Punto, 13%. Regarding the C and D segments we will soon have some good cards to play on both Swedish and Finnish markets. Basically, although the two markets differ in language, taxation, currency, there is a strong similarity on the distribution profile of the car segments. Moreover, we are trying to do the synergies and we noticed that such a distribution as a Nordic cluster is fairly widespread even among our competitors.
 

- How does the Finnish market put itself in front of the rest of the Scandinavian market (Denmark, Sweden, Norway)?

In Norway we have an importer, and the country is now out of the scheme which includes Denmark, Sweden and Finland. In terms of vehicles sold annually, on average, Sweden gets approx. 280,000, Denmark160,000 and Finland ca. 125,000. As far as commercial vehicles are concerned, there are about 45,000 sold in a year in Sweden, 28,000 in Denmark and 15,000 in Finland.

- What is the type of Fiat vehicle most in demand in Finland?
The best sold models in our portfolio (looking at 2013) in Finland, in order of sales volumes, are Fiat Punto followed by Fiat 500 and Alfa Romeo Giulietta.

- The proximity of the Russian market has some influence on your decision?
No, there are no correlations in this sense, as it is a completely different market.

 - The target is to gain a greater share of the market ...

The direct presence is obviously aimed at enhancing sales results, with the ambition to expand them and structure a more constant presence. After nearly a century of indirect presence, there seems to be an important step to achieve in this kind of evolution. We intend to combine the best of the new products portfolio, soon to be announced by the CEO Marchionne, with the local market.