The saturated service sector is consolidating. The big car makers are trying to lure customers away from independents. Dealerships benefit from increased sales of new cars because when cars and parts are under warranty consumers tend to take them authorised dealerships. Manufacturerers maintain loyalty by offering long warranties, good discounts, and buying agreements, along with stringent check-ups to ensure compliance. The highly brand-aware Italian car owners maintain loyalty in the aftermarket, particularly in Fiat service outlets.
Clients pay more because they are obsessed with original parts.
The market is changing and competition is heating up. Strong brand loyalty could erode if conscious becomes more price-conscious. New entrants, along with competition from non-genuine parts, are forcing parts' prices down. Despite rising costs of labour service outlets cannot pass them on to budget-conscious consumers. A Fiat outlet commented, 'We must buy Fiat.