Chrysler Group LLC$.$ and Fiat SpA announced that they would partner to bring the subcompact Fiat $500$ to be sold in the U$.$S$.$ sometime in $2011.$ The Fiat $500$ will be positioned as a direct competitor to BMW AG's Mini Cooper. The Fiat $500$ will be sold through a select group of about $165$ Chrysler dealers. The chosen dealers will also have the opportunity to sell the highperformance, luxury brand, Alfa Romeo, made by Fiat SpA, which will become available in $2012.$ But in order for the dealers to get the franchise to sell the Fiat $500$ and Alfa Romeo cars, they will need to build special facilities including two separate showrooms for the cars. Each dealer will have to spend as much as $$1$ million to provide these separate facilities while also providing for staff to sell and service the cars. Both Chrysler and Fiat believe that for the Fiat $500$ and Alfa Romeo brands to successfully penetrate the U$.$S$.$ market, the channels through which they are sold must appear to consumers to be dedicated only to Fiat and Alfa Romeo rather than be mixed in with Chrysler, Dodge, and Jeep brands.

Do you agree with Chrysler and Fiat's channel design strategy? Why or why not?