LANCIA is to abandon the British market after an increasingly

disastrous sales performance which has resulted in only 569 cars leaving

UK showrooms this year.

One of Europe's most charismatic marques, the Lancia will soon be

unavailable in right-hand-drive form -- the company has decided that

developing models for minority markets, including Britain, New Zealand

and Eire, is no longer cost effective.

However, many Lancia afficianados, including the 46 surviving British

dealers, argue that the brand was left to wither on the vine without

major marketing and promotional support.

From the peak sales year of 1978, when 11,800 cars were registered,

Lancia's UK volume has been in free-fall, overtaken by Fiat's other

prestige stablemate, Alfa Romeo, which became part of the Italian

automobile group in 1986.

Lancia's series of world championship rallying victories was never

exploited, and the British importer scored an own goal by accepting the

less-than-dynamic Dedra name for its mid-sized saloon contender.

Its hatchback counterpart, the new svelte Delta due in Britain next

summer, will not now materialise, arguably removing the last source of a

possible revival.

Last year 701 new Lancias found their way on to British roads,

one-tenth of the Vauxhall Astra's volume last month. In 1991 the UK

Lancia registration total was 1320.

Central to Lancia's British problem was the lingering stigma of rust

which damaged the product's credibility in late 1979 when an endemic

corrosion fault was highlighted on the Beta range.

To sweeten the pill for Lancia owners with vehicles registered up to

August 1990, coupons worth up to #1600 (depending on the model) will be

issued. These can be put towards a new Fiat or Alfa Romeo.

An official statement from the Slough-based importer claimed that Fiat

Group remained committed to supporting loyal Lancia owners and

maintaining their goodwill. But motor-trade cynics realise that

secondhand values, never at a premium, will take a further dive even if

a service, parts and warranty system continues to be operated.

There is obvious scope for bargains to be clinched courtesy of the

remaining stock of 150 right-hand-drive Lancias.

The company insisted last night that specialist examples of the breed,

including the #25,000 rally-developed Delta HF Integrale, will continue

to be available to order. The Integrale is sold only in left-hand-drive

form.

Paolo Cantarella, head of the Fiat Auto Group in Turin, made the

decision earlier this week, although his British managing director,

Edinburgh-born James Blades, will have been consulted before the axe was

sharpened and wielded.

Within Fiat, marketing mandarins insisted that Alfa Romeo will be

projected as the sporting arm of the organisation, with Lancia

highlighting status and opulence -- confusing imagery.

Throughout Europe Lancia sold 308,400 cars during 1990, falling to

270,000 in 1991 and 214,000 last year.

Hugh Stevenson, a dealer for 12 years in Glenochil, near Alloa,

expressed ''great disappointment'' about the marque's demise last night,

although he took on Fiat 12 months ago.

He said: ''We are still shocked if not surprised by the decision.

Anyone watching

Fiat's UK strategy in the last few years probably saw the writing on

the wall. I blame the press for hounding the company during the early

eighties and never giving it credit for sorting out the rust problem.''

Mr Stevenson also argued that increasing dual or triple franchising of

Fiat, Lancia and Alfa Romeo caused public confusion because ''they are

all different animals''.

The Lancia stalwart claimed: ''The annoying thing is that there is

nothing wrong with the cars now and they are better than most rivals. We

suffered from a lack of marketing effort. They might return one day, who

knows?''

There are no solo Lancia dealers in Scotland.