Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automotive News Europe
December 01, 2009 12:00 AM

Money-losing Alfa could face product freeze

Luca Ciferri
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    The MiTo could be one of Alfa's last new cars.

    TURIN -- Fiat S.p.A. could freeze new investment in Alfa Romeo under a strategic review of the money-losing brand ordered by CEO Sergio Marchionne.

    A product freeze is one of two alternatives that Fiat is considering to end years of losses and declining sales at its sporty premium brand.

    The other option is to refresh Alfa's lineup using Chrysler platforms to replace the aging Alfa 159 sedan and wagon and the discontinued 166 flagship sedan.

    Alfa's new-car sales have declined steeply in the past decade as its range became older and new products were delayed.

    Now it seems that Marchionne is losing patience with the struggling brand.

    Marchionne has ordered a review of Alfa to find out whether to allow the marque a final rebirth through Fiat's alliance with Chrysler or to leave the brand as it is with no new substantial investments after the introduction of the Giulietta lower-medium car in 2010.

    "We need to work a lot harder on Alfa to make an intelligent decision that effectively preserves the highest possible value to Fiat," Marchionne told Automotive News Europe in an interview at Fiat's headquarters here.

    Too many reinventions

    Marchionne said Alfa had undergone too many reinventions.

    "We need to stop doing it. You cannot be a newborn Christian every four years. It's the same religion, eventually you need to own a religion and carry it to conclusion," he said.

    The two options for Alfa are:

    • Replacing the 159 with a D-segment sedan and the 166 with an E-segment sedan built in North America on Chrysler platforms, but unique to Alfa and sold by Alfa worldwide.

    • Freezing investment in the brand after the 147 hatchback is replaced by the Giulietta. This means that the 166 will not be replaced, leaving the brand with the Giulietta and the MiTo, Alfa's first small car, as its only fresh models. The rest of the Alfa range -- the 159, the Brera coupe, the Spider and the GT coupe will continue to be sold.

    Last year, Alfa sold 103,000 new cars compared with 203,000 in 2000. The brand has lost between 200 million and 400 million euros a year in the past 10 years, sources said. Fiat does not release separate financial results for any of its brands.

    Marchionne said Fiat's alliance with Chrysler could allow a high level of commonality between Alfa and the Chrysler platforms for the replacement of the 159 and 166, which was discontinued in 2007.

    "Certainly the availability of D and E segment (platforms) in the United States which are capable of being Alfa Romeoized is there. We need to look at the economics of that opportunity," Marchionne said.

    No Alfa-Dodge merger

    Marchionne is expected to announce the future of Alfa early next year, when the Italian automaker presents its 2010 to 2014 business plan.

    "By then we will know a lot more about what those architectures in the U.S. are capable of doing for Alfa," Marchionne said.

    He said Alfa will not integrate with Chrysler's Dodge brand, which has been speculated in some press reports.

    "The heritage of the Alfa and Dodge brands is completely different, the DNA is completely different. We would lose a lot of the appeal of Alfa Romeo if we try to Americanize it through a merger with Dodge," Marchionne said.

    Marchionne said he is pleased with the Mito, which was introduced in July 2008, and the Giulietta, which is due in March 2010.

    These two new products "are going to do a lot in advancing the DNA and the quality of the (Alfa) brand," he said.

    Past failures

    Fiat tried to reinvent Alfa with the introduction of the 156 in 1997. The 156 was hailed as a great-looking car. It had a platform specific to Alfa and was a huge success. Sales peaked at almost 120,000 units in 2000, but the 156 did not lead to an Alfa turnaround because no truly successful products followed it.

    The 156-based 147 hatchback got off a good start after its launch in 2000 with over 100,000 units sold from 2001 to 2003.

    But the arrival of German premium offerings such as the new Audi A3 in 2003 and the BMW 1-series in 2004 hit sales, forcing Alfa to lower the 147 market positioning to rival the VW Golf, a move that failed to halt the 147's sales slide.

    In 2005, Fiat tried another reinvention for Alfa with the 159, Brera and Spider range.

    These cars were based on a new platform but were plagued by excessive weight and low quality that always kept sales well below initial expectations of 120,000 units a year.

    Sales of the 159, Brera and Spider range peaked at almost 80,000 units in 2007.

    RECOMMENDED FOR YOU
    Toyota Europe ESG director Monica Perez Lobo to speak at Automotive News Europe Congress
    Recommended for You
    Monica Perez Lobo Toyota 2022
    Toyota Europe ESG director Monica Perez Lobo to speak at Automotive News Europe Congress
    Philippe Houchois, managing director of Jefferies Group
    Jefferies analyst Philippe Houchois to speak at Automotive News Europe Congress
    ANE Rising Stars logo 2022.jpg
    Automotive News Europe honors the 2022 Rising Stars
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us