Alfa Romeo Goes Back To The Drawing Board Due To China :Comments

[William Maley]

Last May, Fiat Chrysler Automobiles announced some ambitious plans for Alfa Romeo. By 2018, the brand would hopefully sell 400,000 vehicles annually thanks to 5 billion Euro investment that will lead to the introduction of eight new models. This past week, FCA is going back to the drawing board.

 

Speaking with analysts on the company's third-quarter results, CEO Sergio Marchionne said due to the weakness of imported luxury vehicles in the Chinese market, FCA is currently reassessing their plans. Marchionne said a good chunk of the 400,000 vehicle sales was assigned to China. But in light of what is happening in the country, those proposed sales will need to absorbed into other regions.

 

Now all of the vehicles that Alfa Romeo that Alfa Romeo has planned will still be developed, but the brand will need to 'rejig' its plans to focus on launching models that will suit Europe and North American rather than China. Plans for the revised rollout will happen in January.

 

Source: Automotive News (Subscription Required)

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[G. David Felt]

You can roast me all you want, I do not care, but this is the worlds UGLIEST car Ever. This continues to prove the idiot leading FCA needs to be fired and this brand put back where it should have stayed in the history books. Waste of Billions that should have stayed in the states to build new models for Jeep, Dodge, Ram and Chrysler.

[aurora97]

Between this and Cadillac, I feel like the auto industry is turning into an episode of the Brady Bunch, "MARSHA! MARSHA! MARSHA!"

CHINA! CHINA! CHINA!

[Suaviloquent]

Wow. I wish continued failure for the Fiat brand of FCA. Because it's the only one that isn't contributing anything. Someone ougt to raise the flag of wasted effort on escalation of commitment. I can see the worth in Alfa Romeo, and then Maserati. But man is it going to be ardous to build them up.

 

All this while FCA US is getting shafted, and being taken advantage of by the strong American Auto Industry Recovery. 

 

I have never seen so much product potential wasted by terrible mismanagement. 

[Drew Dowdell]

They need to fix the holes in their lower brands before they go about trying to restart Alfa. 

[smk4565]

A good way to boost Alfa Romeo sales would be to include a free Mercedes or BMW with the purchase of every new Alfa.

[Frisky Dingo]

No surprise here. This brand is just cursed.

[Suaviloquent]

Here's the thing. Sergio talks a lot about automaker consolidation and restructuring.

 

Other than the Ferrari sale, we have yet to see something of this nature at FCA itself.

[Drew Dowdell]

Here's the thing. Sergio talks a lot about automaker consolidation and restructuring.

 

Other than the Ferrari sale, we have yet to see something of this nature at FCA itself.

 

Because it would mean closing Serg's pet brands.  Serg is bleeding Chrysler to keep Fiat, Alfa, Maserati and for some reason Lancia (Italy Only) alive. 

[smk4565]

If FCA wanted real consolidation, they could probably keep Fiat as the small cheap car brand, pick one of Dodge and Chrysler for the middle, dump Alfa and put the effort into Maserati as the luxury brand.  Then you have a 3 step car line up.  Jeep and Ram stay for trucks and SUVs.   But they won't do that because they like having 8 boutique brands rather than 4 strong ones.

[Drew Dowdell]

I don't think they need to choose between Dodge and Chrysler.  

 

Fiat - niche small fun hatchbacks and crossovers at a cheap price.  Price of Scion + Cuteness of Mini

Dodge - FCA's answer to Ford and Chevy in cars and some crossovers

Chrysler - FCA's answer to Buick, the Avalon/ES, Acura, and Lincoln in cars and maybe a crossover or three, plus the Minivan.  300 would need to move up in status by a good chunk.

Maserati - The BMW/Benz/Cadillac competition - too sporty to go up against Lexus.  They would need to come down in their segments, probably take over the Guilia... but not go as far south as Mercedes and BMW have gone.

 

Ram and Jeep stay right where they are.

 

edit:  And yes, I think this could work globally even if they just rebranded the Dodge/Chrysler vehicles as Fiats or Lancia's (only one or the other) overseas, but Chrysler could probably be used with success.

[smk4565]

And people said GM needed Pontiac and Saturn, etc.  And GM is doing better with 4 brands than they did with 8.   There just seems like a lot of overlap still in FCA and you don't need to be all things to all people.  Jeep builds crossovers and SUVs, do you really need carbon copies of them in other brands if Jeep, Dodge and Chrysler are all in the same dealership?  Do we need a 300 and a Charger?  And is Maserati ever really going to compete?  

 

Sergio wants to consolidate, but has an army of low volume niche products, and probably about 1/3rd of their products are really profitable.

[G. David Felt]

I don't think they need to choose between Dodge and Chrysler.  

 

Fiat - niche small fun hatchbacks and crossovers at a cheap price.  Price of Scion + Cuteness of Mini

Dodge - FCA's answer to Ford and Chevy in cars and some crossovers

Chrysler - FCA's answer to Buick, the Avalon/ES, Acura, and Lincoln in cars and maybe a crossover or three, plus the Minivan.  300 would need to move up in status by a good chunk.

Maserati - The BMW/Benz/Cadillac competition - too sporty to go up against Lexus.  They would need to come down in their segments, probably take over the Guilia... but not go as far south as Mercedes and BMW have gone.

 

Ram and Jeep stay right where they are.

 

edit:  And yes, I think this could work globally even if they just rebranded the Dodge/Chrysler vehicles as Fiats or Lancia's (only one or the other) overseas, but Chrysler could probably be used with success.

 

And people said GM needed Pontiac and Saturn, etc.  And GM is doing better with 4 brands than they did with 8.   There just seems like a lot of overlap still in FCA and you don't need to be all things to all people.  Jeep builds crossovers and SUVs, do you really need carbon copies of them in other brands if Jeep, Dodge and Chrysler are all in the same dealership?  Do we need a 300 and a Charger?  And is Maserati ever really going to compete?  

 

Sergio wants to consolidate, but has an army of low volume niche products, and probably about 1/3rd of their products are really profitable.

 

Biggest problem with FCA is their Unionized BS agreements that makes them think they have to keep their mass production going as well as keep stupid Italian lines alive. They are going down the Bankrupt road and will hit it soon.

[El Kabong]

They need to fix the holes in their lower brands before they go about trying to restart Alfa.

I was really hoping the Giulia platform might get off the ground before something like this went down...

They need small cars that don't have Fiat badges stat.