[alfa] Re: Alfa in USA

[Stacy Faught <onethumb@xxxxxxxxxxxxx>]

This is probably the most well-put comment I have seen
about the issue!  

A few of you, but not most, realize the difficulties
and expense in launching a new model of car.  The
monetary cost is downright staggering, and the entire
company is generally on overdrive right down to the
wire on every deadline.  When you consider that most
of the model range is going to be launched in this way
within a period of a couple years of the estimate
return date, I can see why someone high up would start
to think that it may be a bit much to ask to also
release all of these models in a totally new market
with completely different saftey and environmental
requirements.  In all reality, it is probably too much
for Alfa to handle and would result in a botched
attempt, costing the parent company so much money that
it sinks the whole ship.  My guess is that the new
models will be designed to comply with USA
regulations, but the official release of these in our
country will wait until the models get off the ground
and all the minor problems have been fixed.  GM did
this with the Delta platform, releasing it first only
on the lower-volume Satrun Ion in '03, then taking it
to Europe as the '04 Opel Astra, and soon to replace
the very high volume Cavalier/Sunfire, with a mini-suv
and possibly a rear drive miata-like convertable in
the works also.  Notice that even though the Ion has
had a relatively trouble-free launch, there are still
no firm dates on anything else the platform will be
used for, except the Astra (have any of you across the
pond seen/driven one of these yet?  I'd be curious to
find out how well GM did on this one).  

In the long term, Fiat cannot afford to ignore the US
market forever--the world is getting to be too small 
of a place for this many carmakers.  The problem is
that Fiat will never be able to sell in this country
again.  The US marketplace continues to move away from
small, affordable cars, and on to large SUV's and
luxury cars.  Yes, Hyundai has done quite well
recently, but only because they are cannibalizing the
small car market from the big 3, based on price.  The
overall small and "family" car market is shrinking. 
This is the only thing that Fiat does, so they'll
never sell high volumes of cars here.  It really makes
more sense to go for the developing countries that may
buy their product in volume.  The 30,000 or so that
Alfa may sell here is nothing compared to the 200,000
Fiat can sell in Mexico, or the 500,000 they might be
able to sell in China.  Alfas in those countries would
just be about prestige, to give Fiat buyers a car to
move up to eventually.  If Fiat misses the boat in
those countries, they will lose the only territory
left in the world to expand their core business. 
Basically, Alfa can wait--the lux market will be there
and continue to grow, and the reputation from the
current European sales will be enough to get started
in the US whenever they want.  I'll still be in line
to buy one, even if it is 2010 before I can, and so
will most of you I think.  The bottom line is that a
struggling company has to focus on it's core business,
and for Fiat that is selling a large number of cheap
cars to people who may have never even owned a car
before.

Stacy Faught
'87 Spider Quad (not a cheap Fiat)
'78 Alfetta Sport Sedan (also not a Fiat...but small
and practical)


" Adam, I agree with something you told about Fiat
policy. Anyway, I'm in contact with some Alfa Romeo up
level employees, and we have, in a italian forum,
several discussions every day about the Alfa delay in
returning to US. They say they decided to look
european market before looking abroad. THis is true
but non completely true: following the Fiat policy to
go in the "development countries" (I apologize for my
poor english!) Alfa is coming in Mexico, anyway having
a bit of success, but still not in USA. I have my
personal idea: Alfa Romeo actually is the best managed
(and succesful) unit of the Fiat Auto group commercial
units (Fiat brand has no more appeal and they are
seeming they're trying to destroy Lancia) and want to
increase to larger numbers. Alfa actually sell 250.000
cars (as it happened in the past using the Nord and
Sud production lines) and want to arrive to
400/450.000. But they want to do it far in the future,
I think this is a no so good result if they want to
make Alfa Romeo a prestige brand as it was in the past
and, more, I think it's a difficult result to obtain.
But, working in this direction, they saw the sales
network is the worst (I say one of the worst) expects
of the brand. Even if they were assigned of the "best
sale network" title in this year (as it happened at
the Bologna "MOtor Show" some days ago) Alfa dealers
here and in europe are something sadness. This is, I
suppose, one of the result of Cantarella's era in Fiat
Auto, because you saw many exclusive Alfa dealers
closing, selling other makes, or selling all the
commercial Fiat brands. This "union" is something
opposite to the "exclusive brand" idea they now want
for Alfa....
The problem of the US is to have a strong and hard
sale network in US. I think GM put is actually more a
"mirror" for the various banks more than a real trust.
Alfa, then, is out of the put option. Surely Bandiera,
Alfa president, spoke very clear they won't to use the
GM groups outlet to sell Alfa Romeo, preferring
Ferrari/Maserati outlets and other general prestige
cars dealers. Actually numbers are still too low. But,
more, I  think the production line is one of the
causes. New Spider, Brera based, will be ready not
before 2006/2007, so they are waiting the new range to
sell products from the new 158 model up, arriving to
the 8C. Last sunday the manager staff of Alfa Romeo
was together to decide which models were to be
developed and built until 2008.
To arrive in US now or the next year, should be to
arrive with old products, and they think US will be a
quite large numbers market, surely harded than
european or italian or other markets.
They can't arrive with the "end of carreer" 156, or
with a 166, or with a GTV / Spider still Fiat Tipo
based, launched in 1996 and ready from 1988!. The next
production line will see the new 158, of course still
156 based, but also 4x4 and with a new styling, the
new large sportwagon, the Kamal, the 8C and the Brera
(the new GTV) also open (Spider). I really suppose
they fear not to be ready to satisfy the expectations,
overall if they want large numbers.

Leonardo Olivari
Italia

=====
Leonardo Olivari
Collezionista Alfa Romeo"
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