Shock! Fiat Delays Alfa's U.S. Market Entry, Recalibrates China

Robert Farago
by Robert Farago

With U.S. new car sales set to fall below the most pessimistic of pre-metldown prognostications (ours at 12m p.a.), is it any wonder that Fiat has decided not to brings Alfa Romeo brand stateside? Our resident historians will be glad to recount the absolute ass-kicking Alfa endured in The Land of the Free, but again, this is the worst of all possible times to try and get something started in the American market. Strike that. Just BEFORE the collapse would have been the worst time. This is an excellent time to NOT import mass market Italian cars stateside. And so they aren’t. “Alfa’s U.S. return was originally planned by {Fiat Group and Fiat Group Automobiles CEO Sergio] Marchionne for the final quarter of 2009, then later delayed to the 2010,” Automotive News [sub] reports “In pushing that back another year, Marchionne told analysts, because ‘it would be simply crazy investing for returning Alfa in such a depressed U.S. market.'” And so… “Alfa’s return to the United States will be delayed by a year to 2011.” [TTAC tip: don’t hold you breath.] China after the jump.

Sergio also readjusted his Chinese sales targets. “The new 2010 goal for Fiat sales in China is now 50,000.” That’s gonna be rough, as “In China, Fiat has so far missed all the targets Marchionne had previously set. The Italian automaker has not produced vehicles in China since December 2007, when it ended its joint venture with Nanjing Automobile. Fiat is currently importing ‘a few thousand’ vehicles produced in Italy and Turkey, Marchionne said. Each is sold at a loss, but the automaker needs to continue importing vehicles to bolster its Chinese dealer network. Because of this, Marchionne acknowledged that the 300,000 units sales target he had set for 2010 is unreachable.” Ya think?

Robert Farago
Robert Farago

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  • Johnster Johnster on Oct 26, 2008
    LDMAN1 : Mini is a premium brand and there are margins to play with. Fiat is not a premium brand. The Mini was not a premium brand when it was a model sold by Austin and Morris and when it left the U.S. after the 1967 model year. It was gone for 36 years and when reintroduced in 2003 lots of Mini buyers had no memory of the original and it was able to be repositioned. Fiat left the U.S. market after the 1983 model year and has only been gone for 25 years, but there are still many young buyers who have no memory of past Fiats. If the 500 proves to be reasonably reliable (comparable to the Mini) and if Fiat sets up a decent sales network, parts distribution, and customer service experience there's nothing to prevent Fiat from repositioning themselves in the U.S. market as the manufacturer of premium-branded smart, chic, stylish transportation.
  • Chuckgoolsbee Chuckgoolsbee on Oct 26, 2008

    Damn. I really wanted a Spyder JTDM. --chuck

  • Carson D I thought that this was going to be a comparison of BFGoodrich's different truck tires.
  • Tassos Jong-iL North Korea is saving pokemon cards and amibos to buy GM in 10 years, we hope.
  • Formula m Same as Ford, withholding billions in development because they want to rearrange the furniture.
  • EV-Guy I would care more about the Detroit downtown core. Who else would possibly be able to occupy this space? GM bought this complex - correct? If they can't fill it, how do they find tenants that can? Is the plan to just tear it down and sell to developers?
  • EBFlex Demand is so high for EVs they are having to lay people off. Layoffs are the ultimate sign of an rapidly expanding market.
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