The new Alfa Romeo Giulia and its implications on FCA’s future

headerFinally after 11 years as Fiat’s CEO and 4 failed relaunch plans, Alfa Romeo has a real rebirth with a great product. The new Alfa Romeo Giulia is the result of a promise made by Sergio Marchionne that became one of its toughest challenges: to revive a myth. The idea is to give this brand a good position in the competitive premium car market thanks to high performance vehicles that feature Italian technologies, light components, the ultimate engines and the gorgeous Italian touch in its designs. All of these characteristics should be enough to convince the public (potential drivers and investors) that Alfa Romeo is right this time. But it won’t be easy and even if the new Giulia is another 4-wheels-masterpiece the management must work hard on its positioning and image.

If the new car impresses during its reveal at Arese museum, the FCA could look more attractive to potential partners that could see on this launch an opportunity to improve the company’s profits and its share in the premium segment. GM, Ford, Hyundai or any Chinese car maker would have a real chance to enter the competitive premium market using the Italian design and Ferrari engines. Who would reject this knowhow? all of those big car groups lack of strong premium products and the very few brands they have are strongly concentrated in North America (Cadillac and Lincoln).

In case the new Giulia doesn’t meet the big expectations FCA would be in a difficult situation. It is very far from the Germans in both, sales registrations and profits, and it urgently needs cash to finance its product plans (see what the new Alfa Romeo shouldn’t doo). If the press and general public’s impressions are mostly negative, Fiat has still time to make some changes as the production won’t start till November 2015, but at the end no major improvements can’t be done. Based on this scenario, FCA would have to change its strategy and try to look for a good sale deal to a wealthy car maker.

Follow me on Twitter for live tweets of the new Alfa Romeo Giulia

CarIndustryAnalysis

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2 responses to “The new Alfa Romeo Giulia and its implications on FCA’s future

  1. Are you for real? Sell? To who? What wealthy car maker? Saudi Arabia- err, germany is not as wealthy as you think.

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