Fiat Chrysler Automobiles NV (FCA) is highly optimistic of the revival of the Italian luxury brand Alfa Romeo starting this year. Its optimism is buoyed by recent developments indicating that Alfa Romeo will be rolling out two vehicles soon including a luxury sedan this year and the company’s first ever SUV next year.
After absorbing losses of 141 million Euros (about $166.22 million) in the first nine months of 2014, Alfa Romeo nearly went down the gutter.
But instead of losing hope, Fiat Chrysler has decided to infuse $5.9 billion to overhaul Alfa Romeo and bring back the glory days of the luxury brand. It is also a bold attempt by the company to position Alfa Romeo to compete directly with BMW AG and Volkswagen AG’s Audi.
At the moment, Alfa Romeo is finalizing the development of its first SUV, while the company’s revival begins to take shape, reports Bloomberg Businessweek.
Alfa Romeo’s latest two vehicle models will have the rear-wheel-drive technology known as ‘Giorgio’ developed by former Ferrari managers.
Launching of the Giulia
The company will be unveiling its luxury sedan, which is being referred to as ‘Giulia,’ on June 24, 2015 during the 105th anniversary of the brand at the Alfa Romeo museum located at the outskirts of Milan, where the Italian carmaker was founded.
Analysts say that Alfa Romeo’s sporty SUV will also be manufactured alongside the Giulia at the company’s Cassino plant near Rome.
Employing the same technology on the two vehicles would give Fiat Chrysler lesser overhead cost since research and development for a new model costs about $1 billion compared to adapting existing technology which would only require less than $300 million of investments.
Full revival seen
Fiat Chief Executive Officer Sergio Marchionne says the two new Alfa Romeo vehicles will lay down the groundwork for the complete revival of the luxury brand.
Alfa Romeo is projected to launch a total of eight vehicles from this year until 2018 including two SUVs. The brand is also targeting to increase its sales to 400,000 units up to 2018, which is more than a five-fold increase from its total sales output last year which was less than 70,000.
Alfa Romeo’s market expansion will most likely be in China and North America. As a matter of fact, in preparation for its eventual return to the US market very soon, Alfa Romeo will be putting on display the open-top spider version of its $53,900 4C sports car at the upcoming auto show in Detroit.
American dealers have been noting a strong demand and thus a good market for the sports car.
An American analyst also believes that there is room for the US market for another luxury brand, especially if the vehicles to be introduced turn out to be excellent and superb.