Alfa Romeo

BRAND IMAGE, MARKETING AND SALES 

Alfa Romeo had seen motorsport success early on in the brands history. The cars have had a successful presence in Grand Prix, Formula one, Touring car racing and Rallying. As a result the band has become synonymous with motorsport. It has exploited it’s on track reputation to give the road cars an image of sports and performance prowess. This has been further cemented by the cars benefiting from race derived technology advancements being incorporated into the road cars, such as Double Overhead Cam engines and Twin-spark technology.

The cars were seen as stylish and prestigious four many decades up until the 1970’s. After which the brand lost its way due to being mired in financial troubles caused by falling sales and the economic climate. An early attempt at platform sharing with Nissan was not well receive. Alfa Romeo developed a reputation for poor build quality and durability in the 70’s and 80’s. This reputation would have hurt the brand effecting residual depreciation values for decades. Even today the cars do not hold their value as well as the established premium German brands.

In 1986 Fiat bought Alfa Romeo and developed new models for the 1090’s with sleek angular styling. But the brand was not a prestige brand, though still traded on its association with past sporting glory. In 1995 the brand withdrew from the American market, where the brand had previously been seen as exotic and cool, particularly with regards to the Spider roadster from the 1960’s and the film ‘The  Graduate’.

In Europe the brand started to head upmarket with new models and saw sales success with models like the Alfa Romeo 156 and 166 saloons of the late 1990’s. These challenged the dominance of the usual premium brands. But over the last decade (2000-10) Alfa Romeo has been losing market share.

This is reflected in their production figures. The following is a list of Alfa Romeo production figures from between 1998-2010, which show a general trend of reduction over the previous decade.

Alfa Romeo now sits in the near premium car sector with its Mito and Giulietta models. But is aiming at the prestige sector in the future with its eventual Giulia mid-sized saloon and forth coming compact-SUV.

Under Fiat-Chrysler CEO Sergio Marchionne plans, the Key to Alfa Romeo’s sales growth is the return to the American market. This will also be enhanced, through platform sharing between Fiat and the Chrysler groups. In the case of Alfa Romeo, an association with the Jeep brand will yield a compact SUV).

The following gives a link to: The International Organization of Motor Vehicle Manufacturers (OICA), gives production figures By selecting production statistics and selecting the Fiat group from the manufacturers listings, you can obtain production statistics for the Fiat group and which of its brands are active in the various regions of the world.

The following like to: Bloomberg newweek , gives an article on Alfa Romeo intended return to the US market and the brands strategic plan.

Next defender has a tough act to follow

The Los Angeles Auto Show saw two new Land Rover concept cars on display. Named the DC100 and DC100 Sport, they  indicate the possible future design direction for the replacement of the aging current Defender model. Any future models would be packed with innovative technology and driver aids. But would a gadget laden Landy live up to standard of the long running current model.

The original Land Rover (series I) made its debut in 1948, and was originally envisaged as a rural/agricultural vehicle. But it has gone on to secure its self in history as one of the most capable off-road vehicles of all time. It has undergone relatively few alterations in appearance over more than 60 years, despite there being a series II and series III, and since 1983 known as the Defender. Whatever the conditions, wherever in the world, and whatever the mission, you will find the Defender.

Current Defender model has a long lineage of capable off-roader Land Rovers

It may be found taking medical supplies to remote villages in Botswana, or crossing rivers in Bolivia, or crossing an Arabian desert. It has carved a reputation as a highly capable, dependable, highly versatile and tough vehicle, with a can do spirit. It has found favour with many nations militaries, whether as a modified armoured snatch or a rugged terrain ambulance. The current defender has been available in a number of body types, 3 and 5-door, and there has also been a 6-wheeled version.

The Land Rover has become regarded as the grand-daddy of all other off-roaders, spawning two other Land Rover models and three Range Rover models. It is the core embodiment and essence of the brand, and a tough act to follow. More than three-quarters of all Defenders made are still doing regular duty. But production of the current Defender will finally end in 2014, and the baton must be handed to a new model (progeny).

DC100 and DC100 Sport concepts hint at design direction for next Defender

With this aim, Land Rover has been displaying two new LR concepts at this week’s 2011 Los Angeles Auto Show. The Land Rover’s DC100 and DC100 Sport concepts investigate the potential design direction for the replacement for the iconic Defender. The company took these concepts to North America to gauge reaction and explore the possibility of bringing the Defender back to the US market.

John Edwards, LR’s Global Brand Director said: “The Defender has always been at the heart of the Land Rover Brand.  Our ambition is to create an all new Defender for a global market that remains absolutely faithfully to its original DNA: tough, versatile, durable and capable. At the same time, it will be developed for the 21^st century and adaptable for the needs of future generations”.

The two designs look unmistakably Land Rover. But do they look too over designed and like supersized Tonka toys; whereas the current Defender has a simpler, unfussy and utilitarian appearance. Perhaps LR need to tone down the styling a bit come a production model.

The DC100 supposedly reinvents the essential Defender design cues for the 21^st century. It has trademark short overhangs to cope with extreme approach/ departure gradient terrain angles. The panels are vertical, with an upright windscreen and strong shoulder line aiding visibility and ease of positioning. The car also has the signature Defender ‘face’ with round lamps and prominent grille, incorporating a winch.

The DC100 Sport takes all the above key design cues and adds what LR call the ‘spirit of freedom and leisure’ first embodied by the early canvas-roofed Land Rovers with fold-down windscreens to create a concept bursting with what they are calling ‘California cool’ in America.

The Land Rover concept’s may perhaps look a little too style conscious, but unlike the current Defender (which is renowned for its simple dated mechanics and agricultural on road manners), they will possess on road civility and incorporate a wealth of innovative off-road technological aids that reduce the workload on the driver.

The use of LR’s acclaimed Terrain Response system will optimize the car for any conditions without driver pre-selection. In addition, a new Terrain-i system creates an intelligent map of the topography in front of the car and displays it as a 3D visualization. This system automatically identifies potential hazards and suggests alternative routes. In urban environments it will be able to identify pedestrians and hazards with great accuracy.

A new Wade Aid system utilizes sonar sensors mounted in the bumpers and wing mirrors to measure water depth. As with Terrain Response, Wade Aid will optimize the car for water crossings by closing body vents, raising the ride height, selecting a low gear and advising on the safest speed.

For economy and reduced environmental impact, future Defender replacements will employ an intelligent Stop/Start system mated to the latest eight-speed automatic gearbox. It will also use a unique Driveline Disconnect system, which sends power only to the front-axle, unless conditions demand all-wheel drive. Unlike conventional systems, this physically, rather than electronically, decouples the rear-axle to reduce friction losses (for better economy), but can reengage drive almost instantaneously when needed.

Although any new modern Land Rover for the 21^st century would see a raft of new technological and innovative ideas. It’s important to note that the current Land Rover’s key to its success has been its low-tech simple but dependable nature. How dependable would the high-tech gadgets be in the long term as the years of faithful service role by in the deserts, mountains, rivers and the forests.

Alfa Romeo

ALFA ROMEO – NEWS – Returning to the American market

Alfa Romeo has seen its sales slowly decline over the last decade. To reverse this trend they need to expand their market globally into new territories. But one very important market they wish to return to is the North American market. A territory they withdrew from in the mid 1990’s.

But the Fiat group has seriously wanted to re-enter Alfa Romeo back into America since early 2000. There have been numerous delays due to a variety of reasons that have seen the time table for Alfa Romeo’s promised re-launch delayed.

The start of the strategy to take Alfa Romeo back to the US started in March 2000, when Fiat first partnered with General Motors (GM), (taking a share in each other’s companies). It was expected that Alfa Romeo would return to America by 2003, with a new Spider model. It was intended that Alfa’s would be sold through Cadillac and Saab dealers. This idea was killed off in 2004 by the Italians, and Fiat and GM separated in 2005, with GM selling its 10% stake in Fiat.

The promises, cancellations and delays have carried on since ever since, with the economic (credit crunch) crisis that began in 2008 becoming a major factor for delays. The Alfa Romeo 8C was the last model to spearhead the reintroduction of the Alfa brand back into the US. But as only a small volume of around 100 were sold through Maserati dealers, this only represented a token effort.

Fiat struck up a partnership with Chrysler, and took full control of the US car maker  in 2009 with the purchase of a 58.5% stake. The two companies have being moving towards a full merger of operations, aiming to share technologies and platforms.

In September of 2011, Fiat-Chrysler CEO Sergio Marchionne appointing a single management team for both companies, consisting of four regional chiefs  for- North America, South America, Europe and Asia – that will be in charge of Fiat and Chrysler, so stepping up the closer integration of the two manufacturers.

Under this reorganisation, Marchionne will remain Chief Operating Officer for North Gianni Coda, Fiat’s head of purchasing, now runs operations in Europe, while Cledorvino Belini – formerly the head of Fiat Brazil – will take charge of South America. Michael Manley, head of Jeep, will oversee Asia.

This newly formed Group Executive Council (GEC) is the highest decision-making executive body within the company, outside of its Board of Directors. In addition to the four regional Chief Operating Officers, each individual car brand will have its own head. E.g. Olivier Francois (Fiat), Lorenzo Sistino (commercial vehicles), Harald Wester ( Alfa Romeo, Abarth and Maserati), Saad Chehab (Lancia and Chrysler), Michael Manley (Jeep) and Reid Bigland (Dodge).

Marchionne had said that the Alfa Romeo brand would re-launch in late 2012, starting with small volumes of limited-edition Alfa Romeo 4C coupe as a spearhead models. The brand would then expand with the introduction of a small crossover vehicle and the mid-sized Giulia saloon and estate by the end of 2013. But now the 4C coupe would not be ready until mid-2013 at the earliest.

The Giulia has also been delayed until 2014 due to delays reported to being Marchionne rejecting the Giulia’s design three times over the past year and a half. The return to the US market wasn’t pushed back from 2012 to sometime in 2013 due to issues related to styling, but also due to the European debt crisis which further threaten to cause delays.

Fiat had planned to use Jeep as a basis for a large Alfa SUV (based on the Grand Cherokee), originally to be produced in Turin, Italy; a plan in which Fiat would have invested $1.44 billion in the Turin facility. It would have produced Jeep and Alfa Romeo SUVs, beginning in late 2012. But because the Euro € had increased in strength against the US Dollar $, it’s no longer economically viable to export these vehicles to America.

Fiat then considered producing these vehicles to America, at Chrysler’s Toledo plant, which would keep Jeep assembly domestic and give Alfa Romeo a leg up when it comes time for that brand to re-launch in the US. But the large SUV project has now been scrapped altogether.

The plan now is to scale back Alfa Romeo’s global expansion plans. Sergio Marchionne cited a dire outlook of the European debt crisis as a reason for the automaker to rethink some of its product launches. It will launch the 4C coupe in 2013, followed by a face lifted Mito and a compact SUV later in that year. Fiat plans to merge its platforms and technology with future Chrysler models. But that can’t happen quickly if launches are being delayed.

Fiat is hoping to produce a new flagship rear wheel drive V6 luxury saloon in 2014. It’s hoped that it will share a platform with, and be built alongside with the next generation of Chrysler 300C in America.

The link to Car Pages – Alfa Romeo News gives a chronological order of the news stories relating to the brand. Principally the main long-term story relates to the aim to build the brands sales by returning to America (discuss above). But other news concerning Alfa Romeo relates to stories relating to the 4C, Mito and Giulietta, such as the use of Multiair engines or TCT Transmission to boost power, while improving fuel economy and reducing emissions.

The latest news over the Christmas period again relates to the return to the American Market. Sergio Marchionne is said to be furious at the cost overruns on the fourth-coming Giulia saloon due to arrive in 2014 (the replacement for the 159). It has emerged that due to the need to comply with different crash safety legislation in the US and Europe, the Giulia will have to have different front end designs for the two markets. Sergio is not a happy bunny, because it was already reported that he had previously twice rejected the styling designs for the car.