Chrysler to reintroduce Alfa Romeo to the U.S.

[Buegie]

Don't know if this a re-post, I don't follow this section too much but...

Chrysler is planning to phase out alot of the current models (mostly Dodges) and introduce many models from Fiat and Alfa Romeo

http://online.wsj.com/article/SB1256...=djemalertNEWS

Originally Posted by WSJ

Four months after exiting a U.S.-funded bankruptcy reorganization, Chrysler Group LLC is about to unveil a product roadmap that relies heavily on vehicles from Italian partner Fiat SpA while abandoning many of the U.S. car maker's own models.

The plan, due to be revealed Nov. 4, involves the return of Fiat's premium, sporty Alfa Romeo brand to the U.S. starting in 2012, according to people briefed on the plans. Chrysler also will introduce to Americans the 500, Fiat's tiny car that is popular in Europe.

The company meantime is preparing to phase out many of the company's current models, particularly Dodge cars.

Fiat and Chrysler are working to create several new vehicles with Fiat technology for the U.S. market, including a midsize Chrysler-brand sedan slated to be released in 2012, according to these people.

The sweeping changes represent a big gamble for Chief Executive Sergio Marchionne, who has staked his reputation on the turnaround. Mr. Marchionne, who revamped Fiat as its CEO, appears to be creating a lineup that stays true to Chrysler's strengths in blue-collar muscle cars and pickup trucks while adding European-styled vehicles to attract a new, more white-collar customer.

But in the short term, Mr. Marchionne's challenge is to keep the company afloat until 2012 when the bulk of the new offerings will come to the U.S. Currently, Chrysler is faced with shrinking market share and few new models coming to market. While it doesn't disclose its finances, Fiat has said repeatedly it won't inject any money into the Chrysler despite receiving a 20% ownership stake in the company's reorganization. Instead, it is contributing technology and management expertise.

"The biggest issue this company has is getting through the next few years," said Rebecca Lindland, an automotive analyst at IHS Global Insight. "They are going to have a hard time maintaining market share let alone increasing it."

Chrysler spokesman Gualberto Ranieri declined to comment on the product plan. Next Wednesday "is the day Chrysler group is going to present its five-year-long business plan," Mr. Ranieri said. Mr. Marchionne and senior executives will give a six-hour presentation to the financial community and media.

For most of the next two years, Chrysler will have to rely on much of its current product line until the new Fiat-derived vehicles arrive. The company is banking on two revamped vehicles due out next year, the Jeep Grand Cherokee and Chrysler 300, as well as juicing its marketing spending on its Jeep brand.

But analysts worry that Chrysler's market-share erosion will continue as consumers appear to favor smaller passenger cars -- not the trucks and sport-utility vehicles that make up the bulk of Chrysler's lineup. Chrysler's share of the U.S. market fell to 8.35% in September from 11.1% a year ago.

The decision to increase the number of brands at Chrysler runs counter to the current industry trend of brand consolidation. General Motors Co. cut back to four brands from eight under its own bankruptcy to reduce development and marketing costs associated with having so many names. Ford Motor Co. jettisoned its Jaguar and Land Rover and plans to sell Volvo.

Yet both Ford and GM have many more new products coming to market in the near future than Chrysler does, which could further hurt that company's sales, analysts say.

"What everyone is counting on is enough of an uptick in sales that will heal everybody fairly quickly," said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich. After cutting costs sharply in bankruptcy this summer, Chrysler "may not have a lot of smash hits but I think there is a core market there that can be profitable for them."

Chrysler received $9 billion from the U.S. government as part of its bankruptcy. The company's cash position has improved since that time, according to a person familiar with the company, as production of vehicles restarted in full.

Under the new product plan, Chrysler plans to drop several Dodge products including the Caliber compact, the Nitro SUV and the Avenger sedan, but will keep the Dodge Challenger, a muscle car, and the full-size Charger sedan.

"I like that plan a lot. Dodge can be the performance brand. They don't have to be something to everyone, but they have to start being profitable," said Ms. Lindland of IHS Global Insight.

Mr. Marchionne aims to introduce the Fiat 500 subcompact to the U.S. in 2011 and will build the model in Mexico, said a person familiar with Chrysler's thinking. The 500 is viewed by some as Fiat's answer to the Mini Cooper made by BMW AG.

The Alfa Romeo products will be launched in 2012 with the MiTo subcompact hatchback, followed by a midsize sedan in early 2013 and the Alfa Milano, according to this person. These vehicles will be made in North America.

As the Fiat models arrive, many current Chrysler models will die. The Jeep Commander is slated to end next year. And by 2012, the PT Cruiser, Chrysler Sebring midsize sedan and the Jeep Compass and Jeep Patriot SUVs all will exit the market. The auto maker also plans to phase out the Dodge Caravan minivan in the next five years, leaving the Chrysler Town and Country as the company's only vehicle in that segment.

Based on a Fiat "platform," or underpinnings, Chrysler plans to introduce a new midsize sedan in 2012 as well as a compact Jeep a year or two later. A Chrysler compact sedan also will be developed for release in 2012 based on Fiat technology.

Reintroducing Alfa Romeos to the U.S. market will come with challenges, including defining the brand to a public that has very low understanding of it or even holds the brand in low regard. Alfa Romeo pulled out of the U.S. market in the mid-1990s, and has only sold a super-luxury sports car there recently.

"Bringing in the Alfa name I'm not sure how that is going to help Chrysler," said Adam Lee, president of Lee Auto Malls in Maine. "I'm just not convinced that people in this country have a warm spot in their heart or feel intellectually that it is a good product."

[SantaPimp27]

sweet

[Feyd]

The 500 Abarth is pretty badass... Hope we get that one.

[FStop7]

Yeah, the Fiat 500 would be a sick, sick daily driver in crowded socal.

[Garduna]

Originally Posted by Feyd

The 500 Abarth is pretty badass... Hope we get that one.

THat would definately give the Cooper S/JCW a run for it's money

[BillLee]

sweet

[Buegie]

was anyone else aware they still made PT Cruisers? I would have thought they stopped at least three years ago

[footie]

Originally Posted by Garduna

THat would definately give the Cooper S/JCW a run for it's money

It's like a mental little Jack Russell but it's not a Cooper S. Great to see Alfa returning to the US, it's actually a decent product now that the old head of M Division is in charge.

P.S.
Well I think he's still in charge.

[Bols]

500 abarth is sweet. But i just read an article today that the 500 doesn't pass secondhand requirement because the rear suspension is too weak for the car. They don't test these in all countries though. And no idea if the abarth has a different one

[immiketoo]

I want one of those!

[footie]

Originally Posted by Bols

500 abarth is sweet. But i just read an article today that the 500 doesn't pass secondhand requirement because the rear suspension is too weak for the car. They don't test these in all countries though. And no idea if the abarth has a different one

That would be surprising if true, basically the 500 is a Panda with different clothes.

[.:bHd:.]

Win!!! I hope it was sooner though I would get me an alfa 159.

[bobbyd1961]

alfa romeo? i had a 1974 gtv my father bought it new in 74 and i got it in 78. the worst car ever. it looked great and when it ran was fun however it broke down more times than i can remember . and the paint job went to hell. i swore i would never buy one ever. oh and my sister had a 78 spider new . she needed a jump start every morning. they actually put in some sort of switch to help start it.
thats why they were chased out of this country . total clunker. they lost me 30 years ago.

[UltimateBMW]

Originally Posted by bobbyd1961

it looked great and when it ran was fun however it broke down more times than i can remember.

Thats pretty much what Alfa's do from what I've heard.

Yet all the Top Gear guys still love em.