Sunday, August 17, 2008

Alfa Romeo Returns to The States

Uncork the Chianti, let's have a party......Alfa Romeo is coming back to America.

Long rumored, much delayed, Alfa Romeo's return to the U.S. is a story is that's filled the airwaves once, twice, several times over, it's true.

Except that this time there's every chance it's really going to happen. Alfa bosses are now looking to re-start sales in the U.S. either in 2010 or 2011 with a final decision likely to be made in Italy by the end of the year. There's also buzz about building cars in the States.

Alfa Romeo, now riding high on the acclaim of its stunning 8C Competizione super coupe and funky new junior Alfa, the Mito, has been away from the U.S. for far too long.


The charismatic Italian maker, owned by Fiat since 1986, quit exporting to the U.S. back in 1995 and has long thought of ways to return. During Fiat's alliance with General Motors, talk of an Alfa renaissance flared up again and as recently as two years ago, word came that Alfa was set to return in 2009 with a three-car range based around the Brera Coupe, 159 Sedan and Spider.

Now for the first time in the emotional, ever-evolving story of Alfa, those plans have since been revised. Yet Alfa bosses still remain committed to the U.S. and if Alfa is going to earn its keep and at least double sales to 300,000 units per year, then a return to the U.S. just has to happen.

These days, you sense there's new steel in the inner workings of the famed Italian brand. Alfa's day-to-day revival is now being chartered by the youthful and charismatic Luca de Meo who helped guide Fiat's auto division back to prosperity over the past three years.

The recent launch of the MiTo compact in Milan, Alfa's spiritual home, marked the start of the 'full rebirth of Alfa Romeo' ahead of the marque's coming centenary on June 24, 2010, he said.

"In three years, there will be more new Alfas than in the last 10 years," promised De Meo, with a flourish. Behind the scenes, the most serious overhaul of Alfa's production and new model plans in generations is now well under way.

In a nod to Alfa's illustrious past, he added, "we will soon be building real Alfa Romeos again." Given Alfa's patchy product record over past decades, that'll be music to the ears of many and not just dyed-in-the-wool Alfisti (Alfa fans).

Local Production Possible

This time, Alfa Romeo is not just looking at bringing its cars back to the States. Local production is also very much on the agenda. Alfa says it wants to start production in the NAFTA area, which includes the U.S., Canada and Mexico, probably by 2013.

So that gives it a five-year window to start operations. By that time, all of today's model range will also have been totally revamped or renewed.

Alfa has three options on the table for local production, a spokesman said. First, build a completely new greenfield site. Second, use some spare capacity within one of the under-utilized plants run by the Big Detroit Three. Or third, use the facilities of Case New Holland, the world's number one farming machinery company. CNH, which is owned by Fiat has its headquarters in Chicago.

Then there's the question of dealers. One suggestion to use Maserati dealers to sell Alfas in the U.S. simply won't work, according to Alfa's PR man.

Maserati's network of 85 dealers is far too small for the job at hand, he said. Even though Alfa will concentrate on just the main east and west coast markets, at least to start with, Maserati dealers won't be able to cope with the volumes Alfa has in mind, long-term.

As far as parts supply was concerned, Alfa could use the system now used by CNH which is operational in all the U.S. states.

U.S. Product Portfolio Unclear

The 2009 Alfa Romeo 8C will usher in Alfa Romeo's return to the States. What follows is yet to be determined.

By the time Alfa returns to the US, there will be replacements for both today's 147 sports hatch and 159 sedan/wagon on the roads. Both cars will also be significantly lighter and greener than today's models.

Alfa is also talking about a new rear-drive Brera coupe as well as a crossover SUV (not Alfa's former Kamal Geneva Show concept, but something like it) although how and where the platforms will derive for these cars seems unclear at present.

Speculation links Alfa now with Tata-owned Jaguar for a suitable RWD platform. This could also support a replacement for Alfa's glamorous E-segment premier sedan, the 166, which may be badged 169 if approved.

Today's fun and feisty 1.4-1.6-liter Alfa MiTo would seem the perfect relaunch model for an American market that's downsizing and increasingly focusing on fuel economy.

Aimed directly at the hit Mini Cooper, the Mito has already garnered strong reviews and a 1.8-liter high performance 230 bhp Mito GTA, targeting the Cooper S, is also due in 2009. Yes, it could all work, but again we await official word from Milan.

The news that BMW and Fiat are now to co-operate on 'under the skin' architecture and parts throws up yet another variation on the Alfa theme, with speculation that the next Mini and Grande Punto (which sired the Alfa Mito) could share essentially the same platform. That would certainly clear a path back to the U.S. for Alfa.

Another possibility is that BMW could provide the Italians with a good rear-drive platform for next generation versions of the 159 and Brera although discussions on the whole collaboration are still at a very early stage, a spokesperson said.

Sources also suggest that Fiat and BMW are also working together on a new family of gasoline and diesel engines.

When it comes to Alfa Romeo, there's long been an element of smoke and mirrors. The message this time however is that the Milanese sporting icon, which has long had the potential to be an Italian BMW, is finally getting its act together.

And yes, after too long away, finally on its way back to the States.

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