Alfa Romeo’s not going to resort to price cuts
To get its US operations up to speed, Italian marque is banking on just three models
Alfa Romeo’s global brand chief says he won’t cut prices to meet lofty US sales goals, because he insists Fiat Chrysler Automobiles NV isn’t setting such targets in the first place.
The absence of set objectives is a rarity for Reid Bigland, who’s also head of US sales for all of Fiat Chrysler.
His focus is on building out Alfa Romeo’s dealer network and re-establishing the brand in the US as a true luxury name, with the Stelvio sport utility vehicle about to join Giulia sedans in showrooms.
“Really no volume projections,” Bigland said. “We’re going to work the long-term game with Giulia as well as with Stelvio and we’ll see how it goes as to how many we’re going to sell.”
Fiat Chrysler CEO Sergio Marchionne’s deputies are accustomed to taking aim at ambitious forecasts the boss has made public over the years at regularly held releases of fiveyear plans. With Alfa Romeo, the company has to balance the opportunity for expanding volume with the need to keep consumers thinking its models are worthy of fatter sticker prices than the Dodges or Chryslers elsewhere on dealer lots.
“It’s a completely different game, with the two games really not to be confused,” Bigland said.
With the Stelvio reaching dealerships next month and joining the Giulia and the 4C coupe, Alfa Romeo will have just three models for US customers. Audi has that many SUV lines alone. Luxury leaders Mercedes-Benz, BMW and Lexus have even more.
Gaining ground against these established giants won’t come easy, said Joe Phillippi, an auto industry consultant. “Sergio’s got his own set of expectations which usually don’t come to pass and then the poor guy that was assigned to manage it gets the boot,” Phillippi said.
Alfa Romeo intends to challenge German and Japanese brands with Italian design, a deep racing heritage and powerful engines. The first Stelvio models will be powered by a 2.0-litre aluminium engine that delivers 280 horsepower and 306 pound-feet of torque. Coming later will be the faster Quadrifoglio version with a 505-horsepower, 2.9-litre engine.