Will Alfa Romeo Ever Get Its Act Together?

The 2014 Alfa Romeo 4C is expected to be offered here in the U.S. next year, as Fiat begins an effort to turn the Alfa brand into a global luxury contender. Photo credit: Alfa Romeo 

Italian automaker Fiat  (NASDAQOTH: FIATY  ) is trying hard to turn its collection of brands into a cohesive global automotive empire. That's a tougher challenge than you'd think for the automaker that controls brands ranging from Dodge to Ferrari: There's a lot of work to do, and it all needs to be done in a hurry.

Fiat CEO Sergio Marchionne has been known to talk big -- but he has sometimes been able to back up that talk. Look at what Fiat has done with Chrysler: Left for dead in bankruptcy court in 2009, Chrysler is thriving and profitable. thanks to a high-speed overhaul of its product line that was masterminded by Marchionne.

That overhaul had analysts snickering when it was first announced: How could Fiat possibly turn Chrysler's uncompetitive products into well-regarded sales successes on the cheap? But it has turned out to be wildly successful.

Not all of Marchionne's plans have worked out as well, but that kind of success is worth taking seriously.

Now, Marchionne says that he will soon reveal a plan for one of Fiat's crown jewels: the storied Alfa Romeo brand. Marchionne sees Alfa as a global luxury-car brand, on par with the likes of BMW  (NASDAQOTH: BAMXF  ) .

That's not wildly implausible. Alfa has long been seen as a brand with tremendous potential. But in recent times, its products have been small and mostly uninspiring -- and not available here in the United States. That should change soon: The 2014 Alfa Romeo 4C is expected here next year. But much more will be needed to realize Alfa's potential.

We've been hearing for years that Alfa would soon have a dramatic global renaissance. So far, it hasn't happened -- but Chrysler's revival has taught us that sometimes, Marchionne's hare-brained-sounding schemes can produce great results. In this video, Fool contributor John Rosevear looks at what Marchionne probably has in mind for Alfa -- and at the cold hard reality that could cause this plan to crash hard.

Just three simple stocks could help you retire rich
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 14, 2013, at 6:28 AM, singaporenick wrote:

    Marchionne has done a fantastic job with Fiat,both brand-wise and geographically,but Alfa is the brand he needs for all the pieces of the Fiat jigsaw to fall into place,to complement the success of Chrysler,Fiat,Maserati and Ferrari.

    It's got a great name in Europe (less known in the States I guess) and could rival BMW if it got its act together with the right products.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2764094, ~/Articles/ArticleHandler.aspx, 8/30/2014 6:36:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement