You'll notice that Volkswagen AG is driving directly into the oncoming traffic of convention when it comes to business practices. While other automakers are trying to shrug off - or outright kill - struggling brands, VW is just picking them up whenever it pleases. According to AutoNews, VW is still trying to pull Alfa Romeo out of Sergio Marchionne's grasp.
To clarify, adding Alfa to the lineup would potentially bring Volkswagen's carmaker portfolio to nine brands, including VW, Audi, Seat, Skoda, Bentley, Lamborghini, Bugatti, and Porsche (as well as Karmann, Italdesign, VW LCV, a 20% chunk of Suzuki, the rights to NSU, and more).
In one VW executive's terms, Alfa Romeo is a "treasure...[with] sporty genes" that could potentially help Volkswagen's world domination (or "growth strategy"), provide a great image, and save money due to similar offerings' powertrains and layouts.
Fiat's response to the situation was short and sweet: "We have no intention at all of selling the brand to VW." For now, it appears that there won't be any sudden changes made regarding the plan laid out by CEO Sergio Marchionne unless he makes them himself.
That plan is to retain Alfa Romeo and turn it into an Italian Audi killer, helping reach Marchionne's goal of 500,000 units a year. Analysts seem to think this number is a bit ludicrous, going so far as to say, "Maybe Alfa could get to a half million unit sales a year, but only after the brand is sold to Volkswagen," (Arndt Ellinghorst, Credit Suisse), and, "I do not see how they will be able to steal so many buyers from their German competitors," (Massimo Vecchio, Mediobanca).
With Alfa rumored to be losing upwards of 200 million Euros a year annually, perhaps now is the time to cut one's losses. That is, if Italy wants to give in to Germany again.
By Phil Alex
Source: Automotive News (sub. req)
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