Fiat-owned Alfa Romeo is believed to have appointed Armando Testa to its global advertising account to launch the new 159 model following a five-way pitch, reports London-based Brand Republic.

Fiat approached Leo Burnett, Armando Testa and Saffirio Tortelli Vigoriti in its search for a creative route for the new launch, which hopes to compete for the attention of drivers of BMW's 3-Series. The incumbent, WPP's Red Cell, was also believed to have presented ideas.

The troubled Italian manufacturer has seen worldwide annual car sales of the Alfa Romeo brand fall to 170,000, compared with 250,000 in the mid-80s, according to the Society of Motor Manufacturers and Traders.

The group is still looking for an agency to launch the third-generation Punto, which is currently held by Leo Burnett, to work for a set fee of £500,000 on a global campaign. In March, Alfa Romeo launched the revised 147 range with plans to shift its marketing focus from advertising to direct initiatives. In May, Fiat appointed the Red Cell network to create a direct campaign urging more Italians to buy Italian-made cars.
 

Last year, Alfa spent its £4.3m budget on television. Car sales across Europe have fallen for the fifth month running in May and UK sales were down 52% year on year. In 2004, Fiat Auto posted an operating loss of £840m, the only company in the Fiat group to make a loss. Its losses in 2003 were £1.5bn.

by Julia Pearlman

This news feature is brought courtesy of Brand Republic. Brand Republic serves the fast-moving world of advertising, marketing, public relations and new media and it is the home of Campaign and Marketing magazines on the web.