Alfa Romeo was the close focus of attention during the Fiat Auto Investor Presentation at Lingotto in Turin today with bold plans outlined for the US re-launch in 2009 which will follow a turnaround plan that is being rolled out across Europe.

With the brand's sales expected to reach 160,000 units in 2006 this will be a pleasing 17 percent up on 2005's total of 137,000 units. Out of this mix this year comes a 27 percent rise in the more profitable retail sales, and the opening of prestigious new metropolitan dealerships in London and Brussels. On top of this comes news of a deal with Inchcape that will see four new showrooms opened in the Paris area during 2007-08. In fact 46 new dealerships are currently on their way across Europe. Alfa Romeo are targeting sales of around 190,000 units by the end of 2008 with the thrust of the new models set to arrive the next year raising sales to close to 265,000 units by the end of 2009 and 325,000 in 2010, comfortably above Fiat CEO Sergio Marchionne's stated target of 300,000 units.

Alfa Romeo's UK turnaround plan is to be rolled out across Europe

The presentation today focused in a big part on the UK market where a top-to-bottom overhaul of the network is being implemented. Referencing the 80,000 units per annum that Audi and Mercedes-Benz, and the 110,000 units by BMW, achieved in the UK. With "emotionally strong branding", plus "visual and design appeal," Alfa Romeo firmly believe they are "the only alternative to the German brands." Their UK target is set for 35,000 units per annum by 2010, and to get into the JD Power customer satisfaction survey top 5. The UK turnaround plan has initially involved 60 percent of the existing dealer network being jettisoned, removing the underperforming deadwood. The new dealer network is being rapidly put in place and this is expected to be completed by 2008 with new standards set for sales and after-sales.
 

There will be a dedicated Alfa Romeo call centre and all the dealerships will be JD Power certified. A new PDI process will be put in place prior to cars being delivered to the dealer with a maximum 8 week ordering time for customers being put in place. Customer care will be boosted by a new recovery plan for dissatisfied owners and a 48 hour closure time initiated for complaints.

Between 2007-10 the lessons of the UK turnaround plan will be rolled out into France, Germany, Switzerland and Spain. By 2010 the sales in the UK, France, Germany and Spain are targeted to rise from 29.0 percent in 2006, to 36.5 pct. Sales across the rest of the EU will fall from 18.1 pct to 11.2 of total brand production, while Japanese registrations will rise from 2.5 to 4.7 pct of the mix, and the USA will account for 6.1 pct. Other areas will see their impact reduced from 4.8 to 3.0 pct.

Arriving in the USA in 2009

According to today's investor presentation Alfa Romeo's US eagerly awaited re-launch is set for 2009. Market analysis is currently conducted in the brand's main target area, Los Angeles; surveys being carried out in association with JD Power. Currently the Alfa 159 saloon and Brera sports car are taking part in customer and prospective dealer surgeries. Network assessments are at present being made in cooperation with Maserati, say Alfa Romeo, with the launch set to be centred around the forthcoming Alfa 169, Alfa 159, Brera and Spider during the third quarter of 2009.

This launch schedule will time neatly with the arrival of the Alfa 169 (which will replace the existing 166 model) which set to be built on the next-generation Maserati Quattroporte floorpan. US volumes by 2010, the first full year of sales, are targeted to reach 20,000 units.