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Alfa Romeo, Fiat and Iveco are all heading
stateside, with the former set to begin
manufacturing locally within three years, as
Fiat Group cranks up plans for a major
assult on the North American market,
according to Fiat CEO Sergio Marchionne. |
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Alfa Romeo,
Fiat and Iveco are all heading stateside, with the
former set to begin manufacturing locally within three
years, as Fiat Group cranks up plans for a major assult
on the North American market, according to Fiat CEO
Sergio Marchionne.
Marchionne
has been quoted today by Financial Times, and he
told the respected financial newspaper that Fiat Group
was talking to the three big carmakers in Detroit to
find a partner to help it manufacture Alfa Romeo models
in North America from 2011 or 2012. "I've always had the
view that we had to produce in America," he told FT,
adding: "Nobody making anything in Europe is going to
make profits in the US. You can't. So we need to
localise."
With Ford,
General Motors and Chrysler all suffering from excess
production capacity within many of their plants as their
volumes continue to suffer, Marchionne is expected to
secure a deal to use an existing facility to assemble
several Alfa Romeo models, including the forthcoming
X-Over. Marchionne didn't reveal in the interview who he
was talking to, but said: "You don't even need a full
hand to count them, so let's assume that we know them
all and we talk to them from time to time about a
variety of options."
In the
meantime he reaffirmed on-going plans to re-launch the
Alfa Romeo brand in North America next year, almost a
decade and a half since it withdrew from the market. In
the period between the re-launch next year and local
assembly beginning, Alfa Romeo will absorb the losses
generated by importing cars against the unfolding
backdrop of the weak US dollar. "I can suffer the loss
initially, as long as I know I'm going to be producing
enough," he told FT.
Iveco, the
Fiat Group's trucks-to-buses division, will gear up for
its own stateside arrival with the help of the Group's
construction and agricultural unit CNH Global. CNH
Global is the world's second largest agricultural
equipment manufacturer, and third largest for
construction equipment, and is headquartered in
Illinois. Iveco will use the Case-New Holland
distribution network across North America to build up to
its launch.
Fiat Group
has talked to potential partners previously and
considered making an acquisition in order to facilitate
Iveco's US arrival, with much rumour linking the Italian
firm to Navistar International, but Marchionne has ruled
this out for the time being, although in the interview,
he leaves the door open for a future acquisition or
merger.
Finally, the
Fiat 500 is to head across the Atlantic. Since its
launch last summer the 500 has become Europe's most
talked about car and swept up the most coveted accolade
of all, the Car of the Year award. To cope with
the huge demand, production at the Tychy, Poland factory
where it is built is being expanded to 190,000 units
this year, as the small car shatters all sales
predictions.
Now
Marchionne wants to follow the bountiful path trodden by
another highly successful recent small lifestyle car,
BMW's new Mini, which ably reinvented the Mini theme,
much in the way the the new 500 has built on the legend
of its predecessor. The Mini has also been a big hit
across the Atlantic, and in the interview the Fiat CEO
says that they "need to replicate the Mini phenomenon in
the US."
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