It seems that VW may be looking to buy an Italian brand, if reports from Autonews is to be believed, despite there being word in the past that VW already had all the brands it can handle. Two VW executives have said that VW are “seriously interested” in buying Alfa Romeo.
Another unidentified manager at VW also revealed to Automobilwoche: “Alfa is a globally recognized brand with sporty genes and a great tradition. If such a treasure could be had, we must not hesitate… too long.” This comes despite Volkswagen CEO Martin Winterkorn stating: “Our appetite for buying in Italy is fully satisfied.”
As much as VW would like to buy the Italian brand, parent company Fiat aren’t interested in selling. A high-ranking Fiat exec revealed to the publication, “We have no intention at all of selling the brand to Volkswagen,” opting to stick to the turnaround plan Fiat (and Chrysler) has laid out for Alfa Romeo.
This would involve selling 500,000 Alfa Romeos a year, which is said to be an ambitious target if still under Fiat. ”Maybe Alfa could get to a half million unit sales a year, but only after the brand is sold to Volkswagen,” said one analyst from Credit Suisse automotive research department.
”Alfa plans to sell 85,000 units in the United States in 2014, therefore Fiat’s plan really means it wants to boost sales in Europe from 100,000 units to more than 400,000. I do not see how they will be able to steal so many buyers from their German competitors, “ said another analyst in Milan, laying out the facts.
Unfortunately no one really knows the Alfa’s financial predicament at the moment, as Fiat doesn’t separate financial results for its brands, but sources say that Alfa has lost between 200 million and 400 million Euros a year over the past 10 years. Thus if Fiat’s turnaround plan for Alfa doesn’t work, VW could be a viable option for the company.
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vw can bring an end to their reliability issues and thus reviving Alfa to it former glory
but what about the purity ? hope it stay true to its italian root
Hmmm…Italian flair combined with German tech marvel?! That would be great! If that happens, I don’t see why can’t Alfa under VW couldn’t sell half a million unit a year, heck…maybe they could sell a million unit. If VW could turn company like Skoda, Alfa wouldn’t be difficult since the company had major history in motorsport and great tradition in building cars. As most time I read about Alfa is they lack of fund, Fiat is to focus on their Ferrari…pity the Alfa. One of the best Italian mass production company.
at least they can make the car reliable
Alfa is making a huge comeback , the 159 and giuletta are signs of good things to come , and FIAT’s Multiair tech is on a roll…
Oh no!!!!
my worst nightmare
I’d set my Fiat Uno on fire if Fiat dare sell out Alfa Romeo.
VW cars are nice, relieble, technical marvel and as inert as the gas inside their xenon headlights.
have you seen the mito, the 8C, and the new one giuletta
just hoping the chrysler deal turns out fruitful
NOOooo.. Stay pure… Italiano…. I intend to get an Alfa after my Grande Punto… :P
OMG!! If VW really buy AR the Alfa spirit will gone! Although its true that reliability issue can be solved but Alfa sure will lose its essence!!
The idea of getting an Alfa is the fact that it has the “Italian” flair … which unfortunately comes with some “reliability” issue. But then… that’s what you are getting into when buying an Italian brand.
Take that away … and what you left with is a lifeless mechanical shell.
“Without hearts, we are just machines”
It will good for AR for these reasons :
1) Ensure survival of AR brand. No company can sustain Millions of Euro losses years after years. Fiat included. AR can die of slow death (already in ICU ,financially). VW injection of capital and creativity will spark a new vigor. Example Walter De sIlva, design creator of Mk6 Golf used to ply his trade in AR. There are similar vein of creativity already embedded.
2) AR suffers so much under FIAT. Being a second fiddle to other “famous” brand in FIAT, AR can never fully realized its creativity and flair under FIAT. In VW, it will flourish.
3) AR design cue + VW efiiciencies = superb product that normal people can enjoy. You do need to love seeing your mechanics often to enjoy AR.
4) VW will preserved the business continuity of AR better than AR. For VW , it business decision. In FIAT, its a state agencies who cared less about P&L. After spending huge money acquiring AR, they will have great responsibility to make it successful.