Fiat S.p.A. CEO Sergio Marchionne and Volkswagen CEO Martin Winterkorn are describing a sale of its Alfa Romeo and Ferrari brands to its German rival as simply a “dream.”
At an event in Turin, Italy, Marchionne said that VW’s interest in Alfa Romeo, and its intentions for Ferrari “are nice dreams.” A Fiat spokesman has confirmed that Marchionne had made this statement.
Last September, Volkswagen supervisory board Chairman Ferdinand Piech said that VW is “monitoring” Fiat's position on Alfa Romeo to know if or when Fiat wants to sell.
In the November edition, Germany's Manager Magazin said that according to unidentified observers in the industry, Piech has its sights set on Ferrari. At the Turin event, Winterkorn said that Alfa Romeo “is just a dream,” adding that it “makes gorgeous cars but nothing more.”
On Sept. 30, Marchionne said that he doesn’t want to sell Alfa Romeo and in fact, it seeks to rebuild the brand through the development of new models, which will reenter the US after it had left in 1995.
The CEO estimates that for the division to make a profit, it has to deliver 300,000 cars a year. It has already set a goal to reach this sales target in 2013.
Fiat doesn't give separate figures for Alfa Romeo. Last month, Max Warburton, a Sanford C. Bernstein analyst in London, estimated that the division is likely losing about 300 million euros ($410 million) each year. [via autonews - sub. required]