Marchionne’s biggest dilemma is to sell or not Alfa Romeo to Vw, report says

Article by Christian A., on December 3, 2010

Whether Alfa Romeo would be sold off to Volkswagen is one of the major topics hounding the auto industry today. Last September, Volkswagen's boss Ferdinand Piech implied that it may take over Alfa Romeo but he declined to provide details.

What Piech had emphasized is that VW has the ability to turn around Alfa Romeo and make it a profitable company. Fiat’s head, Sergio Marchionne, was quick to deny that there were talks. He asserted that Fiat wants to keep Alfa Romeo.

However, an Automotive News report disclosed that Sergio Marchionne has actually been in talks with Volkswagen on the Alfa Romeo sale. The report further revealed that the two companies held talks for about four months but that so far, they haven’t come to a decision.

In fact, Marchionne has created a team to manage the case and to make an outline of what to do in two different scenarios, if Fiat chooses to keep Alfa Romeo or if it opts to sell it.

The outcome is not certain but a source disclosed two factors that might influence Marchionne’s decision. One consideration is that Alfa Romeo is having a hard time reaching its 300,000 units annual sales goal. Alfa Romeo affects Fiat's overall figures and there are huge expenses related to the launching of new models.

Within the next few years, five new Alfas are slated to arrive in the market. Another thing is that if Fiat sells Alfa Romeo, it only means that it will be able to expand its alliance with Chrysler in Europe. Fiat would only have to make Dodge available in Europe and offer its models similar to what it does with Alfa Romeo. [via autoweek]

If you liked the article, share on:

Comments

Recommended

Like it or not, Chevrolet may soon be offering a cheaper Camaro in hopes of competing with Dodge Challenger and Ford Mustang GT. Apart from the less expensive trim, the...
by - August 17, 2017
Recently, Porsche revealed a new Macan Turbo wearing a Performance Package and a unique Porsche Motorsport themed paint. At first look, it will remind you of the 919 Hybrid and...
by - August 17, 2017
The BMW M1 will be one of the most exclusive cars that will be showcased at the upcoming 2017 Pebble Beach Concours d'Elegance, alongside many other extravagant models. Firstly, there...
by - August 17, 2017
Aston Martin Vanquish Zagato makes its debut with a total of four variations including the Speedster and the Shooting Brake trims. As part of the limited edition model, the company...
by - August 17, 2017
Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries