Alfa Romeo’s parent company, Fiat, is rumored to be halting investments in the exotic Italian car company, as they scrutinize the future of the brand and their interests.
Alfa Romeo has certainly suffered the wrath of the economic fallout, with dismal sales that have led to Fiat’s decision to review the company. The crossroads has left Fiat CEO Sergio Marchionne to wrestle with the fate of Alfa, a classic in the world of the luxury car.
One option is to freeze all future investment in Alfa Romeo and allow existing models to disperse into the market. Another option could be to bring life back to the struggling exotic car company through Chrysler platforms. According to Marchionne,
“We need to work a lot harder on Alfa to make an intelligent decision that effectively preserves the highest possible value to Fiat.”
The ailing Alfa has suffered sales figures that continue to plummet since 2000, ringing in 2008 with the sale of a skimpy 103,000 units. What that translates to is that Alfa has experienced losses of between $300 and $600 million per year over the past decade.
It will be interesting to see how this situation plays out. It would be a shame to see such a pillar of the luxury car, exotic rental car, and exotic collector car history to suffer any further.
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