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Meeting corporate complexity reduction metrics.
Yeah, that's the company line, but as one who worked for an OEM and responsible for a similar program in the '90s I can tell you a lot of it is just "gut feel", that the cost savings can't be quantified. In any event, additional vehicle sales as a result of giving customers what they want quickly exceed any cost savings from cancelled options.
 

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I am also familiar with the subject based on experience. Savings, if any, would come from reduced supplier prices, lower logistics costs, or decreased assembly plant labor. My "gut feel" is that only the middle item is likely. Let's see whether Stellantis cites complexity optimization (or some such) for cutting costs in its next financial statements and how significant those savings are.
My guess is that Alfa has such small sales volume that this complexity reduction project would get lost in the clutter (not mentioned).
 

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I'm thinking from an overall corporate perspective rather than vehicle specific. If savings for RAM trucks aren't significant, then there is probably little to be had. Something like this could kill the "buzz models" some North American Stellantis brands bring to market with relative regularity.
From my OEM experience (over 35 yrs) in engineering + marketing, there is much more profit to be made from adding desirable customer features that drive vehicle sales than the inverse - reducing corporate parts complexity. As I've said, I favor opening up the options on Giulia/Stelvio to encompass all the choices offered through the years, as customer orderable cars. I'd only delete those choices which few wanted historically. Even all exterior colors should be offered and done in batches; that may lengthen build dates, but it would give buyers what they want (and keep the assembly plant open and dealers happy as they move more units).
 

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Reducing complexity might make sense if you offer 17 different cars with 3 body styles, 5 engines and 6 trim levels each.

Reducing complexity for 2 cars with 3 engines - specifically marketed towards "individualists") is peak Alfa corporate idiocy.
Yes, he "gets it". If your primary focus is on the next chapter (EVs), at least give customers reasons to purchase your products in the meantime.
 

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The problem is the popularity of choices is based on dealer orders. Black, white, silver, black interior and lame options combinations. That will not give you the outcome you are looking for. Active Suspension disappeared due to high cost and low volume.

You can't offer an open ended options book, order those parts for inventory, and then only have a couple of orders. Offering a Porsche Exclusive Manufaktur program would be great for us, but the high costs would only hurt the bottom line of Alfa in the US. Would that double or triple US sales?

Alfa is not losing sales to BMW/Audi/MB due to a lack of colors.
I'm suggesting customer orders, not those that dealers place to build their inventories. These would come through the dealers, of course, but have a name associated with them and a deposit down on each one. I think Porsche has proved a manufacturer CAN have an almost unlimited options process, but that's not what I'm thinking. I only want those options that already exist (are tooled up) on Giulia/Stelvios to become more readily available. I don't think it would double or triple Alfa sales, but sales would improve if the word got out that you could build exactly what you want, not the paucity of choices offered today. And I never said Alfa was losing sales because of a lack of colors, although that could be the case for certain colors.
 

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Alfa lost a sale from me due to the limited interior colour options now available. I was fired up to buy a new Veloce but instead bought a lightly used 2020 so I could get the tan interior. Here in Australia at least our colour options are now extremely limited, which I suspect is putting some prospective customers off.
I repeat, if the company can't afford to both transition to EVs and keep their current products updated, at least permit customers to order all the past options offered on the current products.
 

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I know you want customer orders, but the options catalogue is based on what sells in volume. They can’t stock expensive parts for 3 cars a year. So, it is still heavily based on dealer orders, which are bland.

If your idea doesn’t double sales, what was the point? 18k to 36k could be worth talking about. 18k to 19k could be a waste of money.

Your argument is that sales are being lost due to a lack of options. The major option losses people cry about are colors (in/out). Again, I don’t think people are cross shopping the 3 series and buying it bc it has more color options. There’s more to fix before customizable options.
No, the cancellation of options, in this case, appears to be because of a perceived cost savings initiative, though the only folks who really know work for Alfa. You're guessing at the possible sales effect, but what would it hurt to give it a try since the tooling already exists? What makes no sense to me is a wholesale cutting back on customer choices. It's a move suggesting you're going out of business.
Look at cars like the Corvette C8, where they've followed the Porsche example and offer many more options and combinations than on the C7.You can do that with enthusiast cars and Alfas also fit that description.
 

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See, this distorts the problem. Your problem was color and we can all agree limitations exist. However, you already liked the car, so much so, that you were willing to risk your ownership experience with a used car.

You’re already an Alfista, and no we don’t want to lose you, but again the problem is converting new customers from the competition.

Alfa doesn’t lose comparison articles due to a lack of color choices. They lose due to reliability fears, small interior space, poor dealer access or some other item that BMW does better (actual or perceived).
No one on this forum discounts the importance of vehicle reliability perception or poor dealer access to Alfa, but it's almost like the company is giving up on the market. When times are tough and/or you're converting to an entirely different powertrain technology and can't afford to do that and keep upgrading current product you need to do something to keep sales alive. OBTW, Giulia/Stelvio interior space is consistent with the competitive set.
 

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Since they are unable to increase sales, they need to increase their margins. That is either done by raising ASP or lowing costs. Simplifying the ordering process allows them to better control costs, which we have seen, has increased profits.

"We started by making the brand profitable. By the end of the first half of 2021, Alfa Romeo was already proudly making a positive contribution to the Stellantis balance sheet. This target was achieved through efficient management of pricing power and cost efficiency, a first milestone on the way to building for the future in a credible way" (Imparato).

I am not against an array of exciting colors, but I understand their reasoning. If I had a Verde Montreal exterior, I would want a tan interior.

Corvette's are sold out and sell for a huge profit. They have a built in customer base since the 60s. My Father has owned 3 in his life, currently a '10 Grand Sport 6MT. He's been to the factory numerous times, attends racing events and is active in their community. It's a different animal compared to Alfa in terms of sales/volume/size of customer base.


Alfa USA is not spending $ on the STLA-EV project. That is Stellantis with some inputs from Alfa Italy. Alfa USA, in the current climate + their lackluster past decade, need to retreat, regroup, increase margins and better explain to JP and Tavares why they should still be here. They can't just go for broke and offer everything a few enthusiasts want and then go bankrupt. The masses want black interior with black, white or silver exterior. That is why dealers order it...it sells, quickly (relative to AR's average days on the lot).

They are not really losing sales (besides a lack of production/2022 stuff). They sell basically the same number of cars each year (see below).

Dealers order bland combinations. Most sales are not custom orders. What they are doing is reducing costs, simplifying the manufacturing process AND, most importantly, increasing the buyer's chance that a car is actually available on the lot to be purchased. Too much customization means it is nearly impossible to find the features you want. When you can't find it easily, and BMW has it on their lot down the road...you buy the BMW.

As of March 2022: Alfa Romeo Sales Figures – US Market
View attachment 128450
Simply put, we disagree.
 

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Welcome to JIT manufacturing, where they actually have a bare minimum of any components in stock. So yes, it can quickly become cost prohibitive, especially on a low volume car that's not very high margin to begin with.

And it's more than just charging extra. It means having a source parts partner manufacture that different part. And yes, a different color is a different part.

I agree with you on organization restructures. 99% it's a waste of time. But your analogy is really so far off from JIT manufacturing you are not just comparing apples to oranges, but apples to beef.
BS, Biscione. I worked for an OEM for many years and part of that time I created the options listing for the brands I worked on. Once the parts are tooled and the business is placed with sources it's no big deal to offer them up to consumers. The assembly line workers pull parts from this bin versus that one. The fact that the Alfas are low-volume cars helps this happen and plays to the customers of these admittedly "enthusiast" cars. Give the buyers what they want.
 

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I don't get it. They release so many different editions of the 2.0 but all the same power. Why not offer a tune and release something with 300+ HP. Wouldn't cost them much money at all, and they could charge way more for it 🤦🏻‍♂️

This isn't 90s Japan where every car was capped at 276
It isn't that simple. Manufacturers have to go through extensive calibration, durability and emissions testing to offer a new power output on a given powertrain.
 
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