Alfa Romeo Giulia Forum banner
1 - 20 of 106 Posts

·
Registered
Joined
·
153 Posts
Discussion Starter · #1 ·
The headline below says that starting 2023 Alfa Romeo production will be only upon order. The article goes on to say that Stellantis sales have crashed and in one of the factory (Melfi) not sure what the produce there, they only work 7 days a month.

I can add that I just returned from a 2 week vacation in Italy. The SUV and crossover craze has reached Italy too and there an incredible number of really cool stuff from every manufacturer except FCA. Peugeot ha does have a nice line up. Ford has a very attractive SUV/crossover called PUMA. Hyundai SUV are everywhere. There is nothing new at FIAT/Lancia/Alfa/ Fiat still has an ancient (by car standard) 500L. Every other car in their line up is old. Lancia hangs on with one model and Alfa Giulia and Stelvio are rather rare. I asked around and the reply is always "oh yes we lover Alfa but they are too expensive in comparison to the competition). Cant blame anyone for this situation by themselves.

Product Motor vehicle Automotive tire Asphalt Urban design
 

·
Registered
Joined
·
550 Posts
Alfa's are made in the Cassino plant (Piedmonte San Germano).

Quick search via Wiki says SATA plant in Melfi makes Jeep Renegade, Fiat 500X, and Jeep Compass.

Fiat Group assembly plants

Maybe I'm in denial, and I know the Cassino plant is running nowhere near capacity, but with MY2022 production only starting a couple months ago, I really hope they haven't made a decision like that for MY2023 yet.
 

·
Registered
Joined
·
1,815 Posts
Honesty, if you are low volume this feels like a much smarter way to produce than just making a bunch of cars with x amount of combinations between colors and options, and hope that they will each find a customer.
Custom order for each one of them, so nobody has to settle with missing options or extras they don't want, and direct delivery to the client cutting off the middleman (dealership). Also, delivery should be 2 months, not 6. I guess we'll see...
 

·
Registered
Joined
·
2,358 Posts
Here we go. The end of Alfa Romeo, once again. There is nothing, nothing, that Alfa Romeo management does which will satisfy some. All what they do and say is always wrong. That management has decades of cars development/design, manufacturing and sales combined experience but, no, they are always wrong.

IMHO, this is a brilliant idea. Order it, produce it and ship it. Zero inventory (cash) doing nothing in those dealerships. If you want and Alfa Romeo, simply order it.

Read this article here below. You may like it.

Click Here.
 

·
Registered
2018 Ti Sport Q2
Joined
·
1,163 Posts
Here we go. The end of Alfa Romeo, once again. There is nothing, nothing, that Alfa Romeo management does which will satisfy some. All what they do and say is always wrong. That management has decades of cars development/design, manufacturing and sales combined experience but, no, they are always wrong.

IMHO, this is a brilliant idea. Order it, produce it and ship it. Zero inventory (cash) doing nothing in those dealerships. If you want and Alfa Romeo, simply order it.

Read this article here below. You may like it.

Click Here.
Looks like the end of the line for indigenous-thoroughbred-Italian Alfa Romeos, and a new beginning for Peugeot. 🤬
 

·
Registered
Joined
·
437 Posts
From what I have found, this does not impact the Tonale or Brennero. After those, the brand will move to 80% built to order model. This is smart.

I can’t find it again but I believe they will also do more coachbuilt editions. Very Ferrari of them.

“The new model – explained the CEO of Alfa Romeo – will be “built to order” for at least 80%: we will produce the cars only if we have the final customer. At the beginning of 2021 we were at 38%, we will go to 80% in 2023. This will allow us and the dealers to manage costs better to avoid waste. We must not produce cars that have no customers because stocks are a cancer, no car should stay more than 90 days in parking lots. The challenge of making a very precise control of the production. No impact for the factories because normal to do car if you have customers. You can decide based on the geographical destination, for example by first producing the cars that will go to the US and Japan that have longer logistics times. The life of the factories does not change, but there is more control over production and logistics.”
 

·
Registered
Joined
·
190 Posts
and then you have this printed
Part of the reduced volume through made to order (smart in my opinion) during 2023 could coincide for the need to reshape and retool for BEV production which the articles states starts there in 2024.

Building cars because there is production capacity and then incentivising the sales/purchase process is a very American way of doing things. I don't think too many of the Euro brands build a car that doesn't have a buyer already attached to it, whether that is a consumer, fleet/rental company or dealer.

So no, not likely to be the end but a re-start (one of several to have taken place over the years I admit). Anyway, anyone ordering a 2023 model could consider it "almost bespoke".
 

·
Registered
Joined
·
172 Posts
We are in interesting times. The economic model for brands like BMW, Mercedes, VW, Ford, etc. is historically dependent on volume to survive. It's only smaller, more expensive brands like Aston Ferrari Porsche etc who have been able to get away with low volumes. However even those brands have to produce volume SUVs now.

I've heard much the same rumblings on Bimmerpost that BMW may plan to only produce cars in limited quantities, that way transaction prices are higher. In such a volume-oriented business, I'd love an explanation for how this new model would fare long-term.

Regarding Alfa, it is clear as day that their aspirations have not come to fruition. When they returned to NA there was the expectation they would sell in high volumes and have a sizable portfolio beyond just the two cars they make now. Giulias tend to sit on lots forever unfortunately. If Alfa doesn't plan on finding ways to sell in higher numbers, then they'd need to scale back production somehow. This is the way to do it I suppose.
 

·
Registered
2018 Ti Sport Q2
Joined
·
1,163 Posts
We are in interesting times. The economic model for brands like BMW, Mercedes, VW, Ford, etc. is historically dependent on volume to survive. It's only smaller, more expensive brands like Aston Ferrari Porsche etc who have been able to get away with low volumes. However even those brands have to produce volume SUVs now.

I've heard much the same rumblings on Bimmerpost that BMW may plan to only produce cars in limited quantities, that way transaction prices are higher. In such a volume-oriented business, I'd love an explanation for how this new model would fare long-term.

Regarding Alfa, it is clear as day that their aspirations have not come to fruition. When they returned to NA there was the expectation they would sell in high volumes and have a sizable portfolio beyond just the two cars they make now. Giulias tend to sit on lots forever unfortunately. If Alfa doesn't plan on finding ways to sell in higher numbers, then they'd need to scale back production somehow. This is the way to do it I suppose.
I hate to be a negative-nancy, but i remember people saying Alfa was nuts trying to sell a mid-size sedan when SUVs were all the craze. They they came out with the Stelvio and it sold marginally better.And during that period BMW, MB, Audi, Lexus, Infinity, etc...sold mid-size luxury/sport sedans up the wazoo.

If the new management thinks making 10 different SUV models (on PSA platforms and branded Alfa Romeo, not made in Italy) will make a positive dent in the market, i think they're nuts. First....the average customer probably still wont care, and in the bargain they'll loose Alfa fans (such as myself).
 

·
Registered
Joined
·
34 Posts
I asked around and the reply is always "oh yes we lover Alfa but they are too expensive in comparison to the competition).
Compared to what? Giulia is cheaper than BMW3 and Merc C. Not by much, but it's the same category. You can't expect a car that is on par with BMW or MB at 70% of the price. It's not an Opel-rebadged Alfa 159 that was cheaper than 3-series (because it had to be and it was cheaper to produce), strange the Italian themselves don't understand that.
 

·
Registered
Joined
·
437 Posts
Compared to what? Giulia is cheaper than BMW3 and Merc C. Not by much, but it's the same category. You can't expect a car that is on par with BMW or MB at 70% of the price. It's not an Opel-rebadged Alfa 159 that was cheaper than 3-series (because it had to be and it was cheaper to produce), strange the Italian themselves don't understand that.
Compared to a Fiat 500 lol. I feel like the general public does not make a lot of money in Italy. I went to Sicily for 9 days and I think I may have seen one Giulietta. Fiat 500s were everywhere (not always new of course). Plus, the VAT etc, makes cars very expensive (but you know that, you are from Poland).
 

·
Registered
2020 Alfa Romeo Giulia Sport Ti AWD
Joined
·
7,378 Posts
I can add that I just returned from a 2 week vacation in Italy. The SUV and crossover craze has reached Italy too and there an incredible number of really cool stuff from every manufacturer except FCA. I asked around and the reply is always "oh yes we lover Alfa but they are too expensive in comparison to the competition). Cant blame anyone for this situation by (but?) themselves.

Compared to what? Giulia is cheaper than BMW3 and Merc C. Not by much, but it's the same category. You can't expect a car that is on par with BMW or MB at 70% of the price. It's not an Opel-rebadged Alfa 159 that was cheaper than 3-series (because it had to be and it was cheaper to produce), strange the Italian themselves don't understand that.
I find the "asked around" part interesting. The answer in the US or UK may be entirely different than the answer in Italy.

I was in Milan and the Lake Como area in August 2019 and was disappointed not to see more Alfas. Other than the museum (fabulous!) our most significant exposure was a cab ride in France. My first (and so far only) diesel Giulia experience.
 

·
Registered
Joined
·
427 Posts
So if the bulk of Alfa production is made to order then what does this mean for the dealership situation? Are they moving to a Tesla style of service? Can’t see how that will work for Ice vehicles. I would guess margins at dealers are already in the toilet. How many more will they lose with a made to order strategy?
 

·
Registered
2020 Alfa Romeo Giulia Sport Ti AWD
Joined
·
7,378 Posts
So if the bulk of Alfa production is made to order then what does this mean for the dealership situation? Are they moving to a Tesla style of service? Can’t see how that will work for Ice vehicles. I would guess margins at dealers are already in the toilet. How many more will they lose with a made to order strategy?
Many dealers make considerably more on used vehicles than new ones. Our local Alfa/FIAT store had more Jeeps than Alfas on its small lot this summer. Trade-ins for Stelvios or cars from the same company's CDJR franchise? Probably doesn't matter.
 

·
Registered
Joined
·
437 Posts
So if the bulk of Alfa production is made to order then what does this mean for the dealership situation? Are they moving to a Tesla style of service? Can’t see how that will work for Ice vehicles. I would guess margins at dealers are already in the toilet. How many more will they lose with a made to order strategy?
They won't abandon the dealer model, in the US, because they legally can't.

Dealers will receive the 20% of pre-planned cars to sell everyday.

You can also go to your dealer and place an order (as we do today).

They will also hopefully offer online ordering where you immediately select a dealer, you place the order online via a configurator, and then you take delivery at the dealer. (No negotiating usually in that model though). The dealership still gets their cut, plus they make a relationship to provide service maintenance.
 
  • Like
Reactions: Chipshot
1 - 20 of 106 Posts
Top