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Discussion Starter · #1 ·
1 Hour interview -

Key points:
  1. Admits brand has struggled, many goals were not reached.
  2. Focus on:
    • #1 thing - deliver premium customer experience - Dealers are 2nd worst in sales satisfaction and worst in customer satisfaction as a premium brand
    • Stabilizing the ship
    • Network engagement
    • Improve quality - Defect rates today out of the plant are 1/3 the rate of 2 years ago
  3. 2022 model year launches in July, 4 months earlier than normal for Alfa, and in line with competitors. This helps with residuals.
    • Complexity reduced by 70% for 2022.
  4. 140 total dealers, 177 4 years ago. 80% of sales come from 20% of dealers.
  5. Residual values are a key focus. 80% of Alfas are leased. Goal is to get to industry average of 60-65%.
  6. Youngest buyer demographic of any premium brand. Income levels on par with competitors.
  7. Product Updates:
    • B Segment SUV not coming to North America
    • Focus on CDEF.
    • Stelvio and Giulia redesign will come "in time"
    • Tonale "in the next year or so" - will offer a PHEV version, implying a non-PHEV will also be offered
    • Wants "customer driven solution" not necessarily a Grand Wagoneer Alfa.
    • Currently redefining the brand. Must be Alfa Romeo first and foremost.
    • New lead designer for Alfa Romeo starting July 1 - wants to focus on core Alfa DNA and simplification in design
  8. "I don't know where the customers are" - the strategy for growth is still in progress. (Really??)
  9. Alfa needs to go electric, but the dealer network will hold them back?
Overall, I wasn't that impressed. Alfa is using the "Slow Follower" strategy, always being 3 steps behind. The answers around electrification were head scratching.
 

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2nd worst in SSI & worst in CSI as a premium brand. Haven't we all been saying that's the Achilles heels since the beginning?

I don't know where the customers are" - the strategy for growth is still in progress. (Really??)
That's what what I heard in the video. Dominique was very specific that they are targeting millennial generation, and more specifically the Alfisti within that generation.

darn it. Was hoping it wouldn’t make it.
Got to go where the money is while maintaining the brand identity. For a historic example see Porsche.
 

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Discussion Starter · #6 ·
2nd worst in SSI & worst in CSI as a premium brand. Haven't we all been saying that's the Achilles heels since the beginning?


That's what what I heard in the video. Dominique was very specific that they are targeting millennial generation, and more specifically the Alfisti within that generation.


Got to go where the money is while maintaining the brand identity. For a historic example see Porsche.
Almost every brand in every industry is targeting millennials.

I expected: "We know the types of people most likely to become Alfisti and we are targeting this small group to educate them on the brand and nurture our relationship with them. We're constantly asking for feedback from current owners on how to improve products and the ownership experience."
 

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2018 Q4 with Fiamenghi Ti exhaust, Race Mod, and Tecnico wheels.
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Complexity reduced by 70% for 2022 is misleading. It means that they reduced the number of combinations that you can order by 70%. For example, the highly desirable TI sport no-sunroof combination is no more.
 

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I've been banging on the "the dealer network is the main problem and the first priority or it won't matter what else you do" drum for years. Glad to see someone in charge has gotten the message. This car is a 5 year old design now, and it's STILL better looking than any other sedan on the market. Sergio left them with the crown jewels when he died, and the mis-management of the brand has just been astounding. At least in the United States. If 80% of the sales are coming from 20% of the dealers, how about figuring out how and why, and replicating that formula elsewhere? The silence from FCA management the last few years has been deafening. Granted the virus made last year a mess, but they should have had things in motion much earlier. Instead, we the loyal customer base, have had to just sit and watch the dealer network steadily crumble in state after state. It's a testament to how great a car it really is, that they're still selling in the numbers they are. Can you imagine what the numbers would be like with an adequate, competent network of dealers in every state?
 

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2nd worst in SSI & worst in CSI as a premium brand. Haven't we all been saying that's the Achilles heels since the beginning?


That's what what I heard in the video. Dominique was very specific that they are targeting millennial generation, and more specifically the Alfisti within that generation.


Got to go where the money is while maintaining the brand identity. For a historic example see Porsche.
I agree the cayenne saved Porsche. But we already have a Stelvio that they don’t market, sell or service properly.
 

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...If 80% of the sales are coming from 20% of the dealers, how about figuring out how and why, and replicating that formula elsewhere? ...
... they don’t market, sell or service properly.
Exactly.
What I get out of that video is 80% of the dealers suck. That's what you get when you sign up anyone with a pulse for a dealership. Fire everyone in corporate that's hindering AR in the US, hire the guy that runs Lexus for Toyota, keep the 20% of dealerships that are successful and build it up from there. It will be a painful, expensive, and slow march, but it's better than the slow death spiral they are on.
 

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1965 Giulia Spider Veloce, 2019 Stelvio
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1 Hour interview -

Key points:
  1. Admits brand has struggled, many goals were not reached.
  2. Focus on:
    • #1 thing - deliver premium customer experience - Dealers are 2nd worst in sales satisfaction and worst in customer satisfaction as a premium brand
    • Stabilizing the ship
    • Network engagement
    • Improve quality - Defect rates today out of the plant are 1/3 the rate of 2 years ago
  3. 2022 model year launches in July, 4 months earlier than normal for Alfa, and in line with competitors. This helps with residuals.
    • Complexity reduced by 70% for 2022.
  4. 140 total dealers, 177 4 years ago. 80% of sales come from 20% of dealers.
  5. Residual values are a key focus. 80% of Alfas are leased. Goal is to get to industry average of 60-65%.
  6. Youngest buyer demographic of any premium brand. Income levels on par with competitors.
  7. Product Updates:
    • B Segment SUV not coming to North America
    • Focus on CDEF.
    • Stelvio and Giulia redesign will come "in time"
    • Tonale "in the next year or so" - will offer a PHEV version, implying a non-PHEV will also be offered
    • Wants "customer driven solution" not necessarily a Grand Wagoneer Alfa.
    • Currently redefining the brand. Must be Alfa Romeo first and foremost.
    • New lead designer for Alfa Romeo starting July 1 - wants to focus on core Alfa DNA and simplification in design
  8. "I don't know where the customers are" - the strategy for growth is still in progress. (Really??)
  9. Alfa needs to go electric, but the dealer network will hold them back?
Overall, I wasn't that impressed. Alfa is using the "Slow Follower" strategy, always being 3 steps behind. The answers around electrification were head scratching.
Sorry to be late to the conversation. Have been trying to contact anyone at Stellantis with decision making ability along with their responsibility.
Point 1 - Contacted Stellantis & Heritige links to email and introduce myself to Alfa Romeo Communicators. No response, but suddenly started receiving press releases for most brands. No response to Press Password.
Just a side note - No link to USA in International Drop Down Link. We are watching 1995 approach again in slow motion.
As AROSC (www.arosc.org & www.dev.alfaclubracing.com - upgrade in process) is the largest of the 46 independent Incorporated affiliated clubs under the blanket of the national Alfa Owners Club.
We are involved with the other California Clubs, we participate in most major West Coast Alfa Romeo related events, promotional activities and write about them in our 30+ page newsletter, "Alfacionada" it was assumed someone in Stellantis Alfa Romeo World would be interested.
Ie:
The last Sunday in June we will be at the annual "Highway Earth" (sold out) Event, Franklin Canyon, Beverly Hills
In July we will be at Huntington Beach Concorse
Aug, 8 to 16: Monterey Classic Car Week ( ) which includes, on Aug 11th "Concorso Italiano (www.concorso.com). Of the approximately 200,000 people that come to Monterey there should be around 10,000 at Concorso Italiano. On the previous Thurday evening AROSC sponsors a dinner for Alfisti and guests at a private restaurant in downtown Monterey. If anyone from Stellantis would like to join us, you will be our guest. Our guests over the past 20 years have included Le Mans Champions, Formula 5000 Champions, Designers, Authors, and the 12 man Alfa Romeo Bonneville Speed Record Team.
Point 2 -
General Information:
California Is The Fifth Largest Economy In The World
a) Porsche sells more cars in California than any country in the world with the exception of China.
b) BMW, in addition to the amount of cars they sell in California, exports more Made in America cars than any other manufacturer.
c) Both of these companies along with Corvette are regularly advertising their "Brand Experience" (which is not inexpensive and questionably effective).
d) AROSC has been officially on track since 1972 offering an "Alfa Romeo Experience". Our "Not for Profit" school training events, open to all Marques, started over 25 years ago and offer Novice, Advanced and Alfa Romeo Time Trial Classes and a Racing School based on SCCA rules.
Most of Alfa Owner Club affiliates do have basic events with some training, autocross, time trials and rally's. Our people could up the quality of their training with very little costs.

MOST IMPORTANTLY IS NOT TO REPEAT HISTORY. Alfa Romeo in left the USA in 1995 because of the lack of support and not understanding the market and the dealership support. The late author, Pat Braden, in his book "Alfa Romeo Giulia History and Restoration" cleary, in the introduction, identified the marketing and dealership incompetence from 1967 (pafe 5/6) when the owned then lost the sport sedan category until they left the USA around 2 generations ago.
Now that they are back in the USA and, based on our contacts and survey's, the dealership managers and sales forces are terribly unprepared. Weak on history / heritage / performance / how to sell prestige, etc, etc.
 

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Thanks for posting this video! I have found it very interesting! I think Larry came across as a very knowledgeable executive who has a clear vision on what needs to be fixed and is very passionate about the brand. Let's hope we will see some dealership improvements soon!
 

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….. Giorgio left them with the crown jewels when he died, and the mis-management of the brand has just been astounding. At least in the United States. If 80% of the sales are coming from 20% of the dealers, how about figuring out how and why, and replicating that formula elsewhere? The silence from FCA management the last few years has been deafening….
All the operational stuff talked about in the interview are all good ideas to improve the ownership experience, and to get new customers. Finding a car should not be as difficult as it is on Alfa's website. I was really surprised to hear that 20% of dealers account for 80% of the sales...... is that a dealer issue, or is it a product supply issue, or just lack of customers in some markets? He mentioned 'tools' for dealers..... i think having a process to buy a car from anywhere in the lower 48, and having the car delivered with the paperwork(rego, tax, title, etc) dealt with as best as possible would be a good thing IMHO. Having MY2022 ready to go in time seems like a no-brainer, and im glad they've addressed it.

A word of caution to Alfa...........
Pre-Stellantis..... Alfa built the car i wanted, despite not having the operational stuff sorted out.... i figured, I can forgive the 'operational' stuff for a car that i want. Going forward, if they sort out the operational stuff and make products i don't want..... they wont be making a sale to me (others might bite, but i wont).

IMHO Sergio’s passing is when it all started to fall apart(for Alfa), and I blame Manly…. circa ~2019 he cancelled models, scaled back investment... there seems to be a direct correlation between the decisions he made and where Alfa is today (specifically the lack of new models and lower sales)) IMHO.

Cheers
 

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2020 Giulia Quattroformaggio, 2020 Stelvio TI Sport
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A word of caution to Alfa...........
Pre-Stellantis..... Alfa built the car i wanted, despite not having the operational stuff sorted out.... i figured, I can forgive the 'operational' stuff for a car that i want. Going forward, if they sort out the operational stuff and make products i don't want..... they wont be making a sale to me (others might bite, but i wont).
Exactly. You nailed how I feel about this. They need BOTH to succeed, but for this owner (me), they need to keep making cars like the Giulia, Stelvio, and 4C.
 

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All the operational stuff talked about in the interview are all good ideas to improve the ownership experience, and to get new customers. Finding a car should not be as difficult as it is on Alfa's website. I was really surprised to hear that 20% of dealers account for 80% of the sales...... is that a dealer issue, or is it a product supply issue, or just lack of customers in some markets? He mentioned 'tools' for dealers..... i think having a process to buy a car from anywhere in the lower 48, and having the car delivered with the paperwork(rego, tax, title, etc) dealt with as best as possible would be a good thing IMHO. Having MY2022 ready to go in time seems like a no-brainer, and im glad they've addressed it.

A word of caution to Alfa...........
Pre-Stellantis..... Alfa built the car i wanted, despite not having the operational stuff sorted out.... i figured, I can forgive the 'operational' stuff for a car that i want. Going forward, if they sort out the operational stuff and make products i don't want..... they wont be making a sale to me (others might bite, but i wont).

IMHO Sergio’s passing is when it all started to fall apart(for Alfa), and I blame Manly…. circa ~2019 he cancelled models, scaled back investment... there seems to be a direct correlation between the decisions he made and where Alfa is today (specifically the lack of new models and lower sales)) IMHO.

Cheers
If 20% of the 140 dealers are making 80% of the sales, that's only 28 dealers. To me, that also means there's really only 28 dealers worth taking your car to for service. I can see he gets how serious that is. Now it's a matter of fixing it, otherwise Alfa Romeo will become a truly niche brand sold only in a few areas. Question is, would it be profitable like that?
 

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Can somebody please explain me how Alfa Romeo has been able to survive, almost 100 years, between 1910 and 2009 and then, from 2018 until today? As far as I understand, Marchionne's 9 years in FCA were 2009 - 2018 so, what happened in the rest of the 102 years of this brand. I propose that what happened in those 102 years, will happen again.
 

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IMHO, to me, its not about whether or not the company “survives”. It’s about the products it offers.
They survived rebadging Fiats…. but i didnt really care about their product portfolio when they did.
 

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1965 Giulia Spider Veloce, 2019 Stelvio
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1 Hour interview -

Key points:
  1. Admits brand has struggled, many goals were not reached.
  2. Focus on:
    • #1 thing - deliver premium customer experience - Dealers are 2nd worst in sales satisfaction and worst in customer satisfaction as a premium brand
    • Stabilizing the ship
    • Network engagement
    • Improve quality - Defect rates today out of the plant are 1/3 the rate of 2 years ago
  3. 2022 model year launches in July, 4 months earlier than normal for Alfa, and in line with competitors. This helps with residuals.
    • Complexity reduced by 70% for 2022.
  4. 140 total dealers, 177 4 years ago. 80% of sales come from 20% of dealers.
  5. Residual values are a key focus. 80% of Alfas are leased. Goal is to get to industry average of 60-65%.
  6. Youngest buyer demographic of any premium brand. Income levels on par with competitors.
  7. Product Updates:
    • B Segment SUV not coming to North America
    • Focus on CDEF.
    • Stelvio and Giulia redesign will come "in time"
    • Tonale "in the next year or so" - will offer a PHEV version, implying a non-PHEV will also be offered
    • Wants "customer driven solution" not necessarily a Grand Wagoneer Alfa.
    • Currently redefining the brand. Must be Alfa Romeo first and foremost.
    • New lead designer for Alfa Romeo starting July 1 - wants to focus on core Alfa DNA and simplification in design
  8. "I don't know where the customers are" - the strategy for growth is still in progress. (Really??)
  9. Alfa needs to go electric, but the dealer network will hold them back?
Overall, I wasn't that impressed. Alfa is using the "Slow Follower" strategy, always being 3 steps behind. The answers around electrification were head scratching.
A response to: Jon1, post: 907369, member: 28500
Key points:

I had the good fortune to grow up in a series of successful corporations that operated on "Theory Y Philosophy".
Theory Y—the integration of goals—emphasizes the average person's intrinsic interest in their work, their desire to be self-directing, to seek responsibility, and their capacity to be creative in solving business problems.
In summary: An employee, at any level, must have a clear understanding of their responsibility (which has been have agreed upon with their manager), and have the authority to make decisions managing this responsibilty. Based on the limited information I have been able to glean - conversations, articles, organizational charts (with descriptive notes), etc. It is very clear that Stellantis, unless I'm grossly mistaken, is almost a textbook Theory X managed business. Management decisions are ultimately made at the top of the pyramid and carried out by the subordinated managers. Usually not challenged, just executed. If anyone is interested, I will bring in both successful and unsuccessful Business Studies in a follow up posts.
 

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Can somebody please explain me how Alfa Romeo has been able to survive, almost 100 years, between 1910 and 2009 and then, from 2018 until today? As far as I understand, Marchionne's 9 years in FCA were 2009 - 2018 so, what happened in the rest of the 102 years of this brand. I propose that what happened in those 102 years, will happen again.
Giuliano, AR survived because of their business in Europe and the non-USA world. At best they've been essentially a marginal presence in the USA when they've been here. I'm convinced AR and FIAT (FCA/Stelantis) have not a scintilla of an idea or understanding of the US market and marketing in the USA. It requires more than just a great driving product. Americans need to have constant advertising to keep the brand on the radar of our 8 second attention span. They made a big splash on re-entry to the USA and then largely disappeared from view. Just stupid IMHO and a perfect plan for failure. Shameful. I truly appreciate my Alfa but the corporate entity is more vexing than raising children.
 

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Giuliano, AR survived because of their business in Europe and the non-USA world. At best they've been essentially a marginal presence in the USA when they've been here. I'm convinced AR and FIAT (FCA/Stelantis) have not a scintilla of an idea or understanding of the US market and marketing in the USA. It requires more than just a great driving product. Americans need to have constant advertising to keep the brand on the radar of our 8 second attention span. They made a big splash on re-entry to the USA and then largely disappeared from view. Just stupid IMHO and a perfect plan for failure. Shameful. I truly appreciate my Alfa but the corporate entity is more vexing than raising children.
I know how to fix this. I've been involved in retail for 37 years, including some very successful companies. A couple years ago I managed to establish contact with some FCA execs. The initial conversations were very promising, but right afterwards the pandemic hit, and totally screwed things up in that regard. I've now written to the only contact point I've been able to find for Stellantis, to try and get connected to Larry. From what I've seen he does "get it", but isn't exactly sure how to fix it. It sounds like he's serious about it though, so there's hope. They need to use a completely different way of marketing and selling Alfa Romeos than what they've been doing, or they risk getting too far behind the competition, and it costing too much to try and compete. They've already lost billions, so it's doubtful they'd want to risk more if they don't have a working strategy for the business to survive.

From that video, it sounds like Larry is the kind of guy who will recognize what I want to do, and have the authority to do it. It's a customized strategy, but Alfa just happens to fit it perfectly. I hope I can get in touch with him.
 
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