Fiat may make Alfa Romeos in US

Fiat SpA, the largest manufacturer in Italy, will reintroduce Alfa Romeo cars in the United States in the next two years and is considering whether to make the vehicles there, Chief Executive Officer Sergio Marchionne said.

"We can think of producing there in the medium-long term," Marchionne said in an interview at the Geneva International Motor Show, reiterating earlier comments.

The dollar's decline to a record low against the euro this week makes it less profitable for European carmakers to produce in Europe and export to the US.

Fiat appointed Luca De Meo as head of the Alfa Romeo division in September as it seeks to accelerate improvement. De Meo previously contributed to Turin, Italy-based Fiat's turnaround as CEO of the main brand.

Alfa's market share in Europe, its main market, was little changed last year, even as registrations grew 44 percent in the United Kingdom after a revamp of the dealer network.

Marchionne said this year won't be a "great year" for the industry when asked whether PSA Peugeot Citroen Chief Executive Officer Christian Streiff's forecast of a decline in the European car market in 2008 was too pessimistic.

Alfa Romeo is introducing the three-door compact Alfa Junior later this year in an effort to meet its target of doubling sales to 300,000 vehicles by 2010.

The Junior model should generate about 25 percent of sales. Alfa Romeo distribution will begin in the US "in 2009 to 2010", Marchionne said. Fiat stopped selling Alfa models in the world's largest economy in 1995 after annual deliveries fell to 414 cars.

Alfa Romeo is the asset that "if we're successful in positioning, is probably going to give us the biggest benefit from a margin standpoint", Marchionne said on Oct 24.

The carmaker said in November 2006 it targeted 20,000 Alfa Romeo deliveries in the US by 2010.

Agencies

(China Daily 03/07/2008 page16)