Fiat Chrysler unveils new Alfa Romeo sedan for U.S.
MODENA, ITALY -- The Alfa Romeo Giulia was revealed today in Milan with Andrea Bocelli singing opera as the first salvo in an ambitious plan to create a renaissance for the storied brand and climb to the same level of respect given to Audi, BMW, and Mercedes-Benz.
The launch of the Giulia -- and the models that will follow -- is among the main pillars that will either lead to FCA's success over the next five years or will lead to its failure.
Today, Fiat Chrysler CEO Sergio Marchionne reaffirmed plans to spend 5 billion euro or $5.6 billion to develop eight new models including the Giulia by 2018 and global sales of 400,000. North America is expected to account for about 150,000 of those sales.
FCA plans to achieve its lofty goals for Alfa Romeo by designing cars that connect with Milan's roots as a fashion capital and to launch cars that include technical and performance breakthroughs.
Marchionne said several hundred engineers worked on the design of the Giulia and are working on the other cars and trucks in a top-secret location near Modena, Italy that is isolated from the rest of the company.
"We needed a team to think outside of the box to think form a clean sheet of paper. We needed people who could create a fresh approach," Marchionne said. "Alfa Romeo is different because it has been though an intense purification process."
Harald Wester, CEO of the Alfa Romeo and Maserati brand, said the company knows that it must work hard to regain respect after years of mediocrity. The brand, which has a rich heritage in the early 1900s for racing victories, made poor strategic decisions in the 1960s and 1980s when it went after an increase in sales with mainstream cars.
Today, Alfa Romeo is viewed in Europe as a brand that aspires to be premium but falls short.
Wester said the the new Alfa Romeo models will be designed to regain, "Respect for the brand, respect for its substance, and shape and its history."
To get that respect, the automaker intends to make Alfa Romeo cars and crossovers with high performance engines, distinctive styling and unique technology.
The Giulia will have an aluminum, six-cylinder turbo petrol tuned by engineers with Ferrari background that delivers 510 horsepower. The accelerates from 0 to 100 km/h in only 3.9 seconds.
The car has a "perfect" 50/50 distribution across two axles to improve the driving dynamics.
Wester also said the company plans to win customers by designing cars that are different and distinctive from German premium brands, which he claims look similar.
"We want to create a real alternative to the usual fare," Wester said.
The company also unveiled an updated version of the Alfa Romeo badge whose perimeters has been updated but remains the same in the center.
The Alfa Romeo logo, with a snake on one side and a red cross on a white background on the other side, represents the coat of arms of the Visconti family, an Italian dynasty, and a red cross on a white background on the other side that represents the flag of Milan.
"We renewed it and modernized it, but we preserved its soul," Wester said.
Today's event, attended by more than 400 journalists and guests, also coincided with the reopening of the Alfa Romeo Museum.
While Fiat Chrysler Automobiles began selling the 4C -- a small two-seat roadster -- in the U.S. last year but only intends to sell about 1,000 per year in the U.S.
The Giulia is expected to account for a much larger global sales volume.
IHS Automotive said it expects the automaker will sell about 40,000 Giulia's per year after production is ramped up and it is available in all markets. From 2017 to 2020, IHS expects the Giulia to be Alfa's second-best selling vehicle, delivering about 22% of the brand's total global volume.
While some analysts say Marchionne's goal is extremely ambitious, others say Alfa Romeo is an unappreciated weapon in the company's arsenal.