Flip it! Alfa Romeo is already profitable and can finance itself

Alfa Romeo Stelvio Estrema Special Edition 6

When Stellantis was born, many doubts arose. It was true that the FCA Group was bigger than the PSA Gauls and it was also true that their problems were also more serious. So much so that they did not know very well what the future of one of the most emblematic firms in the automobile sector: Alfa Romeo. And one of the most aggressive executives arrived, Carlos Tavares, announcing that for now none would die, even Lancia.

Well, when not yet three years have passed since the birth of Stellantis there are already results. He has been the CEO of the fourth largest car manufacturer in the world who has taken advantage of the Paris Auto Show to give the good news. Alfa Romeo is already profitable and can already finance its future by itself unsupported. But most important of all, it has been achieved long before its new range even hits the market. You'll see…

Alfa Romeo will present the restyling of the Stelvio next November... and its B-SUV will no longer be called Brennero...

Alfa Romeo Giulia Special Series GT Junior 4

As you well know, holding a car show is a breeding ground for brand CEOs to make headlines. And Tavares was not going to be less, especially since part of his group plays at home. Thanks to Quattroroute and his team we have some Statements from the Portuguese executive who said these words…

“I am very, very happy with what has been done so far. Alpha is doing very well."

These words were not only addressed to Alfa Romeo as brand, also to Jean-Philippe Imparato the executive behind his movements and the one who has worked this miracle. He also added these words…

"Alfa Romeo is safe and its change of course was completed even before the launch of the Tonal. The brand had already returned to significant profitability and 2022 will be a record year» […] «You are now in a position to finance your future«

Alfa Romeo Giulia Estrema Special Edition 1
Related article:
The restyling of the Alfa Romeo Giulia and Stelvio would arrive very soon...

To explain everything, he gave some keys, such as in mid-2022 it had already achieved the same sales figure as the accumulated figure for the entire year 2021. This, despite the microchip crisis and the breakdown of the supply chain in certain suppliers and factories of the group. In addition, the sales of the Tonale have not yet counted, which will be from this second semester when it contributes its numbers to the total. And they won't be the only ones to arrive...

The restyling of the Stelvio will be official next November. Giulia Tavares does not comment on anything but the debut event of the SUV could also be used for the saloon. On the other hand, the Tonale will release the hybrid versions in a couple of months and by 2024 your new B-SUV should hit the market. As data to consider, made official by Tavares himself, finally it will not be called Brennero As announced.

And how has Imparato been able to do it…?

New Alfa Romeo Tonale Veloce

The FCA Group tried, with no success, to turn Alfa Romeo into a premium firm. The Giulia and Stelvio were very good but the public did not see them as such, mainly due to small flaws that made them fall behind all their premium Bavarian rivals. But with the arrival of Tavares there was a change of direction. The most important change came from the ratio of unit sold per profit reported to the income statement...

That is to say: Alfa would stop selling little and with great discounts (to reach a volume that was not reached) to sell the same but without discounts. That is, in the first case they sold at a loss and in the second they went to sell at a profit Well, whoever wanted to buy a model from its range would have to do so at its price. This is the key that Tavares has imposed and the one that, in just over months, has confirmed that the key is profitability...

Alfa Romeo GTV
Related article:
If all goes well, Alfa Romeo could resurrect the legendary GTV and Duetto

The proof of this "premium" twist is in its future models. Looking ahead to 2027, a sports car "true to the DNA and history of the Biscione" will arrive, about which there is still not much information. Of course, those responsible for the brand have given clues that it could be a "indirect" successor to the Duetto or the T33 Stradale. They are not volume models but they do have a lot of unit margin and there will be the key to the future Alfa Romeo.

Source - Four wheels


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