Alfa Romeo's reentry to the USA delayed...

[avanti]

My condolences to the American members of the forum, you have to wait another two years... This has to be the worst consequence of the financial crisis so far!

23 Oct, 2008, 2327 hrs IST, AGENCIES
MILAN, ITALY: Automaker Fiat Group SpA delayed until 2011 its plans to launch Alfa Romeo in the US market as the world financial crisis engulfs th
e auto industry, but otherwise stuck to its 2008 guidance and financial goals for 2010.

That did not help shares, which were hurt by the company's worst-case forecast published earlier that said sales could drop up to 20 percent next year.

CEO Sergio Marchionne told analysts in a conference call Thursday that he didn't expect the doomsday scenario to be realized, saying it would represent ``an absolute lock-up of industrial levels in Europe on a scale we have never seen.''

With that, Marchionne both confirmed 2008 forecasts as well as ambitious four-year targets Fiat set out for 2007-10, which included projected group revenues of euro67 billion (US$85.5 billion) and a trading profit of euro5 billion (US$6.4 billion).

``If the financial industry had not disseminated havoc in terms of global stability, the Fiat Group would have made the 2010 numbers in 2009,'' Marchionne said. ``This just screwed up our advancement play.''

In announcing its 15th consecutive quarterly profits, the once-failing maker of Fiat, Lancia and Alfa Romeo autos outlined a ``worst-case'' scenario for 2009 in which sales drop 10 to 20 percent from this year's levels. Fiat said that net income could fall as low as euro400 million, which is a sharp drop from 2008 projections of euro2.4 billion to euro2.6 billion.

Fiat shares were briefly suspended from trading early Thursday for excessive losses. Shares dropped 5.2 percent in afternoon trading on the Milan Stock Exchange to euro6.20 ($7.96) before recovering to close down 1.54 percent euro6.44 (US$8.26).

``What Marchionne did was a clever way of reducing guidance because there is so much uncertainty it doesn't make sense to provide new guidance. He will give quarterly updates, which is fine,'' said UBS auto analyst Phillipe Huchois.

Italy's largest industrial concern reported Wednesday that its net profit rose a modest 1.8 percent in the third quarter, with gains in its auto, agriculture and construction-equipment units offsetting weakness in other divisions. Fiat said its third-quarter net profit was euro440 million (US$565.09 million) up from euro432 million in the year-ago period.

Group revenues rose 3.2 percent to euro14.30 billion (US$18.45 billion) from euro13.86 billion a year ago. It said lower volumes in Western Europe and higher selling expenses associated with the launch of new models were offset by the Brazilian market's strong performance and a better product mix, although Brazil was expected to soften and Marchionne said the automaker hadn't slowed production as much as it should have between the second and third quarters.

Its agriculture and construction-equipment unit saw revenues rise 10.1 percent in the third quarter, but its trucks and commercial vehicles business saw revenues slip 6.2 percent.

Fiat said it expected the rest of 2008 to see reduced volumes compared with original expectations in all its units, with the exception of agricultural equipment. But it said it was confirming its forecast for operating profit for the year at the low end of a range of euro3.4 billion to euro3.6 billion euros (US$4.39 billion to US$4.64 billion).

http://economictimes.indiatimes.com/...ow/3634559.cms

[prizrak]

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!! :'(

[Spectre]

Sorry, but I'm not seeing this as a loss. We don't need more unreliable cars in America, no matter how good they look.

[mclarensmps]

Fuck. At least it gives me more time to save up for the downpayment on mine

[The Chad]

And I was planning on being in the new car market next year. Oh well. Thing is, I know they won't be reliable. Yet, I'd still probably buy one when they get here. Who knows?

[Redliner]

Originally Posted by Spectre

Sorry, but I'm not seeing this as a loss. We don't need more unreliable cars in America, no matter how good they look.

I want to flame you because I love Alfas, but I can't.

[Rokovak]

GOD DAMMIT

Originally Posted by mclarensmps

Fuck. At least it gives me more time to save up for the downpayment on mine

True that. It helps to keep your eye on the bright side. By the time my 149 gets here I should have at least 20% of the price saved up for a chunky down payment.

[Lupin_IV]

Maybe they can take that time to dig their old designs back out of the trash*, and get someone help to make them reliable. Of course, being an Italian company, that will never happen.

*There hasn't been an Alfa Romeo built since 2003 that I like the looks of.

[Walsh_e]

I strangely predicted this the other day, I'd play the lottery but the same day I predicted Alfa would delay going back to the US I also predicted almost every football game wrong, so I guess it evens out. Alfa's aren't as bad as your all making out either, there built alot better than they used to be (alot like saying George Bush is alot smarter than he used to be I know) but they aren't half as bad anymore!

[Twerp128]

Originally Posted by The Chad

And I was planning on being in the new car market next year. Oh well. Thing is, I know they won't be reliable. Yet, I'd still probably buy one when they get here. Who knows?

Me too, I know the dealership will be miles away and the reliability will be shit, but who cares. Oh well, I'll have to wait.

We get the Ford Fiesta next year, and then the Fiat 500 and Suzuki Swift in 2011 too, so I can finally have mah supermini.

[AarheadC]

I know Alfa has had a poor reliability reputation for quite some time now, but is this still the case or have they gotten better?
I know Jaguar has had that rep for a while too even though that is not the truth anymore.

[The_Finn]

well fuck.. i don't so much care because i wanna buy one new but now i am going to have to wait atleast 4 more years before i can pick up a nice used one

[pfrocker]

I can't wait anymore, the pain is too much.

[No Boss]

I remember when it was 2007 they were supposed to be here.... then 2009.... now 2011.... Sooo in 2 years it'll be 2013???

I seriously hate waiting, but if they are basing their decision on the fact that the auto market in the US is bad then they might have to wait longer than 2 years. Unless some BIG changes happen here, our auto market problems will continue to be problems for some time.

/I WANT MY 159!!!
//Everything in the markets suck now.

[Seasonone]

Can't say I am too sad, the early estimates put the Brera at 35k.

35k for a middle of the pack performing car that is unreliable but looks a bit pretty? Won't find me on any waiting lists.

[AiR]

Originally Posted by AarheadC

I know Alfa has had a poor reliability reputation for quite some time now, but is this still the case or have they gotten better?
I know Jaguar has had that rep for a while too even though that is not the truth anymore.

I dont see them as being more or less reliable than any other brand. Service them properly and they'll run fine. If you do not service the car properly it will punish you for it, just like any Audi, BMW etc. It is imperative to change the cam belt on a 156 every 60000km or 4 years for example.

[Hercules286]

So I heard Alfa will package the first 500 cars sold in America with Duke Nukem Forever...

[avanti]

The myth that Italian cars are unreliable is bullshit, if maintained properly they are just as good as your average jap or german car. I have done 600kms in my 20 year old Lancia today, averaging 130km/h, it ran like a dream!

[Spectre]

360 miles, big whoop.

I have yet to hear of an Italian car making the run from Dallas to LA or vice versa, ~1400 miles, without breaking down.

Heck, last month, I helped push a Maserati Quattroporte off the road when the gearbox died. 5000 miles on it. Obvious trophy wife driving, too.

[Lupin_IV]

Yes, we can talk about reliability when Alfa Romeo builds an engine that regularly runs 100,000+ miles without breakdown only changing oil and filters.