[alfa] FIAT/ALFA's fiscal woes

[adoherty@xxxxxxxxxxxxx]

In the spirit of BobCors latest venture, there is an article in the 27 Oct. Wall
Street Journal titled: Fiat embarks on Rocky Comeback Road. Article basically
mentions how Fiat's fortunes have skidded over the last 15 years; and how their
current predicament, and perhaps future demise, to a large degree is due to
their comparatively small and poor investment (see Stilo) in new models. The
article goes on to note that Mr. Elkann is responsible for the auto group
"promotion," and reports that new Fiat head Herbert Demel: 

"has trimmed the capital-allocation by a third. Earlier this month, he told
Italian labor unions he is pulling out of the high-end sedan market where
Fiat-owned brands, including Alfa Romeo and Lancia, no-longer are strong--and
where the Maserati brand Fiat also controls could compete."

The above is somewhat cryptic, but I take it to mean the Fiat-branded cars are
going to get back to their Punto-esque roots and stay there. I don't think it
means that Fiats Alfa brand is going to discontinue sedans. Maybe it will. The
article does note later-on that "Alfa Romeo, the sporty glamor brand, had an
8.8% domestic premium, the highest in Europe." As far as FIat Spa dumping the
Auto Group, "Company officials want to clean the unit up before considering
selling it." Whenever that is is anybody's guess.... 

Could be better, but could also be worse....


-- 
Adam S. Doherty
Howard Hughes Medical Institute
University of Pennsylvania--School of Medicine
360 CRB
415 Curie Blvd
Philadelphia, PA  19104   USA

Phone: 215-898-7806
Fax: 215-898-8780
Email: adoherty@domain.elided
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