[alfa] Re: Alfa's US return

[david serafini <dbserafini@xxxxxxxxxxxxx>]

> Date: Thu, 18 Nov 2004 17:01:01 -0800
> From: George Graves <gmgraves@domain.elided>
> Subject: [alfa] Re: Alfa's US return
> [....]
> The only glimmer of sunlight in this cloudy sky is the fact that Luca 
> Di Montezemolo, the head of Ferrari is now the Chairman of Fiat (not 
> the car division, but Fiat corporate). While at Ferrari, he was quite 
> outspoken about the fact that he wanted Alfa Romeo taken out from under 
> the Fiat Auto group and placed under the Ferrari/Maserati group. [....]
>
> George Graves
> '86 GTV-6 3.0 'S'
The problem with this scenario is that the contract between Fiat and
GM says that Fiat can't make structural changes to the auto group
without GM's approval.  Since Alfa is one of the few parts of Fiat Auto
that has the potential to make real profits (combination of volume and
profit margin - neither Fiat nor Lancia has both), it's hard to imagine
GM letting it go.   On the other hand, GM supposedly claims Fiat has
already violated the contract, so who knows.  The thing I don't understand
is why Montezemolo wanted Alfa with Ferrari anyway - the profit margin
on Alfas is tiny compared to Ferraris and Masers.  Why risk getting into
high volume, low profit, sales when you're doing so well at low volumen,
high proft sales?

'86 GTV6  San Jose, CA
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