Alfa Romeo Targets 300,000 Sales by 2016 with US Return and New Models
Alfa Romeo plans to triple global sales to over 300,000 vehicles by 2016, banking on fresh models and a renewed push into the US market after nearly two decades away.
Alfa Romeo has announced a bold strategy to triple its global sales by 2016, targeting more than 300,000 vehicles annually. This represents a significant increase from the 101,000 units sold worldwide in 2012. The company’s approach involves launching new models and re-entering the United States market after nearly two decades away. The plan is seen by some analysts as ambitious, but Alfa Romeo’s management believes it is achievable with a refreshed product range and a broader market presence.
Alfa Romeo's Ambitious Growth Target
Current Sales and Market Position
In 2012, Alfa Romeo’s sales were heavily concentrated in Europe, which accounted for almost 90% of its global volume. The company’s best-selling models at the time were the Giulietta compact hatchback and the MiTo subcompact. Both models, however, are ageing and face stiff competition from rivals in their segments. Alfa Romeo’s European boss, Louis-Carl Vignon, has acknowledged that the brand’s current line-up only covers about 5% of the global automotive market. This limited reach has left the company vulnerable to fluctuations in the European economy and has restricted its growth potential.
Strategy for Expansion and US Return
To achieve its ambitious sales target, Alfa Romeo is focusing on two main strategies: expanding its product line-up and re-establishing itself in the United States. Vignon has stated that with new products and a push into new markets, Alfa Romeo can not only reach but potentially exceed the 300,000-unit goal. The company aims to increase its segment coverage to 32% of the global market by 2016, a significant leap from its current position.
A key part of this strategy is the return to the US market, which Alfa Romeo exited in 1995. Despite the long absence, company executives believe the brand still enjoys a strong level of recognition among American consumers. The relaunch in the US will be spearheaded by the 4C sports car, a model intended to serve as a halo for the brand and attract attention in a highly competitive market. The 4C is set to arrive in the US in November, following its European debut, where it is priced at €60,000. Alfa Romeo planned an initial production run of 1,000 units for the 4C in Europe, with US pricing yet to be announced at the time of the initial announcement.
Product Line-Up and Future Models
The Giulietta and MiTo continue to anchor Alfa Romeo’s line-up in Europe, but both are several years old. The company recognises the need for fresh products to attract buyers in established markets and to appeal to new customers in markets like the US. In addition to the 4C, Alfa Romeo is planning to broaden its range with further models designed to meet the needs of North American and global buyers. This expansion is part of a wider strategy to compete in more market segments and reduce dependency on any single region.
The company’s parent group, Fiat, has also outlined a plan to offer a combined line-up of 16 Fiat and Alfa Romeo models in North America by 2016. This broader portfolio is intended to give the brands a stronger presence and more opportunities to capture market share in the region. For Alfa Romeo, the focus will be on launching vehicles that can compete in popular segments and appeal to American tastes, while maintaining the brand’s distinctive Italian character.
Reducing Reliance on Europe
Alfa Romeo’s heavy reliance on the European market has been identified as a key weakness, particularly given the region’s recent economic challenges. By 2016, the company aims for Europe and the US to become its two largest markets. Management sees the US as essential for achieving the planned sales increase, with the 4C positioned as a flagship model to help re-establish the brand’s reputation and desirability. The broader strategy also includes entering other international markets, although details beyond the US and Europe have not been specified.
Challenges and Outlook
Some industry analysts remain sceptical about Alfa Romeo’s ability to meet such an ambitious target in a relatively short timeframe. The brand faces significant challenges, including strong competition from established rivals, the need to update its model range, and the difficulty of rebuilding a presence in the US after a long absence. However, Alfa Romeo’s management is confident that with the right products and a renewed focus on global markets, the company can achieve substantial growth. The next few years will be critical in determining whether Alfa Romeo can deliver on its ambitious sales goals and secure a stronger position in the global automotive industry.
