Alfa Romeo in USA in 2010

| Sun, 10/05/2008 - 03:04

Fiat plans to have Alfa Romeo cars back on the American market in 2010, Fiat CEO Sergio Marchionne confirmed here on Friday.

Speaking at the Paris Automobile Show, Marchionne explained that ''at present we are analysing how to bring Alfa Romeo to the USA and with whom, given the various alternatives we have open to us''.

''In 2010 we should have distribution under way, while in regard to production a future plant could be anywhere in North America,'' he added.

Alfa Romeo stopped exporting cars to the US in 1995.

Speaking at the Geneva Automobile Show last spring, Marchionne said that in order to be profitable in the United States, the next Alfa Romeo model would have to be produced there or at least on the same continent.

''At present we don't know where to produce it, but it is impossible to build a (standard) car in Europe and then sell it in the US at a profit,'' the Fiat CEO explained.

Establishing a sales and service network in the USA for Alfa Romeo was not a problem, Marchionne observed, ''because we have several options open to us''.

These included using the network of Fiat's American farm and earth moving subsidiary CNH.

Since then many observers thought that helping Alfa Romeo to return to the USA may have been part of a deal currently being negotiated between Fiat and BMW to produce common platforms and components for new models of their respective Alfa Romeo and Mini marques.

However, on Friday Marchionne denied that distribution in the USA was part of the deal, which is expected to be hammered out before the end of the year.

''Distribution and production are two different matters. A distribution network is already available to us and there are also other alternatives. I don't think it would make much sense to distribute them (Alfa Romeo and Mini) together. They are two products which will basically rival each other,'' the Fiat CEO explained.

Turning his attention to other Fiat activities abroad, Marchionne said that the trendy new retro-inspired 500 model, another candidate for the US market, would not be produced in the plants of Serb automaker Zastava, in which Fiat recently acquired a majority 67% stake in.

The Serb plant, he explained, would be used to produce a new A-segment or small entry-level car, which will be designed to be both highly fuel efficient and environmentally friendly.

Fiat also has plans for a new low cost car which Marchionne said will be produced under another marque in India, where Fiat is allied with Tata Motors, and perhaps elsewhere.

Marchionne also confirmed Fiat's interest in acquiring the Spanish truck-maker Santana but ''only at the right moment''.

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