Major Investment
Alfa Romeo’s ambitions are evident in the Giulia’s sales price, which at 34,100 euros ($38,700) for the 150-horsepower diesel version is higher than rivals. The cheapest BMW 3-Series is a 136-horsepower gasoline model for 30,500 euros, while the Audi A4 starts at 31,100 euros and the Mercedes C-Class at about 31,800 euros.
The revival of the Alfa Romeo brand, which was originally a crucial part of Marchionne’s plan to more than double the carmaker’s profit by 2018, was delayed in January when Fiat postponed the target to complete an expansion of the new lineup by two years to 2020. The company also dropped a goal to boost sales more than fourfold to 400,000. Marchionne admitted that the Giulia, which will be followed by the brand’s first sport utility vehicle later this year and by a third model in late 2017, didn’t have an “easy” birth.
“Don’t ask me how much we spent, it cost a lot” to develop the Giulia, said Marchionne, who calls it the best car in its class developed by Fiat since he joined the group 12 years ago, adding that investments in Alfa’s lineup have exceeded 1 billion euros.