Alfa Romeo's impressive rebound. From financial hardship to potential golden era in the auto industry
Alfa Romeo has been a financial burden for years. Despite possessing a sizeable and passionate fanbase, the Italian brand struggled financially, and its car models were underwhelming. Over the past few years, the Giulia and Stelvio models were the only renowned offerings, but accolades don't equate to financial success.
The task of revitalizing Alfa Romeo was assigned to Jean-Philippe Imparato following the establishment of the Stellantis corporation. Imparato, who had previously managed Peugeot for seven years, took swift action to refine and simplify the manufacturer's operations, including amending long-term plans.
By 2023, the impact of these changes within the company should be evident. In a discussion with "Automotive News Europe", the head of Alfa Romeo revealed that the brand has made a significant financial rebound. Although Stellantis does not disclose the earnings of individual branches, Imparato provided some intriguing insights.
Foremost, Alfa Romeo is expected to sell between 70-80 thousand cars in 2023, which signifies an approximately 30% increase compared to 2021 and 2022. The Tonale model was primarily responsible for this surge, as it currently represents 60% of Alfa Romeo's global sales. This particular model was instrumental in the Italian manufacturer's overall strategy.
While the Tonale makes the brand profitable, the higher-end Giulia and Stelvio models maintain prestige. Despite Tonale's mass-market appeal, Alfa Romeo has stayed in the premium segment. 2024, the Milano, a small electric SUV, will be added to the lineup. This will be the brand's first electric vehicle, and starting from 2025, all new Alfa Romeo models will be electric.
Additionally, according to Imparato, Alfa Romeo predicts an operating margin of several hundred million euros by 2023. This projection contrasts starkly with that of just a few years prior, indicative of a complete business turnaround. If this trend endures, what started as a golden year could potentially usher in a new golden era for Alfa Romeo.
