Jean-Philippe Imparato's strategy for Alfa Romeo

[Bili]

That to me is a very positive way to manage Alfa. Less talk and more results. That way he is not setting unrealistic expectations like Marchionne did and any sales increase will be perceived as positive.

Well... Based on the installed capacity for Giulia and Stelvio he wasn't telling the truth.

Maximum combined capacity was roughly 135k per year globally. That's for Giulia and Stelvio.

 

[Deckard Cain]

Then why did he talk about 500k sales per 2020? A completely unrealistic proposition.
I prefer this approach to be honest, start with less bluster and more action.

 

[Bili]

I think that the goal was 400k with 8 models. 8 new models.

And even this is far fetched. They would earn large sum of money even with only 250k cars per year distributed over 5 to 6 models. It's a very specific market.

I've heard some numbers for Tonale. Even with modest sales they should earn a lot. It could be as low as 40k per year. Double would be ideal number. We are talking about market where base price level is already ridiculous, like Grand Cherokee level for a car 2 or 3 class size smaller.

 

[Deckard Cain]

I have high hopes for the Tonale but it has been hit by delays. To me if there's something that gives me hope for Stellantis is that PSAs philosophy to control costs is to pump out more models, as opposed to FCA which follows the philosophy of shelving models and avoiding cannibalization.

 

[Tony K]

PSAs philosophy to control costs is to pump out more models, as opposed to FCA which follows the philosophy of shelving models and avoiding cannibalization.

Considering one of the big factors in AR's inability to get traction is not having more models, they'd darn well better.

 

[Appassito]

Then why did he talk about 500k sales per 2020? A completely unrealistic proposition.
I prefer this approach to be honest, start with less bluster and more action.

Action:

 

[Tony K]

I have high hopes for the Tonale but it has been hit by delays. To me if there's something that gives me hope for Stellantis is that PSAs philosophy to control costs is to pump out more models, as opposed to FCA which follows the philosophy of shelving models and avoiding cannibalization.

I don't believe that FCA actually operated on a philosophy of shelving models to control costs per se, so much as take a reactive approach in order to establish a financial position suitable for merger, but they did take "avoiding cannibalization" to it's radical ends, instead of managing cannibalization to tolerable levels. All that said, Stellantis exists because FCA's owners believed it was necessary, and did what they thought necessary to that end. Absent that scenario, I don't believe these practices are givens, at least not to the extent practiced.

 

[Bili]

I don't believe that FCA actually operated on a philosophy of shelving models to control costs per se, so much as take a reactive approach in order to establish a financial position suitable for merger, but they did take "avoiding cannibalization" to it's radical ends, instead of managing cannibalization to tolerable levels. All that said, Stellantis exists because FCA's owners believed it was necessary, and did what they thought necessary to that end. Absent that scenario, I don't believe these practices are givens, at least not to the extent practiced.

PSA has separate sales network for each brand.

FCA doesn't.

Think about it for a second.

 

[Tony K]

PSA has separate sales network for each brand.

FCA doesn't.

Think about it for a second.

I was specifically referring to FCA pre-merger. The point wasn't relevant to post-merger Stellantis or pre-merger PSA.

 

[Deckard Cain]

PSA has separate sales network for each brand.

FCA doesn't.

Think about it for a second.

In Portugal many PSA dealers are stuck in the same building. Granted they do have separate showrooms...