Alfa Romeo Delays US Return

The long-awaited Alfa Romeo return to the United States has been postponed by parent company Fiat due to the so-called “depressed market” that would massively affect the brand's sales. "It would be simply crazy to invest in bringing Alfa back to a depressed U.S. Market," Fiat Group Automobiles CEO Sergio Marchionne told Autonews, explaining that a possible relaunch on the US market may take place in 2011.

The Alfa Romeo brand was retracted from the North American market in 1995 and since then, rumors concerning a potential return on this side of the market spread all over the world. Fiat CEO Sergio Marchionne confirmed the speculations in May 2006, pointing that Alfa Romeo's re-launch in the United States will be “celebrated” with a range of new models, including upgraded 159, Brera and Spider models.

There were several options for the return of Fiat Group on the American market, the Italian company aiming to sign a deal with local manufacturers, including General Motors, Ford and Chrysler. Such an agreement between Fiat and one of the aforementioned companies would mean both a production facility and equipment for the Italian company, which could reduce overall costs but also boost the American sales.

Fiat's decision to postpone the US re-launch is somehow obvious in the context of global economic crisis, more and more car and motorcycle manufacturers announcing job cuts and lowered production due to small demand on the North American market. Yamaha, Suzuki and Honda are probably the best examples in this matter, all three motorcycle giants preparing reduced production for the next years by more than 100,000 units.

Fiat does the same thing in China, even though the Italian company initially planned to sell approximately 300,000 units on this market. However, Marchionne confirmed for Autonews that Fiat's goals were reduced to only 50,000 units per year, obviously due to the global recession.