1978 Alfa Romeo Spider Volce on 2040-cars

Auto blog

China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.

Alfa Romeo boss targeting Lexus reliability, cheaper future models

J.D. Power's U.S. Initial Quality Study measures an aggregate number of problems suffered by light-duty vehicles during the first 90 days of ownership. In the 2021 survey, the industry average was 162 per 100 vehicles over that first 90 days. Ram topped the charts with the best result, posting 128 problems per 100 vehicles in 90 days. Lexus ranked third, at 144. Out of the top 33 brands measured verifiably according to the methodology — Tesla came with an asterisk — Alfa Romeo finished 29th. In Consumer Reports' 2020 Brand Report Card, Lexus placed fifth out of 32 brands, Alfa Romeo 28th. The Italian carmaker's CEO, Jean-Philippe Imparato, wants to get his brand closer to that Japanese brand. During the first European test drive of the new Tonale crossover, he told Automotive News, "My quality benchmark is Lexus." There's a long way to go, but Imperato believes he knows the route. Doing the same quick work in Italy that Carlos Tavares did with Opel, Imparato — who led Peugeot to being the second-best-selling marque in Europe — has turned Alfa Romeo to profit before the release of the Tonale. He's only been on the job 16 months.  There are customer-facing approaches to improving confidence in the brand. The Tonale sits on the oldest platform in the Stellantis parts bin, the CUSW architecture that rolled out with the Giulietta in 2010, so it stands a better chance of having all of its bugs flushed out by now. The blockchain-enabled telematics recorder keeps what is intended to be a tamper-proof record of the vehicle's use and maintenance, preventing skullduggery about accidents and mileage and sketchy service. Alfa has enough faith in it to offer what's said to be a five-year, 75,000-mile unconditional warranty on the Tonale in Europe. We won't know how the nitty gritty bits hold up until Tonales hit the road, but the goals are admirable.        The reliability push is just one more step in Imparato's re-establishing the market segments, perception, and touchpoints of the Alfa Romeo brand. He told Wheels at the same event, "before we reach for the stars, we must get the basics in order," beginning with "the quality issues," then improving resale values, and then launching more affordable models. The Giulia sedan and Stelvio crossover have been dominated by the Germans they're meant to challenge, and "they are too pricey for Alfisti who would like to trade up from a Giulietta, let alone the MiTo" European subcompact.

Junkyard Gem: 1979 Alfa Romeo Spider Veloce

During the middle-to-late 1970s, things got pretty grim for American car shoppers wishing to drive a (non-exotic) new European two-seat convertible. British Leyland would sell you a 1979 MGB, Spitfire, or TR7 at a good price, but you got only 67.5, 52.5, or 88.5 horsepower, respectively, in those cars (yes, BL claimed the half-horse in official ratings, because that's how the Malaise Era was) plus the Prince of Darkness riding shotgun. Fiat offered the 124 Sport Spider for a bit more than those British machines in '79, but that car had a mere 86 horses under the hood. That's where the Alfa Romeo Spider Veloce came in; for a bit more money, you got 111 fuel-injected horsepower and a car that still looked futuristic more than a decade after its introduction. Alfa Spider prices have gone way up in the last decade, so I don't see many of these cars in the self-service car graveyards I frequent. That makes today's Junkyard Gem, found in a yard near Denver, a fairly rare find. Someone yanked the cylinder head off, probably years ago, and then never finished whatever engine work had been planned. This is a common sight with vintage sports cars in junkyards. The 1994 Colorado State Parks pass shows that at least this Alfa was running 28 years back. Inside, there are many receipts for extensive mechanical work done during the 1980s. These cars were better-built than their British Leyland and Fiat rivals, but that doesn't mean they were easy to work on. How about getting a head-gasket job plus a bunch of other work done for just over 500 bucks? Even with inflation, that's a deal! At some point, someone sliced up the factory radio faceplate to install this 1980s Blaupunkt cassette deck. This looks like a CR-2001, which was high-end factory equipment in Porsches and BMWs around the time this Spider was new. The interior has some parts that look nice enough to be worth buying, so let's hope that some Front Range Alfa Romeo enthusiasts show up and score some nice pieces for their project cars. The MSRP on this car was $11,195, or about $45,700 today. The Fiat 124 Sport Spider went for $7,090, while the TR7 convertible cost $9,235. Meanwhile, a new 1979 Chevy Corvette with the optional L82 engine listed at $11,425 and had 225 horsepower; it also weighed 917 pounds more than the Alfa and had much more ponderous handling.