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Fiat set to invest $12B on new models, stop Euro losses in 3 years

Naturally, you'd expect a massive automaker like Fiat to have an in-depth plan to exit the current European-market doldrums, and you'd expect that plan to include plenty of new vehicles to attract those precious buyers that still remain despite the financial downturn. And you'd be right, though Fiat does seem to have a few unexpected twists up its corporate sleeve.
Perhaps the biggest shocker is a report that Fiat will completely drop the Punto, a car with mass-market appeal aimed at small-car buyers cross-shopping the popular Volkswagen Polo. Its replacement will be a five-door Fiat 500 aimed at upmarket buyers (sounds awfully similar to the 500L) that will be built in Poland. Lower-end customers will reportedly be served by variants of the Fiat Panda.
Borrowing a page from the BMW, Daimler and Volkswagen playbook, reports Automotive News, Fiat is said to have plans to reignite production at its Italian factories by retooling them to build high-end vehicles from Maserati and Alfa Romeo. These will be marketed as premium products, built by skilled Italian workers (who are paid wages that are 75-percent higher than those building Fiats in Poland), and will be sold around the world.

Marchionne to make Alfa Romeo a separate company within Fiat

According to a report in Automotive News that quotes "people familiar with the matter," the next big play in Fiat CEO Sergio Marchionne's plan for Alfa Romeo is to break it off from Fiat Group Automobiles and set it up as a separate company within the Fiat empire, giving it the same structure as Ferrari and Maserati. The idea, say the sources, is that a transparent, standalone Alfa Romeo that has to justify its every move could clearly prove its success in the public financial statements it would have to report, finally achieving Marchionne's aim of making Alfa Romeo "a credible business proposition."
That, of course, assumes that Alfa Romeo will make a success of it. The brand hasn't made a profit in any year of Marchionne's decade at the helm; sales last year fell to numbers not seen in almost half a century and its new product offensive might not include the two vehicles currently responsible for 99 percent of its sales. We're told that the brand's six new models will begin arriving in 2016 - a roadster, a midsize sedan and large sedan, a compact SUV and large SUV, and a large coupe.
Marchionne aims to expand Alfa's global appeal in several ways, the first by stressing that they are Italian products that 'belong' to Italy. This is the stance that appears to have put the kibosh on the roadster twinned with the coming Mazda MX-5/Miata. Alfa Romeos will all be made in their home country, and if they take off they'll help bandage Fiat's problem with underused plant capacity, a bugbear that is just as problematic culturally and politically as financially. Top-tier trims would use V6 engines developed by Ferrari, and global access would get a boost by selling Alfa Romeos in Jeep's 1,700 international dealerships.

Alfa Romeo considering Ferrari-developed engines for new product lineup

A report in Bloomberg adds more details to the plans for Alfa Romeo's fourth turnaround plan in Fiat CEO Sergio Marchionne's tenure, and this time Ferrari is apparently going to be part of the show. In December Automotive News Europe reported that a new Maserati-derived rear-drive architecture would be the centerpiece at Alfa Romeo, as well as coming Chrysler and Dodge products. At the time, ANE said the platform would support a new midsize sedan and wagon perhaps to be called Giulia, a fullsize sedan and a midsize crossover, with retail appearance of the product initiative commencing perhaps as soon as next year. It would be part of Fiat's $12.3-billion spend on new models and European recovery.
The Bloomberg report says that particulars haven't been finalized, but the plan is to have six new Alfas appear over the next five years, two of which would be SUVs. The futures of the Mito and Giulietta, two of the three cars Alfa currently sells and 99 percent of sales last year, aren't assured, meaning that the lineup in six years could be seven cars (including the 4C), six of which we haven't any definitive clue of yet. The top-tier versions of those cars, according to the report - perhaps the Quadrifoglio Verde - "will be equipped with motors developed by Ferrari."
Marchionne wants to get sales up to 300,000 units per year when the lineup is complete, pairing Alfa sales with Jeep's global dealer network to open up the retail channel. That kind of volume would get Fiat's Italian plants back in business properly, even though Marchionne's stance on Italy-only Alfa production would mean the end of the anticipated roadster that was to be twinned with the coming Mazda MX-5 Miata. Alfa's direction will be laid out in Detroit in May as part of the overall strategy presentation for Fiat Chrysler Automobiles NV.