1982 Green Alfa Romeo on 2040-cars

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The new Alfa Romeo Giulia needs to be a BMW beater

The introduction of the Alfa Romeo Giulia as a BMW challenger is a claim that historically has meant that it will not be as good as a BMW. Mercedes, Audi, Lexus, Infiniti, Cadillac, and a few others have tried to loosen BMW's grip on the sports sedan market with little success. It was BMW that was doing the copying when in the early sixties they looked to Alfa Romeo's sport sedans for inspiration. Alfa Romeo's pre-war racing pedigree was second to none, and series production Alfas were sporting twin cam engines, and fuel injection years before BMW. What the post-war Alfa cars did not offer was reliability and an North American dealer network that knew how to service or sell their products. Consequently in 1995 Alfa abandoned the US market. Now it is the Alfa Giulia taking aim at the BMW 3-series. The Fiat/Chrysler group has a lot of resources (think Ferrari), and the engineering chops to beat BMW at its own game, but it will take a long time to build a reliable dealer network, not to mention the quality issues that have dogged them for decades. Alfa will follow what has become a familiar recipe to challenge the 3-series. With 3 sets of trim available, the most affordable model, the Giulia, and further upscale, Giulia ti, both with a turbocharged 4-banger and 276 HP compares favorably with the BMW 328i and the Audi A4. The 505 HP Giulia flagship is shooting for the M4/3. Good luck with that, Alfa. A delayed introduction hints of troubles to come. Unfortunately for Alfa both the Audi A4 and BMW 3-series have millions of dedicated fans, most of whom do not have to be reminded about their automobile's pedigree. Millennial have never had the chance to aspire for an Alfa, and the older generations that still remember them are only a very small share of the market. Alfa has to avoid joining the automotive graveyard of models that have tried to attain BMW's status. Just to be cruel I will mention the Cadillac Cimarron. If you are too young to remember, it was the cheapest Chevy front wheel drive platform with a Cadillac badge. Panned by both GM management and the automotive press, it was a spectacular flop. I hope that the executives of the Fiat/Chrysler group remember it well. We do not need a Fiat in a stylish suit.

Stellantis ready to kill brands and fix U.S. problems, CEO Tavares says

  MILAN — Stellantis is taking steps to fix weak margins and high inventory at its U.S. operations and will not hesitate to axe underperforming brands in its sprawling portfolio, its chief executive Carlos Tavares said on Thursday. The warning for lossmaking brands is a turnaround for Tavares, who has maintained since Stellantis was created in 2021 from the merger of Italian-American automaker Fiat Chrysler and France's PSA that all of its 14 brands including Maserati, Fiat, Peugeot and Jeep have a future. "If they don't make money, we'll shut them down," Carlos Tavares told reporters after the world's No. 4 automaker delivered worse-than-expected first-half results, sending its shares down as much as 10%. "We cannot afford to have brands that do not make money." The automaker now also considers China's Leapmotor as its 15th brand, after it agreed to a broad cooperation with the group. Stellantis does not release figures for individual brands, except for Maserati which reported an 82 million euro adjusted operating loss in the first half. Some analysts say Maserati could possibly be a target for a sale by Stellantis, while other brands such as Lancia or DS might be at risk of being scrapped given their marginal contribution to the group's overall sales. Stellantis' Milan-listed shares were down as much as 12.5% on Thursday, hitting their lowest since August 2023. That brings the loss for the year so far to 22%, making them the worst performer among the major European automakers. Few automotive brands have been killed off since General Motors ditched the unprofitable Saturn and Pontiac during a U.S. government-led bankruptcy in the global financial crisis in 2008. Tavares is under pressure to revive flagging margins and sales and cut inventory in the United States as Stellantis bets on the launch of 20 new models this year which it hopes will boost profitability. Recent poor results from global carmakers have heightened worries about a weakening outlook for sales across major markets such as the U.S., whilst they also juggle an expensive transition to electric vehicles and growing competition from cheaper Chinese rivals. Japan's Nissan Motor saw first-quarter profit almost completely wiped out on Thursday and slashed its annual outlook, as deep discounting in the United States shredded its margins. Tavares said he would be working through the summer with his U.S. team on how to improve performance and cut inventory.

NHTSA, IIHS, and 20 automakers to make auto braking standard by 2022

The National Highway Traffic Safety Administration, the Insurance Institute for Highway Safety and virtually every automaker in the US domestic market have announced a pact to make automatic emergency braking standard by 2022. Here's the full rundown of companies involved: BMW, Fiat Chrysler Automobiles, Ford, General Motors, Honda, Hyundai, Jaguar Land Rover, Kia, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Subaru, Tesla, Toyota, Volkswagen, and Volvo (not to mention the brands that fall under each automaker's respective umbrella). Like we reported yesterday, AEB will be as ubiquitous in the future as traction and stability control are today. But the thing to note here is that this is not a governmental mandate. It's truly an agreement between automakers and the government, a fact that NHTSA claims will lead to widespread adoption three years sooner than a formal rule. That fact in itself should prevent up to 28,000 crashes and 12,000 injuries. The agreement will come into effect in two waves. For the majority of vehicles on the road – those with gross vehicle weights below 8,500 pounds – AEB will need to be standard equipment by September 1, 2022. Vehicles between 8,501 and 10,000 pounds will have an extra three years to offer AEB. "It's an exciting time for vehicle safety. By proactively making emergency braking systems standard equipment on their vehicles, these 20 automakers will help prevent thousands of crashes and save lives," said Secretary of Transportation Anthony Foxx said in an official statement. "It's a win for safety and a win for consumers." Read on for the official press release from NHTSA. Related Video: U.S. DOT and IIHS announce historic commitment of 20 automakers to make automatic emergency braking standard on new vehicles McLEAN, Va. – The U.S. Department of Transportation's National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety announced today a historic commitment by 20 automakers representing more than 99 percent of the U.S. auto market to make automatic emergency braking a standard feature on virtually all new cars no later than NHTSA's 2022 reporting year, which begins Sept 1, 2022. Automakers making the commitment are Audi, BMW, FCA US LLC, Ford, General Motors, Honda, Hyundai, Jaguar Land Rover, Kia, Maserati, Mazda, Mercedes-Benz, Mitsubishi Motors, Nissan, Porsche, Subaru, Tesla Motors Inc., Toyota, Volkswagen and Volvo Car USA.