1991 Red Alfa Romeo Spider Veloce on 2040-cars

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Fiat Chrysler's Q3 profit boosted by strong North American earnings

MILAN, Italy — Fiat Chrysler Automobiles (FCA) reported a 17 percent jump in third-quarter adjusted operating profit on Tuesday, helped by a strong performance in its key North American market and improving operations in Europe and Latin America. The world's seventh-largest carmaker still makes the lion's share of its profits in North America, so improving, or at least maintaining, its margins there is a key focus. The carmaker reported an 8 percent adjusted operating profit margin in the region, up from 7.6 percent a year ago, despite a drop in sales and shipments. "FCA's profitability in North America remained strong in the quarter despite a weakening market there," a Milan-based analyst said. FCA's profitability compares with an 8.3 percent North America margin reached in the quarter by bigger U.S. rival GM , showing CEO Sergio Marchionne making progress towards his goal of closing the margin gap with GM and the company's other U.S. rival, Ford, by 2018. The company's confirmation of its full-year outlook also pushed shares higher, a trader added. The stock was up 2.8 percent by 1129 GMT, outperforming a 1 percent rise in the European auto index. FCA has been retooling some U.S. factories to boost output of sport-utility vehicles (SUVs) and trucks while ending production of some unprofitable sedans to strengthen profitability as the U.S. car market comes off its peak. The company said a drop in North America shipments due to lower fleet sales and discontinued models was partially offset by higher deliveries of Ram trucks and two models from the Alfa Romeo stable: the Stelvio sport utility vehicle and Giulia sedan. Profitability also improved in Europe, helped by sales of the Stelvio and the new Jeep Compass, and Latin America, while margins at Maserati remained strong at 13.8 percent due to strong demand for its first SUV, the Levante. In a later conference call, investors are looking for hints on the new strategy to 2022 which the company promised to unveil early next year. Chief Executive Sergio Marchionne said earlier this year that FCA would streamline its portfolio and that components businesses, including Magneti Marelli, would be separated from the group, possibly via a spin-off. While FCA confirmed its targets this year, doubts remain about its exposure to a weakening U.S. market, recall costs and potential fines over emissions after it was targeted by European and U.S.

Alfa Romeo prioritizing vehicle quality and customer satisfaction

Stellantis honcho Carlos Tavares has proved himself adroit at the turnaround. GM had lost money on its European Opel/Vauxhall unit for two decades before Tavares took the helm at Peugeot-Citroen (PSA) and bought GM's European arm. Tavares restored Opel/Vauxhall to profit in a year. Within 18 months of PSA's "merger" with Fiat-Chrysler being official, we're no longer hearing doomsday stories from some of the perpetually troubled marques under the new umbrella. All of the Italians — Alfa Romeo, Abarth, Fiat, Lancia, Maserati — say they're doing well, Alfa Romeo back in the black and planning a range that will be more accessible and more fun to own. Having established Tavares' mastery of the basics, we've yet to find out if he knows how to transform a brand, which is what all of the Italian automakers need. At Alfa Romeo, the North American heads told Automotive News that they're still establishing the foundations of a revolution. In doing so, the brand sounds more like the kind of premium automaker it's been aspiring to be since its return in 2008.  Vincent Noirbent, VP of Brand and Product Planning for Alfa Romeo on this continent, said the automaker's working a 10-year plan to place itself as Stellantis' global premium brand below Maserati's all-out luxury. We don't know how that's going to work with Lancia in Europe, but we don't get Lancia, so that potential clash is out of our jurisdiction. Autonews phrased Noirbent's message as, "Customer satisfaction and vehicle quality are arguably 'more important' to the brand than sales as it works to build momentum in the U.S." He also said it's more important to build a "sound business" built around the strengths of the brand and that doesn't rely on incentives. A Miami dealer described comments from Alfa Romeo North America boss Larry Dominque as wanting to "make the cars right first, make the [ownership] experience better, and build the value of the brand so somebody will pay an extra $100 a month." In an interview from Pebble Beach, Dominique said a luxury service experience and experiential marketing will also be involved. This will include "concierge services, pick-up and drop-off service for test drives," and when visiting a dealer, "it's the kind of thing where not only could you come in to see beautiful cars, but also do Italian cooking lessons and wine tastings." All the work will take time.

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.