Alfa Romeo starts life in Stellantis with a promise of growth

MILAN -- The merger of Fiat Chrysler Automobiles and PSA Group into Stellantis has brought struggling Alfa Romeo a new CEO and a promise that the new group will “find a way to help the brand grow.” 

Alfa Romeo has failed to reach growth targets in a series of turnaround plans under Fiat and FCA.

PSA veteran Jean-Philippe Imparato now takes over at Alfa Romeo after a successful run as head of the Peugeot brand.

Imparato, 54, was named to lead Peugeot in 2016. He has overseen the launch of a number of key models, including the 3008 and 5008 crossovers and the new-generation 208 and 2008, both of which have full-electric versions.

At Peugeot, he has focused on increasing prices and residual values. Imparato, whose family has some Italian origins, worked in Italy from 2008 to 2010 as CEO of the local Citroen sales company.

Alfa Romeo has been led since 2018 by Timothy Kuniskis, who moves to become head of the Dodge brand and, on an interim basis, also of Chrysler.

Stellantis CEO Carlos Tavares said on Tuesday at a news conference to introduce the new group that he recognizes “the high value for Stellantis of both the Alfa Romeo and Maserati brands.” 

“Our intention is to study how to support the profitable growth of those brands and we believe we are going to find a way to make them progress,” he said.

Tavares said the creation of Stellantis would bring production efficiencies and savings on purchasing and development, which he described as a “shield” that could make it less expensive to launch new models and carry out business plans. 

Analysts welcomed the new leadership at Alfa Romeo. 

"The appointment of Jean-Philippe Imparato to head Alfa Romeo is a clear commitment to the brand and determination to fill the group's relative void in premium brands," Philippe Houchois of Jefferies said in a note to investors.

Alfa Romeo has been the focus of multiple relaunch plans over the last 15 years, none of which has generated lasting results. Its current range has been reduced to just the Giulia midsize sedan and Stelvio midsize crossover, after production of the Giulietta compact hatchback was stopped in December.
 
Global vehicle sales from January to September declined by 39 percent to a mere 41,116 units, according to figures from JATO Dynamics. Full-year sales in Europe (EU plus EFTA countries and the UK) fell 32 percent in 2020 to 36,526 units, figures from the trade group ACEA show.

In the U.S., Alfa Romeo said deliveries increased 23 percent in the fourth quarter of 2020 to 6,093 vehicles, while full-year sales gained 2 percent to 18,586 units.

The brand has not released annual global sales figures, but according to the FIM-CISL metalworkers union, production of Giulietta, Giulia and Stelvio models at the Cassino plant, in southern Italy, declined 9 percent in 2020 to 53,422 units.

Production of a new compact crossover will start in the second half of 2021, the model was previewed by the Tonale concept displayed at the 2019 Geneva auto show. A small crossover will then be added; it will be built  in Poland using PSA's CMP architecture and could arrive in 2023.