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Buyers resent low inventories, prices over MSRP, study says
Tue, Nov 15 2022Vehicle inventory low, vehicle transaction prices high, customers fretting … welcome, J.D. Power, to the era of supply and demand. In a recently published survey from one of the auto industryÂ’s top analytical firms, findings show that customers' satisfaction with vehicle purchases in the United States this year has dipped for the first time in 10 years. The 2022 U.S. Sales Satisfaction Index (SSI) Study found that overall sales satisfaction has dropped to 786 (on a 1,000-point scale) from 789 in 2021. In that year, higher than expected trade-in values softened the effect of new vehicle price increases. But in 2022, on top of trade-in prices shrinking, many dealers elected to charge more than the ManufacturerÂ’s Suggested Retail Price, a factor that did not sit well with buyers. “When dealers charge more than MSRP, particularly with long-term loyal customers, they risk a potential long-term negative effect on customer advocacy and service business," said Chris Sutton, vice president of automotive retail at J.D. Power. Satisfaction among buyers who paid more than sticker price is 757, while satisfaction among those who paid the sticker price or less is 850, the Power report said. The lack of dealership inventory was also a customer irritant, J.D. Power found, a point that automakers and their dealers may want to consider. Many have maintained, or considered maintaining, a smaller inventory in the wake of the pandemic, keeping costs down and driving more customers toward factory orders. Regarding those consumers shopping for electric vehicles, the survey said that more than a third of them “failed to get instruction on EV charging before they left the dealership, which notably affects satisfaction.” Said Sutton, “Salespeople donÂ’t need to show gas-powered vehicle buyers how to fill their tank, but they do need to show EV buyers how to charge their vehicle.” There are positives to the Power conclusions, however, especially for Alfa Romeo dealers. The Italian brand ranked highest in customer satisfaction among premium brands with a score of 833, with Porsche a very close second (831) and Lexus (819) third. Alfa is on something of a roll these days, with its compact Tonale crossover due for release in the spring, and a new sports car in the works. Meanwhile, in PowerÂ’s “mainstream brand”” segment, Buick ranked first with a score of 825, followed by Dodge (816) and Subaru (804), all performing higher than the industry average.
2023 Alfa Romeo Giulia and Stelvio tweaked outside and in
Mon, Oct 31 2022Another Stellantis brand has hopped on the streamlining craze, this time Alfa Romeo. The Italians from Turin dropped info on what's coming to the 2023 Giulia sedan and Stelvio crossover for international markets, the best bits likely destined for our market as well. After introducing new brand hallmarks on the Tonale, the Giulia and Stelvio adopt the revised Trilobo grille and three-section full-LED headlights. You'll need look closely to see the grille differences, but there's a touch more depth and sculpting around the edges. The headlight changes are easier to spot, the "3+3" inspiration coming from the SZ and Brera, which predate the Tonale. The headlights also come with automatic high beams. Other shores that can have fancy lights get the Adaptive Matrix high beams that automatically adjust beam contours so as not to blind oncoming traffic. Yes, the National Highway Traffic Safety Administration cleared the mechanics of such lights for use in the U.S. in February of this year, but U.S. laws stipulate a lower maximum brightness than allowed in other markets. We'll see if the matrix system makes it here. The taillights don't appear to have changed, their covers have. The Giulia gets transparent glass taillight covers, the Stelvio gets smoked glass. There could be some illumination tricks front and back, too. We're used to seeing sequential turn signals in back, spy shots have shown a sequential turn signal pattern in the headlights, and Alfa says there's a "'Welcome and Goodbye' device that turns on every time the driver closes or opens the car." Every trim features a 12.3-inch digital instrument panel that comes with three themes. The Heritage theme recalls the analogue gauges on vintage Alfas, with some upside down numbers on the analogue-looking speedo, a minimalist tachometer and a digital facsimile of the old school odometer with rolling numbers. Evolved "represents the future of Alfa Romeo design," placing most information in the center, the circular areas at the edges containing sweeping needles for the speedo and tach, but no numbers in the 'dials.' Relaxed puts nearly everything in the center, putting vitals like fuel level and oil temperature at the sides. Trim levels will be reorganized into two primary levels and two options levels. The basic tiers are Super, the entry-level, and Ti.
Alfa Romeo Classiche program launched to preserve the brand's heritage
Thu, Oct 20 2022Alfa Romeo has taken a significant step to help enthusiasts conserve the cars it has built over the past 112 years. The company launched a program called Alfa Romeo Classiche that provides owners with anything from a certificate of authenticity to a full in-house restoration. One of the program's most basic services is issuing a certificate of origin. This isn't new; Alfa has offered this resource since 2016. Armed with a chassis number, owners can request a document that details a car's date of production and its original configuration inside and out. You'd be surprised at what you can discover: Years ago, I learned that the red 1966 GTV I owned at the time was originally painted gray. The second certificate Alfa Romeo can issue collectors attests to a car's authenticity. Historians working in the company's Heritage department examine a car and inspect a long list of points before deeming it authentic. Cars can be examined at the Officine Classiche in Mirafiori, near Turin in Italy, at the Stellantis & You facilities in Rome and in Palermo, or directly at the owner's house regardless of the country they live in. Finally, the Alfa Romeo Classiche program includes a maintenance and restoration service performed by the same folks who work on the cars in the brand's museum. From changing the rocker panels on a 1959 Giulietta to changing the spark plugs on a 1991 model 164, the in-house team can take on just about any task. Pricing hasn't been announced; it varies depending on the car and the scope of the work required. Alfa Romeo takes its heritage and the Classiche program seriously: Company CEO Jean-Philippe Imparato chairs the certification committee, and the people in charge of certifying a car have access to the vast archives housed in the Alfa Romeo Museum. Related video:
Stellantis announces ‘Circular Economy’ business to drive revenue, decarbonization
Tue, Oct 11 2022Stellantis has already announced its plans to reach net-zero carbon emissions by 2038. Today, the automaker has announced a new business unit to help it reach that goal while generating 2 billion euros per year in revenue by 2030. The “Circular Economy” business will help make revenue less dependent on finite, rare and ecologically problematic materials. The Circular Economy model features what Stellantis calls a “4R” strategy, comprising remanufacturing, repair, reuse and recycling. The goal is to make materials last as long as they can, reducing reliance on the acquisition of those precious new materials in the future by returning them to the business loop when theyÂ’ve reached the end of their first life. Through these processes, Stellantis says it can save up to 80% raw material and 50% energy compared to manufacturing a new part. Remanufacturing, or “reman” in Stellantis shorthand, means dismantling, cleaning and rebuilding parts to OEM spec. Nearly 12,000 remanufactured parts are available for customers to purchase. Some remanufacturing is done in-house, and some with partners and through joint ventures. Repair is pretty obvious — fixing parts to put back into vehicles. This also consists of reconditioning, to make a vehicle feel like new. Stellantis boasts 21 “e-repair” centers for repairing electric vehicle batteries. Reuse refers to parts still in good condition from end-of-life vehicles sold as-is. Stellantis says it has 4.5 million multi-brand parts in inventory. These are sold in 155 countries through the B-Parts e-commerce platform. Reuse also refers second-life options, such as using batteries outside of automotive purposes. Recycling involves dismantling parts and scraps back into raw material form that is then looped back into the manufacturing process. Stellantis says it has collected 1 million parts for recycling in the past six months. Recycling doesnÂ’t get counted in that aforementioned 2 billion euros of revenue, but it does save the company money on acquisition of raw materials. As for batteries, specifically, Stellantis expects this recycling business to ramp up after 2030, when the packs currently in service begin to reach the end of their lifecycle. Stellantis will use its new “SUSTAINera” label to denote parts that are offered as part of its Circular Economy business.
Alfa Romeo range-topping sports car confirmed for 2023 debut
Fri, Aug 19 2022Alfa Romeo's on-again, off-again range-topping sports car is back in the pipeline. Company boss Jean-Philippe Imparato confirmed that a two-door flagship is on track to make its debut in 2023 as a concept whose exterior design will draw inspiration from historic models. "You will see something in that field in terms of sportiness in the first half of 2023. We use one word to define the brand, and it's 'sportiness,'" the executive told British magazine Autocar. He's previously voiced his support for bringing back the dormant GTV and Duetto nameplates. Imparato added that the yet-unnamed model will borrow styling cues from the Tipo 33, though he didn't specify which version of the car he has in mind. Alfa raced several evolutions of the Tipo 33 from 1966 to 1977, and it sold 18 units of a Franco Scaglione-designed supercar with a mid-mounted engine called 33 Stradale (pictured) between 1967 and 1969. We're guessing it's the latter that will provide inspiration. Numerous points remain up in the air, like what will power the car. "For the moment, I have two scenarios: full ICE or full EV," he revealed to Autocar. Regardless, the model "will be very exciting, very selective, and very expensive." It sounds like production will be limited. We're about four months away from 2023, so we won't have to wait long to discover the concept that Alfa Romeo is working on. Executives have toyed with the idea of adding a sportier model to the range for several years, but they have never pulled the trigger. Imparato explained in 2021 that the brand wouldn't release another two-door car until it increased its sales in more mainstream segments of the market. What's changed since then is unclear; the Tonale unveiled in February 2022 is the only new Alfa Romeo released since. (A Dodge Hornet badge-engineered version of the Tonale was revealed this week.) Traveling further back, in 2018 former Fiat-Chrysler Automobiles (FCA) boss Sergio Marchionne announced that the 8C and GTV names would make a comeback on a pair of coupes. The former was presented as having a carbon fiber chassis and 700 horsepower thanks to a gasoline-electric hybrid powertrain built around a mid-mounted turbocharged V6. The latter was also planned as a hybrid, but it would have offered drivers 600 horsepower, and a sketch made it look like a two-door version of the Giulia sedan. Both cars were canned by 2019. Related video:
Alfa Romeo to develop a large car in the United States
Fri, Jul 29 2022MILAN — Itay's Alfa Romeo will work on a new large car in the United States to be launched in 2027, the brand's head Jean-Philippe Imparato said on Friday, adding however the group had not yet decided where to manufacture it. Imparato said the step was key to tailoring the design for overseas markets, helping Alfa Romeo to strengthen its position as an international premium brand of carmaker Stellantis. "Our offer for a large size vehicle must fit international markets, American, Chinese, European," he said during a media call, a day after parent Stellantis released first half results. Alfa Romeo is still assessing whether the new model will be an SUV or crossover bigger though it already has Stelvio with Tonale on the way, or a sedan bigger than Giulia, but it will probably not be an SUV as large as BMW's X5 or X6, Imparato said. He told Automotive News that the vehicle could be a mix of the two vehicle types, perhaps not unlike the new Toyota Crown. "We want to find the right mix," he said. "It's a decision we will take by the end of this year." Imparato said developing the car in the U.S. did not mean it would be produced in North America. "Producing in the U.S. is not something we have decided and it is something we don't want to decide now," he added. Alfa's two production sites are in Italy. Â
Alfa Romeo boss targeting Lexus reliability, cheaper future models
Tue, May 31 2022J.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.
Stellantis won't race to split electric vehicles from fossil fuel cars
Fri, May 6 2022MILAN - Stellantis is not considering splitting its electric vehicle (EV) business from its legacy combustion engine operation, its finance chief said on Thursday, as the carmaker presented above-expectation revenue data for the first quarter. Chief Financial Officer Richard Palmer told analysts he did not see huge benefits in the kind of separations pursued by rivals such as France's Renault and U.S. Ford. "We need to manage the company and the assets we have through this transition," he said. "There are benefits to having the cash flow being generated by the internal combustion business for the investments we need to make." Palmer said the group, formed by a merger last year of Fiat Chrysler and Peugeot maker PSA, was not averse to considering adjusting its structure "but we aren't anticipating any big changes." Palmer's comments came after the world's fourth largest carmaker said its net revenue rose 12% to 41.5 billion euros ($44.1 billion) in the January-March period, as strong pricing and the type of vehicles sold helped offset the impact of the semiconductor shortage on volumes. That topped analyst expectations of 36.9 billion euros, according to a Reuters poll. Milan-listed shares were up 0.5% by 1415 GMT, in line with Italy's blue-chip index. The impact of the chip crunch was evident in the decline in shipment figures which fell 12% in the quarter to 1.374 million vehicles. It was a similar story for Germany's BMW which posted higher revenues on Thursday and a decline in car sales. Riding the Recovery Stellantis, whose brands also include Citroen, Jeep and Maserati, confirmed its 2022 forecasts for a double-digit adjusted operating income margin, after 11.8% last year, and a positive cash-flow despite supply and inflationary headwinds. Morgan Stanley analysts said after the results that Stellantis had better management than many peers and benefited from its significant exposure to a stronger U.S. economy and a European recovery from the COVID-19 pandemic. They also said it was less affected by a slowing Chinese economy. Palmer said it was important for the group to maintain double-digit margins and keep delivering positive cash flows. "A 12% increase in revenue with a 12% decrease in volumes indicates a very strong performance on price and mix, which augurs well for our margin performance," he said. He said semiconductor supply problems were expected to ease this year with continued improvements in 2023.
2022 New York Auto Show Roundup | All the reveals, reviews, pictures
Fri, Apr 15 2022NEW YORK — In case you missed it, the New York Auto Show took place this year after being canceled in both 2020 and 2021 due to Covid. A lot of manufacturers showed up in force, but not everybody did. No matter, we were there, and we brought you news, photos and scoops from the floor throughout the show. All of our New York-related stories can be found at our central hub here, but if youÂ’d rather just get a small taste of everything in a quick and digestible format, keep scrolling. 2023 Kia Telluride and its new X-Pro trim Kia revealed the TellurideÂ’s first major refresh at New York, and it makes the three-row crossover a little bit more desirable without screwing up what we liked about it before. ThereÂ’s a new X-Line and X-Pro trim for someone who might want a little more off-road capability, and a number of tech improvements. Most notably, a newly-designed dash features new and bigger screens. 2023 Hyundai Palisade The TellurideÂ’s sister car from Hyundai was treated to a similar refresh. Like the Telluride, Hyundai gave the Palisade a slightly revised look, a new off-road trim (called XRT in the PalisadeÂ’s case), more tech inside and a new dash design with full-width air vents. If we had to choose, weÂ’re a little more impressed with the TellurideÂ’s refresh, as a number of us on staff actually prefer the pre-refresh Palisade styling over the new one. 2023 Jeep Wagoneer L and Grand Wagoneer L This one was inevitable. Jeep revealed the longer, roomier versions of its Wagoneer and Grand Wagoneer in New York, and theyÂ’re designated with an “L” at the end of their names. Total length grows by a foot, and the wheelbase goes up by 7 inches versus the standard Wagoneer models. Jeep has essentially allocated all this extra room to the cargo area, as it now offers a staggering 44.2 cubic-feet of space behind the third row. Besides the L, Jeep announced that its new Hurricane inline-six engine would find its first home in the Wagoneer. Efficiency gets a small boost, and power is more than sufficient at either 420 horsepower (standard output) or 510 horsepower (high-output version) from the twin-turbo I-6. Chrysler Airflow Graphite Concept The Stellantis party continues with Chrysler and its slightly revised Airflow. Re-styled for the New York market after initially debuting at CES in Las Vegas, the Airflow Concept gets new paint, changed accent colors, a slightly changed interior design and a new interpretation of the Chrysler logo.
Alfa Romeo Giulia, Stelvio to get special editions, one more refresh
Thu, Apr 14 2022Alfa Romeo has made its plans perfectly clear. It’s going EV, and that means that the Giulia and Stelvio as they exist today with powerful gasoline engines will eventually cease to exist. However, weÂ’re still a few years away from that electric future, so Alfa has a little time to play its current models out with style. We asked senior VP of Alfa Romeo Larry Dominique what we should expect from Giulia and Stelvio in between now and the switch to electric, and he was happy to give us a glimpse at whatÂ’s ahead. “So what weÂ’ve done is develop these buzz models,” Dominique tells us. “The first one is the Estrema, which weÂ’ve already announced and weÂ’re launching it with 2023 production in May. This fall, weÂ’re going to start talking about other things like a Lusso Edition and Competizione Edition and things like that.” WeÂ’ve already heard about the Estrema, but the Lusso Edition and Competizione Edition are both new. The Lusso, if Alfa remains consistent, will likely be a luxury-centered version of the Giulia and Stelvio. ItÂ’s the Competizione that has our attention. Similar to the Estrema, this model sounds like it would be directed toward enthusiasts and feature some performance upgrades. “So weÂ’re going to look at these different components, different parts, QV parts on a Veloce and things like that,” Dominique said. “Unique color combinations and unique colors.” Adding QV (Quadrifoglio) parts to non-Quadrifoglio models is a similarly enticing proposition. We can hope that it comes to pass, because this would result in some rather aggressive-looking Giulias and Stelvios that donÂ’t come with a Quadrifoglio price. Looking into the somewhat more distant future, Dominique says that the current generation Giulia and Stelvio will get one final refresh for the 2024 model year. “In 2024 model year, weÂ’re going to have a final minor change for Stelvio and Giulia,” Dominique continued. “So youÂ’re going to see some changes visually inside and outside, associated with that. And weÂ’ll continue with the buzz model strategy, even though we have the 2024 change coming at the same time.” If youÂ’re a Giulia or Stelvio fan (as we tend to be), this final refresh car is bound to be a desirable one. Instead of dwindling away without any attention, Alfa is singing its gas-powered Giulia and Stelvio out with a little love before theyÂ’re officially put out to pasture in favor of electric models.