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Marchionne threatens to move Alfa production out of Italy

Fiat CEO Sergio Marchionne was unsurprisingly frank when asked by reporters about potential investments in Italian manufacturing for Alfa Romeo and Maserati, giving the Italian government the ultimatum, "Italy should decide if they want [Alfa Romeo's relaunch] to happen here or not as Fiat and Chrysler have several alternatives." Them's fightin' words.
Fiat's issue with the government stems directly from its courtroom clashes with the Fiom labor union. The two are currently embroiled in proceedings over longer shifts and shorter breaks, as Fiom has so far refused to sign a new contract citing revised labor laws that it says are anti-union.
According to Bloomberg, Fiat will be spending over $2.5 billion on development of eight new Alfas and six new Maseratis, in a bid to wrest some of the luxury pie away from BMW, Mercedes-Benz and Audi. But that's only going to happen if the government is willing to play ball and make life easier on Fiat.

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.

It only took 2.5 years to create the Alfa Romeo Giulia

Automakers are capable of some remarkable things. Take Alfa Romeo, for example. A new vehicle generally takes four to five years to go from conception to production, but with the stunning new Giulia, the iconic Italian brand allegedly did it in less than three years. That's according Chief Engineer Philippe Krief, who spoke to Car about the, um, car. "You ask every carmaker: doing a car in two years, everyone will tell you it's not possible," Krief told Car. "The industry standard says four, the longest say five years, everywhere in the world. We had to do it in two and a half years. [Sergio] Marchionne said – and he's right – the only way to achieve that is to be different." Remarkably, this was done with just 11 people, handpicked by Krief. This so-called Skunkworks approach allowed for fast decision making and brainstorming, and consequently, stuff like the torque-vectoring system and active aerodynamics on the Quadrifoglio. While we love talking about Alfa's notorious Cloverleaf trim, Krief also let some details slip on additional members of the Giulia family, beyond the 510-horsepower, 3.0-liter, twin-turbocharged V6 model. We can expect to see those in a few months time, at the 2015 Frankfurt Motor Show. And yes, that could include a four-cylinder model and a diesel V6. "Probably," Krief said, when asked about a four-cylinder model. "And we are package-protected for V6 diesel, we can install it in the car and after we can decide whether to put it in or not." So there you are. While the big news remains the Quadrifoglio, Alfa is set to expand the Giulia's engine range, and it'll do so very soon. Stay tuned. Related Video: