Alfa Romeo price down by 80 percent?

19-11-2010  Teddy
With his declarations Sergio Marchionne reduced the price of Alfa Romeo by 80 percent during two months.
News >> 2010  

At the Paris motor show Marchionne stated that in case of selling Alfa Romeo, its price would not be under 100 billion euros. However the CEO changed this rate to 20 billion euros last week in Los Angeles.

An article of Automotive News speculates that current value of Alfa Romeo is 10 percent of Marchionne's last figure, 2 billion euros, which can be a reality resuming his activity of price-reduction. By the way, that would be affordable in the present market situation.

Fiat must consider that Alfa Romeo requires a 1.5-billion-euro investment and its profit is not sure until 2013. The loss of the brand is between 300 million and 500 million euros a year. Selling Alfa Romeo, Fiat could save the cost of that 1.5-billion-euro investment and the annual millions of loss, while getting a great amount of cash. It is an important aspect, that is why Marchionne emphasised the cumulation of cash by manufacturers.

As Automotive News claims, Fiat could make a profit of 4,5 billion euros selling Alfa Romeo. This suggests profit-centered Marchionne to consider.

Translated by Ferenc Pozsonyi

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