Chrysler could be key to Alfa Romeo’s future

Incredible as it may seem, the alliance between Chrysler and Fiat may be the salvation of the legendary, but unprofitable, Alfa Romeo.

Sergio Marchionne, CEO of both Chrysler and Fiat, which owns the Turin-based automaker, has ordered a strategic review that could either lead to Fiat shutting off further investments in Alfa or using Chrysler platforms to replace the current Alfa 159 sedan and station wagon and the 166, which has been dropped from the lineup.

Despite stunning styling that draws rave reviews, Alfa has been losing between 200 and 400 million euros each year for the past decade and last year’s sales were just over half what they were in 2000. Marchionne is now considering if it is worthwhile to invest in new Alfa development after the new Giulietta replaces the 147 next year. While the larger Alfas are slumping, Marchionne said he is pleased with the new MiTo, which made its debut last year and the new Giulietta.

Marchionne told Automotive News Europe that he can envision of high degree of platform sharing between Chrysler and Alfa, especially in the D and E segments, but he ruled out folding Alfa into Dodge, as has been rumored.

The final decision will come early next year when Fiat presents its 2010-2014 business plan.

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