Fiat Promotes Alfredo Altavilla to Take Over Europe Region

Not many people would envy Alfredo Altavilla for the job that he had ahead of him. The FiatFiatItaly, 1899 > present159 models
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employee has just been promoted to the head of the Europe, Middle East and Africa region and has a lot of work ahead of him. 

His major goal is to bring Fiat Europe to the breakeven point by 2016 at the latest. The company is forecasting a €700 million loss in the coming year. To do that, he will have to increase sales, lower costs and make Fiat's factories more efficient. 

Fiat's plan is to relaunch Alfa RomeoAlfa RomeoItaly, 1910 > present108 models
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with new models, change Fiat by focusing on core models, wind down Lancia and increase Italian production. 

The easiest of the bunch is LanciaLanciaItaly, 1906 > present60 models
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. The brand will only produce the YpsilonJensenUnited Kingdom, 1934 > 197512 models
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 in Italy and primarily market it there, which is easy because 80% of Lancias are sold in Italy. It will also import ChryslersChryslerUnited States of America, 1925 > present70 models
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and rebadge them as Lancias.

The next slightly harder step is reviving Alfa Romeo. It has only two models at the moment - the MitoAlfa Romeo MiToItaly, 2008 > present89 versions
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and GiuliettaAlfa Romeo Giulietta (modern)Italy, 2010 > present75 versions
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. Alfa Romeo says that it will introduce the 4C sports car in 2013, but that will not increase volume significantly. The new Alfa Romeo Spider will come in 2014. A new, Chrysler-based GiuliaAlfa Romeo Giulia Gen.2Italy, 1972 > 19762 versions
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has been rumored almost since Alfa Romeo took control in early 2009, but no news has been heard about the car in quite awhile. If Alfa Romeo is going to grow, Fiat is going to have to invest in it to get them new products.

Fiat's factories are another major problem facing Altavilla. The company made a deal with the Italian government that it would not close any factories in Italy in exchange for tax incentives. The problem is that Fiat's factories are only operating at 40% capacity. Its four Italian factories have a combined output of about 1 million cars a year, but they are only building about 400,000 cars a year. The company will begin building a new Fiat-based, JeepJeepUnited States of America, 1941 > present33 models
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in Italy to add some production, but beyond that, Fiat will have to increase interest in its cars to increase production. 

The hardest problem facing Fiat in the near future is how to structure the Fiat brand to increase sales. It is where most of the company's European sales come from. The plan is to refocus Fiat around a family of 500Fiat 500 (modern)Italy, 2007 > present240 versions
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models, the PandaFiat Panda Gen.3Italy, 2011 > present24 versions
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and the FreemontFiat FreemontItaly, 2011 > present13 versions
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crossover. These cars account for more than half of Fiat's sales. 

The 500 will be split off into its own model family, which is a process that is just beginning. The 500LFiat 500L 1.4 16V Pop StarItaly, 2012 > present5 photos
MPV and 500XL Crossover will be joined be a four-door model to replace the Punto. 

Altavilla is going to have to work incredibly hard to manage Fiat in Europe. Reviving one brand would be a hard enough task, but he is responsible for keeping two alive, while slowing down a third. The key to Fiat's future will be product. It needs new cars to build in its factories and to market to buyers whether the cars are badged as Alfa Romeos, Jeeps or Fiats. 

Source: Automotive News