Alfa Romeo overhaul stalls due to Fiat-Chrysler buyout

[conaero]

The overhaul of Alfa Romeo has stalled as Fiat boss Sergio Marchionne turns his attention to completing Fiat's buyout of Chrysler.

These spy shots show a mule of the planned Alfa SUV heading for Fiat's Balocco proving ground in northern Italy. That this prototype is no more advanced than the one spotted by Autocar in Los Angeles 12 months ago shows that Alfa's mainstream models are effectively on hold.

Autocar understands that the only new Alfa currently progressing is the Mazda MX-5-based roadster. The Alfa SUV is now unlikely to appear before 2015, a delay which also holds up a planned sister SUV from Jeep. There's no news either on the planned Fiat 500X and its related ‘baby Jeep' model.

Analysts say Marchionne cannot fully execute his plans to create a premium car-making division from Jeep, Alfa and Maserati without access to Chrysler's cash reserves, but Marchionne has failed to hammer out a deal with Chrysler's co-owners.

Fiat currently owns 58.5 per cent of Chrysler. The balance of 41.5 per cent is held by the United Auto Workers Retiree Medical Benefits Trust, a holding acquired as a consequence of GM's bankruptcy and government bailout.

The UAW wants to maximise its investment to provide funds for retiree pensions and healthcare costs. It covers ex-Ford, GM and Chrylser workers and has 860,000 people on its books.

However, Fiat and the UAW fund have failed to broker a deal after the Union valued its holding at around £3.1bn, which is perhaps understandable considering the Trust's responsibilities.

Last week, Marchionne said talks had failed and he wanted to see the initial public offering executed by the year's end. One advantage for Fiat is that the move will establish market price for the shares. However, Fiat will have to ensure it ends up as the majority owner of the UAW's stake or the merger, which is essential to the health of Fiat, will fail.

Analysts say Marchionne might eventually have to borrow as much as £2.5bn to complete the buyout and finally invest in the much-delayed Alfa-Jeep-Maserati division.

Source: http://www.autocar.co.uk/car-news/industry/alfa-romeo-overhaul-stalls-due-fiat-chrysler-buyout?

 

[Shant Ole]

Weve been hearing that Alfa will get so many new models for so many years now. Personally i have stopped believing them. I dont believe at anything they say until i see the real thing. They have done a good job with the 4C going back to its roots being a RWD car and i want to see what the new Spider will be like in 2015.

I hope a new era starts for Alfa Romeo. And its better if they dont talk a lot and do more work

 

[conaero]

Agreed, if they can get some of the 4C DNA down into this new Spider it will be a winner.

Then, if they can sort the 159 sedan/sportwagon sorted they should be back on the right track.

A GTV would be the one that would interest me TBH.

 

[Shant Ole]

This whole thing with the weight saving they did on the 4C is the best thing Alfa has done for years. They should continue that on the new models too and also stop the FWD

 

[WTI]

An Alfa SUV that looks exactly like a Giulietta from the rear?

Jesus this is not looking good for future models.