Analysts believe Alfa Romeo’s sales goal unrealistic

by Alex

Financial analysts have started doubting if Alfa Romeo would be able to sell more than 500,000 units annually by 2014. Last year the recorded sale of the car was limited at only 102,000 units. The financial analyst cited the lack of products, global reach, and dealer network as factors that make them doubt on the sales figures. According to the internal sources, it is unconvincing that Alfa Romeo will be able to hit the target set by Sergio Marchionne CEO of the Fiat S.p.A..

It is important to note that if Alfa fails in achieving this goal, the auto division at Fiat will have a hard time of hitting yet another target that Marchionne has set for 2014. This second target set by CEO relates to achieving higher operating margin between 4.1% and 5.1% of revenues from 1.8% last year. Arndt Ellinghorst believes that fivefold growth in five years as improbable. Arndt Ellinghorst is the global head of automotive research at Credit Suisse. He reportedly said that, even if Alfa has huge potential to grow, the company seems to have set unrealistic sales targets.

Massimo Vecchio, also agrees this analysis. Massimo Vecchio heads the industry research at Mediobanca in Milan. He reportedly cited some figures projecting Alfa’s aim to sell 85,000 units in the US in 2014. The figures are an indicant of Fiat’s optimistic sales projections to boost sales in Europe from 100,000 units to over 400,000. However, he also said that he is not aware how the company will be able to persuade these many consumers away from its rivals. The company treats BMW AG, Daimler AG’s Mercedes-Benz brand and Volkswagen AG’s Audi as potential rivals to its Alfa Romeo.

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