Marchionne Su Automotive News

[Real]

Marchionne wants to revive Lancia

Automotive News Europe / August 08, 2005

TURIN - To accelerate performance at struggling Fiat Auto, Sergio Marchionne is pushing a plan to revamp the underperforming Italian carmaker's poorly-performing Lancia brand.

Three of the five extra new Fiat Auto models that Marchionne announced August 4 as part of his new industrial plan will be Lancias.

That shows Marchionne is serious about reigniting Lancia, which had no new products signed off for production when the Fiat Group CEO took personal charge of Fiat Auto in February. Lancia badly needs more models and it needs to expand its dealer network outside Italy. About 81 percent of all Lancias produced are sold in Italy.

The new Lancia models include:

A medium SUV to appear in 2006, derived from a sport-utility, that Suzuki will build for both Lancia and Fiat brands starting late this year in its Esztergom, Hungary plant

The third-generation Delta lower-medium hatchback, derived from the Fiat Stilo replacement. Lancia discontinued the second-generation Delta after 1999

A niche product to appear in 2007, probably a revised version of the Fulvia coupe, shown as a concept at the IAA in Frankfurt in 2003.

Lancia is Fiat Auto's smallest brand, with 103,629 units built in 2004, about 5.5 percent of Fiat's 1.86 million units total.

Lancia is also Fiat's most domestic brand, with 81 percent of 2004 sales in Italy, compared with 49.4 percent for Alfa Romeo and 37.8 percent for Fiat passenger cars.

"Marchionne is absolutely right in pushing for reviving Lancia. It's a very attractive brand with a great history," said Arndt Ellinghorst, head of European automotive research at Dresdner Kleinwort Wasserstein in Frankfurt.

Lancia elegance

Lancia perfectly epitomizes the kind of Italian elegance and style that makes Italian fashion and luxury brands such worldwide icons, he said.

But Adam Jonas, analyst for Morgan Stanley in London, said the strategy has potential pitfalls.

"Considering the limited reach of the Lancia brand out of Italy, to put fresh money on it is a high-risk investment," he said.

Jonas believes Marchionne may have another goal with the Lancia revival - filling unused capacity in Italy and avoiding closing more plants.

Lancia desperately needs new models.

The Musa small minivan is Lancia's newest model. It went on sale last September and sold 19,810 in the first six months of this year, according to JATO Dynamics.

After the aging Lybra lower-premium car was discontinued in May, Lancia's product range was cut to just four models: the Ypsilon entry-premium; the Musa; the Thesis medium-premium; and the Phedra large minivan.

Marchionne wants to revive Lancia with minimum extra investment, deriving its main products from mainstream Fiat models. The Ypsilon, Musa, Phedra, next Delta and the next SUV all derive from Fiats.

Former Fiat Auto CEO Giancarlo Boschetti first outlined a low cost, high-return revival plan for Lancia in 2002.

He proposed adding 20 percent to the investment required for a new Fiat brand model to derive a clearly defined Lancia model.

Deriving the Lancia Musa from the Fiat Idea cost E60 million, but the Musa sells for about 10 percent more than an equivalent Idea.

While Idea sales are declining from 35,419 to 25,525 units, down 27.9 percent from January to June, the Musa is beating Lancia's expectations.

Lancia was planning to sell 30,000 Musas in 2005, but it did better than expected and already sold 19,810 units in the first half.

Marchionne also wants to add one or two low-volume halo cars specific to Lancia to help rebuild the brand's image.

Marchionne did not give any short or medium-term production or sales target for Lancia.

Lancia sold 101,000 units in 2003 and 117,000 units in 2004.

[vespino]

lancia cresce quindi....qualcuno che fa un succo del discorso c'è?

[TONI]

la sostanza e' che quando Marchionne e' arrivato si e' trovato una gamma Lancia davvero ai minimi storici ed ha creduto nel marchio spingendo verso nuovi modelli.Parla del Suv che secondo l' articolo derivera' dal 16 della nuova Delta anch'essa derivante da 198 e ipotizza una Fulvia a bassi volumi per rinverdire i fasti del marchio.

Poi affronta il discorso del successo oltre le previsioni di Musa ,nata dalla volonta' di Boschetti che l' ha voluta stanziando il 20% degli investimenti previsti per Idea

[Real]

pero questa parte di analisi non è totalmente errata:

But Adam Jonas, analyst for Morgan Stanley in London, said the strategy has potential pitfalls.

"Considering the limited reach of the Lancia brand out of Italy, to put fresh money on it is a high-risk investment," he said.

Jonas believes Marchionne may have another goal with the Lancia revival - filling unused capacity in Italy and avoiding closing more plants.

Bisognerà valutare attentamente.

ps: ho una Lancia Ypsilon in famiglia, da me fortemente voluta per mia madre, anche se lavoro per una Casa Automobilistica estera, per cui insulti vari non sono graditi. Nel senso discutere lo auspico, però essere "insultato" subito perche pongo dei dubbi non lo troverei positivo.

Ciao

[TONI]

pero questa parte di analisi non è totalmente errata:

But Adam Jonas, analyst for Morgan Stanley in London, said the strategy has potential pitfalls.

"Considering the limited reach of the Lancia brand out of Italy, to put fresh money on it is a high-risk investment," he said.

Jonas believes Marchionne may have another goal with the Lancia revival - filling unused capacity in Italy and avoiding closing more plants.

Bisognerà valutare attentamente.

Ciao

E' una preoccupazione che hanno in molti: ha senso investire in un marchio che attualmente ha poca visibilita' internazionale ?

Secondo me e' una scommessa che si puo' vincere e l' esempio lo da proprio Audi che era un marchio pressoche' morto.Ci vuole del tempo e degli ottimi prodotti ma alla fine nessun risultato e' precluso.

E' importante pero' che prima o poi ci si decida a vedere Lancia come marchio autonomo.Non si puo' in eterno rimarchiare delle Fiat.Musa ha funzionato ma non e' una garanzia per il futuro degli altri modelli.