Analysts' views

Jay Nagley, AM contributor and automotive analyst, said: “Alfa is a brand that depends on enthusiasts. I am not sure PLCs are compatible either with the cars or with the customers”.

“The big problem is Alfa models always seem to fizzle out after a couple of years. The die-hards buy an early one, but the public remains unmoved – or disillusioned. Alfa admitted in 2005 its retention rate was 22%, which was suicidal, and it said it would get to 1% of the market by 2010. It is currently running at around 0.4% share. Is a brand viable at that level unless it is Porsche?

“Ten years ago, the problem was that people did not trust Alfa. Now the problem seems to be that people have forgotten Alfa.”

Philip Nothard, CAP’s retail and consumer valuation editor, said: “Alfa dealers are either turning to second franchises to support their overheads or simply closing the doors. They are concerned that they are all forced to chase the same used car stock and because new current models are not selling in any volumes and leasing companies didn’t take many either, they run the risk of running out of cars to buy or sell.

“In the main the dealers tend to run franchise only used car sites not multi-brand, so they are especially exposed. On the positive side, dealers able to locate used stock do tend to make good returns.

“There are concerns over the future direction of a brand which has a one time great track record as a producer of sports cars and convertibles but currently offers none.”

Network landscape

Representation is likely to remain at 55, but there is scope to expand beyond that as new product comes in. Alfa has representation gaps in western Scotland and Wales and cities like Leeds, Cambridge, Oxford and Southampton.

Its highest concentration of dealerships is in the M25 area - great if you’re looking to access the wealth of London, but
difficult if you’re competing in a high cost area without new product.

Dealer groups within the AM100 have been getting out of the Alfa franchise steadily over the last 10 years. There were just over 40 groups representing the Italian brand in 2002, which dropped to below 10 as the recession hit.

Representation is now beginning to recover above that level, but it is possible large groups don’t fit with the brand.

 Product plans

-4C Coupé July 2013 : Mid-engined 250bhp coupé that will hit 0-62mph in 4.8 seconds. Prices expected to be around £40,000. 

-Giulietta facelift late 2013: New Euro VI engines and an upgraded cabin.

-Giulia saloon and sportswagon Q1 2014: A BMW 3 Series rival to help Alfa fight for D-segment sales.

-Crossover 4x4 late 2014: US-built small SUV based on the Jeep Compass platform.

-New Mito early 2015 Dealers will get a five-door version.

-Alfa Romeo Spider 2015 Based on the next-generation Mazda MX-5 it will have bespoke Alfa design and engineering. Dally doesn’t believe the fact it will be built in Hiroshima will harm the brand.