Marchionne says he is open to new alliances but won’t sell Alfa Romeo

July 30, 2014 17:10 CET

MILAN — Fiat CEO Sergio Marchionne reiterated that Alfa Romeo will not be sold but said he remains open to forming alliances with other carmakers if it helped cut costs, especially in Europe where sales have been moribund for years.

“We are not in the business of brand-trading,” Marchionne told analysts Wednesday on a conference call to discuss Fiat’s second-quarter earnings.

Fiat is investing five billion euros in a bid to turn Alfa Romeo into a sought-after global premium brand with eight new models and annual sales of 400,000 by 2018, up from 74,000 last year.

Alfa’s future lineup will be underpinned by a new rear-wheel-/all-wheel-drive architecture called Giorgio.

Alfa has failed to turn a profit during Marchionne’s 10-year tenure at Fiat. In 2010, Volkswagen Chairman Ferdinand Piech offered to buy the marque, which Fiat acquired in 1986.

Marchionne has repeatedly rejected the idea, regardless of the buyer. “We are committed (to Alfa Romeo),” he told the conference call.

Go here for the complete story: