Re: alfa-digest V7 #998

[Pottree@domain.elided]

In a message dated 08/26/1999 6:51:25 AM Pacific Daylight Time, 
owner-alfa-digest@domain.elided writes:

<< [Walter da Silva] gave us many reasons why Alfa would not
 be coming back to the US. All of the reasons seem rational and made good
 business sense. In the end he finally gave what I thought was the best
 reason of all. He simply stated that there are "EASIER WAYS TO LOOSE
 MONEY". He was probably right.  >>

Maybe, maybe not.

Apparently, FIAT is convinced, based on past performance, that trying to 
peddle Alfas in N. America is bound to be a money-losing proposition.  It 
doesn't matter whether this is true or not; if they believe it is true they 
will act on their belief.

This is just the same thing as American believing Alfas are finicky and 
excessively costly to maintain and will leave you stranded more times than 
not.  It doesn't matter whether or not this is true, only that if enough 
people believe it and act on the notion that the cars will not budge in the 
market.

And it's also the same as the tens of thousands of folks who believe they are 
safer in an SUV than in a car, despite all the recent evidence to the 
contrary, or the people acting perhaps on "wisdom" from an earlier age that 
convinces them a Cadillac is somehow a "better" car than a Plymouth.

People (and even businesses) act on perception and belief, not necessarily on 
truth.  That is why it would be more costly for Alfa to advertise their 
products effectively in the US than to make them in the first place, and my 
perception and belief is that this will never fly in FIAT's board rooms.

BTW, Ian, the situation you describe in the UK is not so different here: at 
least in CA, the majority of new automobiles are leased, not purchased 
outright, and so the most "leasable" (predicted to have the highest retained 
value at the term of the lease) are the market leaders: Camay, Accord, MB, 
and minivans, the blander (e.g., least likely to offend buyers in the used 
market) the better.  I believe this extends even to aspects such as color, 
type of upholstery, and additional equipment, where # 1 on the hit parade 
with a bullet would be automatic transmission.

Charlie
AROSC

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