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[alfa] New USA Alfas: Now you see them...now you don't
I still need someone to explain to me the actual "forward thinking" Fiat is
using for concentrating in Mexico, Japan, New Zealand etc and not re-entering
the
US. That is, as far as pure economics go, the costs of shipping, dealer network
etc, have got to be in some respects the same, and more in others, than it
would to re-enter the US market. Hell, it would also seem to be at least as
profitable as in the UK after having to refit for RHD. Moreover, the sales
volume in the US has to be greater than say Kuala Lampur. I know full-well what
a horrible job and associated poor decisions Fiat made as they began to circle
the bowl here in the states, but that shouldn't be a reason not to get yourself
squared away and return to the worlds largest market. All of which makes me
think that its less of a
"business decision," and more of a political/responsibility/un-holy alliance
thing. That is, no one at Fiat wants to be responsible for bombing in the US on
any return and perhaps there is a culture at Fiat that still remembers the
feeling of the tight noose around their necks. Also, there is too much
behind-the-scenes nonsense between Fiat and GM about "what the contract means"
etc etc. Leading someone whois not normally a conspiracy theorist to ponder
that perhaps Fiat wants out of the GM deal--or at least wants more control or
benefit of any return to the US than they would under the current agreement.
Some Digesters said they agree with Fiat's re-re-re-re-worked plan to delay
return until they've square-away their EU and Asia etc operations; as I said
above
though, I don't know how the South American (e.g.) can be more profitable than
the US (hell, Daewoo, Hyundai etc have started here from scratch--with crap),
especially since Fiat already has operations here: Ferrari, Maserati, New
Holland etc. Lastly, as I read it, Alfas sales were up compared with an
industry-wide stasis or downturn in the EU. So it seems that their (Alfas)
house is in order, but that the problem may just be the Fiat brand end of
things. This brings us back to the business decision many here agree with, but
frankly I don't get how holding back your ace (Alfa) to focus all your
resources on the dimwitted child (Fiat) is a good idea. If Alfa is good, run
with them, milk it. Use some of that cash to sort out Fiat. As Fiat tells it
though, they need to make less money off Alfa so they can focus on Fiat....
Okay, so its true I've been accused of being obtuse (by some people that are no
longers my friends...), but those of you that agree with Fiat can you explain a
little why? Its been awhile since I fooled around with my Wharton stuff--I
think genetics might be making my brain soft....
Adam
PS: Sorry for the Biba-like posting
--
Adam S. Doherty
Howard Hughes Medical Institute
University of Pennsylvania--School of Medicine
360 CRB
415 Curie Blvd
Philadelphia, PA 19104 USA
Phone: 215-898-7806
Fax: 215-898-8780
Email: adoherty@domain.elided
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