Alfa Romeo’s growth plan in the U.S. over the next decade involves doing away with internal combustion engines by 2027.
The Italian brand is laying the groundwork for this expansion now with a focus on delivering experiences to consumers that are fitting of the luxury segment.
It’s not a numbers game. Alfa says it’s thinking about much more than volume at this point in its U.S. comeback.
Customer satisfaction and vehicle quality are arguably “more important” to the brand than sales as it works to build momentum in the U.S., said Vincent Noirbent, vice president of product planning and transformation for Alfa in North America.
Noirbent said the brand has a 10-year plan in place and is financially stable. It wants to hold down the role as Stellantis’ global premium brand, he said, with Maserati as a higher-end option that won’t overlap.
Alfa’s North America leader, Larry Dominique, told Automotive News in February that the brand is chasing stability, customer satisfaction and dealer profitability.
Alfa’s dedication to boosting the customer experience is bearing fruit. It topped the J.D. Power Sales Satisfaction Index in November by moving up nine places. Its 25-point improvement was the biggest among premium brands.
“Internally, we have our processes,” Noirbent said this month. “We work closely with our network, the factory, so we know where we’re going, we know where we’re headed, we see our [key performance indicators] increasing. Now you get that sort of reward.
“I mean, that was like the greatest reward you can have as a team. Now, when you’re No. 1, there’s only one way [to go], so it is never-ending. We need to make sure that next year we repeat that. We need to make sure that we perfect our processes.”
While Alfa hones the customer experience, it’s also welcoming new product.
It’s preparing to launch the Tonale plug-in hybrid, its first electrified model, in the U.S. in the second quarter of 2023.
The brand had planned to sell the hybrid Tonale alongside a conventional gasoline version but decided instead to sell it only as a plug-in for the U.S. Noirbent said the brand thinks there’s enough demand for electrified options to support the upcoming compact utility vehicle.
“The market has moved quite dramatically also, for the past few months,” Noirbent said. “It looks like the moment is ripe for us to say, ‘Let’s go for that.’ ”
Alfa doesn’t plan to play up the Tonale’s electrified technology in its marketing. Noirbent said the plug-in capabilities are an added benefit and that the vehicle will be marketed a “true Alfa Romeo.”
Don’t expect to see discounts on the Tonale — or any Alfa product — to drive sales. Noirbent said the brand doesn’t have a “volume-driven strategy” and has pulled back on incentives. He said it would rather have a “sound business” than supercharge sales numbers with artificial sweeteners.
Greg Travaline, who owns South Miami Alfa Romeo-Fiat, said Dominique has centered his attention on raising the brand image so consumers are willing to pay more. Vehicle quality is a point of emphasis, he said.
Dominique wants to “make the cars right first, make the experience better and build the value of the brand, so somebody will pay an extra $100 a month,” Travaline told Automotive News. “We have lagged on sales, but we hope eventually it’s going to turn full circle. We’ve got Tonale coming out. The future of Alfa — hopefully from there, it’s going to be bright.”