Alfa Romeo and Fiat slash Australian prices

News has come through today that Alfa Romeo and Fiat are slashing prices on their current vehicle range. The price adjustment is part of an sales expansion strategy for both brands following on from a recent dealership expansion.

Alfa and Fiat marketing in Australia passed over to a Fiat-owned organisation in May 2012 after being in the hands of an independent distributor for many years. Contractual obligations kept Fiat from adjusting prices until now.

Alfa Romeo price movements are as follows:

Mito

  • Mito Progression (base model 1.4 litre, auto) down $6,790 from $31,990 to $25,200
  • Mito Distinctive (manual) down by $7,890 from $34,990 to $27,100.
  • Mito Quadrifoglio Verde (manual) down by $4990 from $34,990 to $30,000

Giulitta

The big news in this price adjustment is the Alfa Romeo Giulietta now coming in under $30,000.

  • Giulietta Distinctive (manual) down by $7,640 from $36,990 to $29,350.
  • Giulietta Distinctive (auto) down by $7,640 from $38,990 to $31,350.
  • Giulietta Distinctive Diesel down by $5,740 from $40,990 to $35,250.
  • Quadrifoglio Verde down by $2840 from $41,990 to $39,150.

The Australian dollar has been pretty high for a pretty long time now. Importers have certainly made a decent profit from selling cars here and our currency will probably stay high for a few years yet.

This move from Alfa Romeo might be an interesting sign of things to come both here and abroad (and as an aside, I shouldn’t neglect to mention Fiat, with an average $5,000 cut in the price across all models of the 500 here in Australia).

For Australia, hopefully this might be a hint to other manufacturers to drop prices as well. We’ve been paying over the odds for long enough and thanks to the ease with which punters can get news on the internet, the average Aussie buyer knows it, too. That’s not good news for our local manufacturers, but it’s the truth.

The broader perspective is whether or not this is a signal of Alfa’s strategy as it re-embarks on global growth with a looming entry into the US market. Could they be coming into the US with lower prices than people thought, with the new 4C acting as the beacon to bring people in?

It’s a potential strategy that doesn’t make too much sense to me: make your flagship a true premium pocket supercar and at the same time make your bread and butter vehicles less profitable.

It’ll be interesting to see how it works out for Alfa Romeo, both here in Australia and elsewhere.

ARGuliettaInterior

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5 Comments

  1. Nice looking cars – we North Americans don’t get such cool machines shipped our way.

    The Swadeology template de jour is great today. We do get Swadeology here in our hemisphere, and today’s look is much kinder to the eyes. Classic goodness.

  2. Good move from Fiat. I hope it pays off for them, certainly has me interested enough to consult their website and contemplate visiting a dealer for the first time.

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