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Sat, Oct 10, 2009
The Business Times
Alfa Romeo heads into Leng Kee showroom

By Samuel Ee

ALFA Romeo has opened a showroom in the Leng Kee motor belt to rev up sales.

Since 2004, authorised distributor EuroAutomobile had been in Teban Gardens Crescent beside the Ayer Rajah Expressway. But on Tuesday, the quintessential Italian marque officially opened a second showroom at 11 Leng Kee Road.

"We want a bigger market share and this new showroom in the premier motor belt will give us the exposure," said managing director Melvin Goh.

The site of the new showroom used to be occupied by Citroen, which has relocated to Cycle & Carriage's flagship building in Alexandra Road.

Mr Goh, who also distributes Lamborghini and Lotus, said that the new location will mean more walk-in customers, who will be able to view new Alfa models such as the MiTo, which starts at $82,800, and the competitively priced 159 at $98,800.

EuroAutomobile is on target to hit sales of 160 Alfas this year, or double last year's 74 units. The turnaround came after Alfa was given factory support to reposition itself here earlier this year to compete against other European brands such as Volkswagen.

The increase in local volume mirrors that in Alfa's global sales. Salvatore Ferrari, Alfa Romeo Automobiles' director of sales for regions outside Europe, said that sales are higher in a shrinking market.

"At the end of August, our sales were 8.8 per cent higher compared with 2008," he said. "We think we will close the year even better at 11 per cent. We are growing in a market that is decreasing. It is a good result."

In the first eight months of 2009, Alfa Romeo sold 120,000 cars worldwide.

Mr Ferrari, who was in Singapore for the opening of the new showroom, said that Alfa's global market share is 0.8 per cent.

"This is the average," he explained. "In some countries like Italy, for example, the market share is 2.8 per cent."

The aim in Singapore is to achieve 0.8 per cent market share, in line with the global average, he said. "This is the reference point. But we also understand that in Singapore, there is some weakness in our range, so this could be a medium to long-term result."

For one thing, Mr Ferrari said that he accepts that "an automatic gearbox is an absolute necessity in this market". "In future, we will be more active in this sector but at the moment, it not so easy to reach 0.8 per cent," he said.

One product due here soon is the MiTo Multiair with a six-speed double-clutch gearbox and start-stop feature. With this and other new models, EuroAutomobile is forecasting sales of 230 Alfas in 2010.

It helps that today's Alfa Romeo emphasises a slightly different image. Mr Ferrari said that traditionally, Alfa Romeo was known for its sportiness. But the sporty aspect related exclusively to speed and performance.

Today, Alfa is more about living life in a sporty way, he said. "It is not linked only to speed but with lifestyle, based on our history and important sporting victories.

"It is clear that our cars are still characterised by good performance, but also fuel consumption and emissions. It is a modern approach for the Alfa Romeo image."

This article was first published in The Business Times.

 

 
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