A strengthening euro and weakening U.S. dollar are complicating Alfa Romeo’s planned return to the American market next year. The changing exchange rates mean that exporting European models to this country will be a considerably more expensive prospect for the Italian manufacturer.
To help keep these costs down Alfa officials are considering the prospect of building a production facility in Mexico, which would be capable of supplying the U.S. with car’s like the upcoming Mi.To hatchback, as well as Alfa’s 149 and 159 models.
Fiat executive Sergio Marchionne recently spoke with Financial Times about North American production for subsidiary Alfa saying, “I’ve always had the view that we had to produce in America.” Marchionne went on to reveal that Alfa is hunting for a U.S. production partner, noting that the company is likely to lose money in North America until such a relationship is formed.
“I can suffer the loss initially, as long as I know I’m going to be producing enough,” said Marchionne.
+ Motor Authority: Fiat in talks with Detroit 3 over Alfa Romeo production
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That sounds like a good idea. In fact, it could set up shop in one of the big 3’s unused factories. And if it needs a partner, why not invite Tata? I understand they want to sell the Xenon pickup here, and Fiat is partners with Tata, so they can make it a joint operation.
I think GM is getting ready to close the Spring Hill Saturn plant. If they took over that plant, they would be getting a relatively new facility as opposed to some of the older facilities in other parts of the country that are closing.
I agree with using an otherwise idle or closed plant. It seems to me the perfect solution to GM or Ford’s problems, though the tooling costs might offset any cost benefit. Hopefully we’ll get that snazzy looking hatch here. 
Sounds great on paper - “Hey Fiat, GM will sell you a great factory! Hardly used, and fully staffed with trained and competant United Auto Workers! … oh wait, you were looking for ‘cost efficiency’? Sorry, we don’t know anything about that.”
I used to live near Spring Hill. That plant helped transform Middle Tennessee into a major commercial center in the Southeast. I even toured the plant when I was twelve. Saturn played a big part in the area beyond just commerce. There was genuine excitement about a Saturn SUV when I was in middle school. (That enthusiasm was misplaced in hindsight.)
My mother didn’t bother with the hyped-over VUE; she went with an L300. And that little sedan was a dependable car I wish I had appreciated more. She offered it to me when I turned sixteen for $8,000. I said “No” quicker than a commercial break on American Idol.
I can’t get excited about Alfas coming Stateside. Alfas are considered less-reliable and poorer-built Audis in Europe. Both are front-drive (with all-wheel-drive options), priced up-market, and boast if diesel offerings. Also, I doubt I’ll be able to grab a Brera hatch for the price I’d like. Y’know–free. Maybe that’s because I used to drive an Alfa.
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