MILAN, Italy -- Hundreds of journalists and other invited guests are beginning to arrive here at the birthplace of the Alfa Romeo brand to see Fiat Chrysler CEO Sergio Marchionne unveil a new sedan on Wednesday.
The hoopla reflects the hope that the new Alfa Romeo will herald the beginning of the automaker's product renaissance -- especially in the U.S.
Fiat Chrysler Automobiles is planning to launch eight new products by 2018 under a $7-billion plan to take on premium German brands in the U.S. and Europe such as Audi, BMW and Mercedes-Benz.
On Wednesday, Marchionne is planning to unveil the the an all-new midsize sedan -- expected to be named Guilia -- at Alfa Romeo's museum in Milan.
The company began selling the Alfa Romeo 4C sports car in the U.S. last year, but only is producing enough to sell about 1,000 annually in the U.S.
The goal with the Guilia and the cars and SUVs that will follow is far more ambitious. Marchionne has set a goal to more than quadruple Alfa Romeo's worldwide sales from 95,000 in 2013 to more than 400,000 by 2018, with 150,000 coming in the U.S., Canada and Mexico.
Residents in Milan still remember when Alfa Romeo was based here and are excited to hear Marchionne and FCA talking about a plan to revive the brand. In fact, the Alfa Romeo's badge includes a snake and a cross, representing the two ruling families of Milan in the 11th century.
"We are looking forward to having Alfa Romeo back on track again," said professor Giorgio Barba Navaretti, an economist at the University of Milan. "Older Italians are really pleased to see new Italian cars coming out."
For Milan, the heart of banking, commerce and fashion in Italy, restoring Alfa Romeo to its former glory would bring back some of its pride even though the brand is now part of FCA and no longer has a presence here.
Nevertheless, Navaretti predicts the automaker will face a daunting challenge as it works to reintroduce the brand to Americans.
Max Warburton, analyst with Bernstein Research, is even more dubious about Marchionne's plan and remains unconvinced that the automaker will actually invest the amount that has been promised.
"Talk of a dramatic improvement in FCA profitability, driven by Alfa – or attributing a big value to the brand – is misguided in our view. Despite our love of Alfa's past, we're unconvinced by its future" Warburton wrote in a research note last week. "FCA looks like one of the industry's weakest players and is overvalued."
Marchionne, however, has said more than 600 engineers and technicians have been working exclusively on Alfa Romeo's product assault in a top secret research and development center near Modena, Italy, for the past two years and has vowed to restore the brand, with its deep racing heritage, to its former glory.
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