Alfa Romeo CEO fears European "bloodbath" in Chinese assault | GRR

Speaking to journalists during a first look at the new Junior this week, Imperato claimed that, counter to causing an issue for Alfa Romeo, the change had actually generated more interest and press coverage than even the launch of the 33 Stradale supercar last year.

The Frenchman, who was appointed Brand CEO of Alfa Romeo at the start of 2021 following a successful time turning Peugeot around in the 2010s, also passionately called for the European car industry to step up and not “just open the door” to Chinese brands, which bring their own suppliers, threatening the future of thousands of European jobs.

Clearly angry about the forced decision – which came after Italian government officials claimed calling the car Milano while building it in Poland might be illegal – also spoke about his wishes for future electric Alfa Romeos to have ranges over 700km.

Speaking of the forced name change, Imperato said: “We revealed the name on 13th December, [there was] four months for people to understand the name. I had no other solution than to follow the platform to have a car in 2024 on the road, I couldn’t find a local solution. They had four months to say something.

“They say it is criminal, I say everybody calm down, I just want to make Alfa Romeo sustainable for the future. It’s fine, I have fifty names [for Junior].”

With Alfa Romeo part way through a rescue plan that has seen the lifetime of both the Stelvio and Giulia extended and the introduction of the new Tonale, Imperato is buoyant about the future of the company. Last year it launched the ultra-limited 33 Stradale supercar and in the next three years it will launch three more cars, all of which he says will be made in Italy.

The move to build the Junior in Poland was brought about because there was no other way to use the e-CMP platform, says Imperato. The next few new cars from Alfa will be built on Stellantis’ new STLA Large and Medium platforms and in the company’s homeland.

This, says the former Peugeot boss, is a far cry from the position Alfa Romeo found itself in when he arrived: “In 2021 Alfa was losing millions, it had no plan. Tonale was going to be a diesel! [Now] We make money. Launching cars is no problem when you’re making money. I will bring STLA Large and Medium to Italy. Giulia and Stelvio will be made in Italy. Four of five cars to be made at the moment are in Italy.

“Did you want to have a problem with Capri? Monza? It’s weird. But at the end of the day it boosted the awareness of the car and within one week it will have been forgotten. The only thing I can say is calm down, back to business.”

Alfa Romeo remains steadfast in its commitment to Imperato’s goal of an all-electrified range by 2027. But that remains an incredibly bold aim. Two-and-a-half years away from that deadline the Junior is the first EV that Alfa Romeo has launched. But rather than rush to get out a series of half-cooked cars that might outrage traditional fans of Alfa Romeo, Imperato is keen to keep the focus on driving dynamics over chasing headline numbers.

“I want to be the champion of drivability.” He said. “We might not have the most power, but with our 250PS we will get to the corner first. I recommend you drive alternatives, off the line they can kill me, but in terms of what comes after, we are the best.

“That’s not enough, I want to be the best in terms of customer experience. I would like you to charge easily, no constraints, that’s the aim. When I launch the next Selvio, Giulia, I want you to see it as if it was the ICE version.”

Never one to aim low, Imperato’s next goal, after totally electrifying the Alfa Romeo line-up, is to overhaul the experience of using an EV. With many still put off by fears of range anxiety and long charging waits, Imperato tasked his team with increasing the efficiency of both EV charging and battery range year-upon-year.

Dismissing the idea of massive power figures at the expense of range he added: “I have heard about 1,500PS, that’s bonkers. I will only be at, say, 1,000PS, but I want you to charge in 15 minutes. I don’t want you to spend two hours at a charging station. I want a minimum 700 WLTP. Then each two years we have a minimum step of 20 per cent increase in efficiency. By 2030 we are totally substituting for ICE.

“If you want to reach your destination you need to spend some time waiting around the charging station. When you are driving between Torino and Roma your first obsession is not driving, it is finding the charging station. When you find it you pray it connects. Then you wait for hours.

“This is not what I want. We will increase the capacity and efficiency of batteries. We will go step-by-step. Jumps in tech and upgrades will be made step-by-step, cycle-by-cycle.”

The news of Alfa Romeo’s rapid overhaul from a classically V6-based company to a totally zero-emissions outfit has produced a lot of invective since Imperato first set out his bold vision. Since then the world has gone through a prolonged supply chain crisis and war has broken out in both Ukraine and the Middle East, affecting car production across Europe. Italy has also seen a change in government, with a populist right wing movement taking charge just as the world ponders the prospect of a second Trump administration in the USA.

For many this would lead to a slowing, or a pause, in such a fast paced change. Imperato admits that Alfa Romeo has backup plans should circumstances dictate it changes course, but remains steadfast in his belief that the approach is correct.

“My message is still the same,” he continued. “But I always have a plan B, which we will activate if regulations are not stable any more. But before changing potential powertrains we have to answer one question. What do you tell your children, parents, friends when you see 60 degrees in Sicily? What do you say to your friends when in Carlos’ vineyards we have 50 degrees in Portugal. How do I justify to my son, who is 21, my daughter, 25, if I step back at the end and just put a V6 inside, that it’s feasible in any way?”

But, Imperato has some words of reassurance for those who have loved Alfa Romeo’s recent successes. With the next generation of the Stelvio now set for reveal in 2025 and the Giulia to follow in 2026, Imperato described the design, which both he and chief designer Alejandro Mesonero-Romanos say is fully signed off already, as “una bomba” and “gorgeous”. He also had words of encouragement for those who have long wished for a Giulia estate, claiming to have designs for a “shooting brake” which could arrive depending on market conditions.

News on the long hoped for new Alfa Romeo Spider was perhaps less cheery. “I am [still] very interested in the Duetto,” cautioned Imperato. “But I cannot do that alone. You can only make it if you have a double concept, coupe and spider. I will not throw money at just a standalone spider. I have Duetto drawings ready. I will tell you next year what the intention for 2027 is.”

When asked what the biggest challenges facing Alfa Romeo are, Imperato singled out the aforementioned changes in government, wars and unstable regulations. But he saved his most stirring pleas to European governments for the issue of Chinese manufacturers entering the market.

“Each year we assess the risk management of the company,” he said. “Daily really, but each year there is a formal assessment. When you measure change since 2021 when Stellantis was created, there’s tons of things, covid, logistics, but what has changed fundamentally is the Chinese offensive. On top of everything, covid, wars, everything. At the core of the business, it’s the Chinese offensive.

“No, I have not changed the plan I drew up in 2021 in terms of launches. But I changed the target dramatically in terms of total production cost. When you see that MG is launching a car for €16,000 in Spain, you are sure they are losing tons of cash. When you see Tesla dropping margin from 18 per cent to seven, eight, when you see German competitors working -40 to 50 per cent discount to save their arse, then you have to be stiff on cost of each and every car.”

And Imperato’s concerns about the new wave of cars from Asia moves further than just the finished product. Clearly passionate about the future of the industry in Europe, he warned of an oncoming “bloodbath” of suppliers and jobs, with the potential for each percentage point of market lost to new Eastern brands taking away the yearly output of an entire factory.

This, says Imperato, has consequences far beyond factories. With 85 per cent of the cost of each car coming from external suppliers he called for more local battery manufacturing in Europe, and called OEMs “nothing” if they cannot create their own powertrains.

“It is important that batteries are made here, for protection and for sustainability,” he said. “This process is for the sustainability of Alfa Romeo. In a fragmented world we need to protect and control. We strongly believe in vertical integration. We are an OEM, we need to master both the top and the powertrain, then we master software. If we do not master the powertrain, then being an OEM we are nothing [and the] battery is part of that. Raw materials are the same.

“There are two types [of suppliers], those who know they need to move and those who are wiped off. That’s why you see companies going under each and every week and this is just the beginning of the bloodbath. They open the door and say hey welcome [to Chinese brands], but don’t think for one second they will come alone. They will come with their suppliers.

“In Europe today 12 million people live on the auto industry. Now let’s see the situation in five years. One percent of market share if the volume lost of one factory. Ten points, ten factories.

“So we change the name of Milano.”