Alongside Ferrari and Maserati, Alfa Romeo represents The Fiat Group in the luxury premium segment, and as such was never intended to be a volume selling brand. Against strong competition from other luxury brands with increasingly diverse model ranges, however, Alfa has struggled to maintain even relatively modest sales projections, resulting in a shrinking market share.

Fierce competition weakens sales volume

According to the European Automobile Manufacturer’s Association (ACEA) Alfa sold just 64,415 models in 2013, representing a sales share of 0.5% of the European market. This compares with sales of 89,976 in 2012, equating to a staggering -28.4 unit decrease year-on-year.

As a result of the marque’s poor performance, The Fiat Group has consistently lowered its sales targets. The original business plan (announced in 2010) outlined a target of 500,000 units to be achieved by 2014; this target was reduced to 400,000 in 2011, and just 300,000 in 2012.

One of Alfa’s biggest concerns is its lack of products in key segments, with the three model range (Giulietta, MiTo, 4C) failing to compete with niche crossover and MPV models offered by other brands. Alfa is also long overdue a replacement for the 159 range, withdrawn in 2011 – its competitor for the BMW 3 Series, Mercedes-Benz C-Class and Audi A4 among others.

Another major issue has been Alfa’s slow response to supplying the lucrative Chinese market – a region that has afforded competitors a marked sales uplift in recent years.

The arrival of Giulietta in 2010 helped to stabalise Alfa’s plummeting sales somewhat, with some industry insiders going so far as to call the model the "saviour" of the brand. Launched on the back of a high-profile marketing campaign featuring Hollywood actress Uma Thurman, the slogan ‘without heart we are mere machines’ drew on the emotional appeal of the model which sold more than 67,000 units worldwide in 2012, and accounted for 67% of Alfa Romeo’s total sales volume.

It remains the best-selling compact car of Fiat Group in Europe, and something of a life-jacket for Alfa during the brand’s increasingly turbulent sales period.

In contrast the MiTo, the brand’s sporty, three-door luxury supermini, has struggled with stiff competition since launch in 2008, in a segment that includes Citroen DS3, Audi A1 and MINI. An estimated 28,000 units were sold in 2012, down -37% over 2011.

MiTo sales in Italy, an important market from all Alfa models, were down -43% in 2012 over 2011 figures, and sales also dropped in 16 out of 18 markets. Sales figures are expected to have fallen further when the brand’s 2013 data is published towards the end of April.

4C to spearhead return to US

Alfa Romeo’s latest model, the 4C compact supercar, will lead the Italian brand’s charge back to the US market in 2014. So said Sergio Marchionne, chief executive of the Fiat Group, at the 2013 Geneva Motor Show.

‘It's a long time since Alfa Romeo was in the market there, but there is a history in the US if you go back to films like "The Graduate", which featured the iconic Spider,’ he declared in March 2013. ‘I think we have something in the 4C that will really work in that market. It's certainly the best looking car at the Geneva Show – apart from La Ferrari.’

The mid-engined, rear-wheel-drive two-seater coupe is built by Maserati at its Modena plant in Italy, and has been available to order in Europe since September

Alfa is scheduled to reappear in North America this summer, with only the best-performing Maserati dealers receiving shipments. According to Fiat-Chrysler spokesperson Rick Deneau, the company is still deciding which Fiat retailers will participate in Alfa's re-entry in to the US market, and modest export plans of 1,000 models a year suggest a cautious, "toe-in-the-water" approach.

Designed and engineered from concept to reality in only 28 months, the production model is derived directly from the concept first seen at the 2011 Geneva Show. It features a 240bhp 1.7-litre turbocharged direct-injection petrol engine, the same unit as in the Giulietta Quadrifoglio Verde, but with added horsepower.

Alfa claims acceleration from 0-100kph in 4.5 seconds (and top speed is said to be more than 250kph), and features include Alfa’s DNA Switch – engineered to allow easy switching between different driving modes – Dynamic, Natural and All-Weather.

The 4C uses technology and material first seen in the 8C Competizione, including carbon, aluminium and rear-wheel drive, and draws its inspiration from the 8C and 6C models from the 1930s and 1940s, which featured eight and six-cylinder engines.

Global production of the 4C is limited to 3,500 units per year due to the leadtime required to engineer the carbon-fibre chassis – helping to position the model as a premium, aspirational model. Industry reception to the model has been overwhelmingly positive, and Alfa has high hopes for its success in Europe and further afield in the coming years

View from the top

Alberto Cavaggioni, head of marketing EMEA

How is Alfa Romeo's business developing now that there are signs of recovery in Europe?

Alfa is a brand that is Eurocentric, the vast majority of sales are made in Europe, so this was something that penalised us a bit. We are pushing hard in revamping the brand, launching the 4C – a clear demonstration of how Alfa wants to move forward. We are re-invigorating the MiTo and Giulietta in model year 2014 so we have renewed the range with a number of new things both interiorwise and engine-wise. Last but not least what was presented in Geneva with the new Quadrifoglio Verde was the technology of the 4C with the engine and TCT transmission brought to the Quadrifoglio Verde, then the 170hp with TCT for the Mito and the 140hp for the Mito as well with the TCT, then the 4C Spider at Geneva too.

What are the market highlights for Alfa at the moment?

We will not neglect any market.

Certainly we are an Italian brand so the most important market (by sales) is Italy, followed by France, then followed by the UK. We are pushing hard in markets where the German manufacturers produce cars. We want to move out from Italy and make sure we cover as much of the entire region as we possibly can.

Which model is Alfa's best performer?

In terms of volume the largest volume is from Giulietta, followed by the MiTo. People are excited about the 4C. It’s not a product that will sell hundreds of thousands, but it's the passion behind people that love cars and love our brands.