Alfa Romeo Names New Junior Compact Model "Mi To"

Mi To "Will Be the First Spark in Alfa's Recovery"

Alfa Romeo launched the "Mi To" premium B-segment (subcompact) contender earlier this week, at the same time placing high expectations on the model, aiming to sell 70,000 to 75,000 units per annum worldwide in its first full sales year 2009. Alfa Romeo's head Luca De Meo said that if the Mi To reaches its target, it "will be the first spark in Alfa's recovery." De Meo is charged with Alfa's resurgence and has been set an ambitious target of capturing 300,000 units globally by 2010, widely seen as the kind of volumes required for Alfa Romeo to return to profitability and survive in the long term.

However, Alfa Romeo's ambitions have been on hold thus far this year as the company shut its main plant in Pomigliano d'Arco in January and February for a 70-million-euro upgrade, only reopening this month after retraining the entire staff in Alfa's new "World Class Manufacturing" system, aimed at emulating the Toyota Production System. Whilst the operation was needed to improve quality and productivity, it is hardly the start Alfa needed and has lost it an estimated 40 million euro in lost revenue. However, if Alfa is to rid itself of the spectre of poor build quality, something radical has to happen. Despite promises of improvement, the fact remains that Alfa languishes at the bottom of many consumer surveys on build quality and customer satisfaction. Revamping the production line is just the start; overhauling the substandard dealer network must now rank highly.

The launch of the Mi To will not be affected by the plant refurbishment as it is based on the Fiat Grande Punto 199 platform, and will be built in Fiat's Mirafiori plant in Turin. Mi To also marks the first truly sporting compact hatchback Alfa has made since the AlfaSud, and although is technically a segment below where the Sud competed (C1 segment), and the later the Alfa 33, the Mi To has been likened to the hugely likeable, if flawed, AlfaSud which first appeared in the 1970s. Mi To has been chosen over the "Junior" nomenclature used for the concept, and is derived the Italian licence plate identification letters for the cities of Milan (MI) and Turin (TO), referring to Milan, where the model was styled at Alfa Romeo's Styling Centre in Arese, and Turin where it will be built. Mito also means myth in Italian. The Mi To will be sold as a three-door hatchback only and will be built alongside the Grande Punto at Mirafiori.

The Mi To will be offered initially with turbo gasoline (petro) and diesel powertrains, with outputs ranging from 90hp to 155hp, although Alfa will add further higher output engine options in the future, including adding a GTA model featuring a 1.8-litre turbo with gasoline direct injection rated at more than 200hp. The Mi To will also feature "Alfa DNA" which will tune the engine, brakes, steering, suspension and gearbox settings to one of three pre-set conditions: city, sporting and slippery surfaces. Alfa has engineered the Mi To to comply with U.S. safety and emission standards, and may be part of a return to the North American market next year; Alfa has been absent from North America for 14 years. Alfa has hinted at expectations of selling 15,000 to 20,000 units in the North American market, but this is far from a break-even figure and a product hit like the Mi To could indeed spark a revival for Alfa, as at Mini. The Mi To will go on sale in July with prices starting at 16,000 euro in Italy, and other major left-hand-drive markets through the year.

Alfa Romeo is targeting BMW's hugely successful Mini with the Mi To and its aggressive design language has overtones and influences from Alfa's limited-edition 8C Competizione supercar. There is no doubting the car is a handsome beast, and initial impression from the fine detailing and up market interior should give Mini something to be concerned about, particularly as it undercuts the British icon by 1,550 euro in Italy at the entry-level model on the initial guide price.

Outlook and Implications

Alfa Romeo has yet again produced a very handsome and well executed design, carrying hints over from the 8C Competizione, with is well rounded surfaces and swooping ground level nose and grille. The styling influences of the Mi To are rumoured to form a new Alfa design language, which will roll out across the range of upcoming models due in the next two years. If Alfa does adopt these cues successfully, then it will have moved the game on even further in creating a range of handsome, stylish, contemporary designs that retain classic proportions and subtle retro hints coupled to neat design touches that make the German and French offerings look and feel cumbersome and crude in comparison.

The rather bizarrely named Mi To relaunches Alfa into the compact sporting compact arena and is widely viewed as the spiritual successor to the AlfaSud. Indeed, at 4.06 metres long, the Mi To is longer by 12 cm than the Sud, and is the largest supermini on the market, although its proportions merely underscore the fact that modern cars have largely become bloated and overweight as increasing safety legislation and consumer comfort dictates. Also the Sud was actually a saloon at launch, not becoming a hatchback until the unsuccessful 1980 facelift, but facts notwithstanding, the Mi To is likened to the hugely likeable though ultimately flawed AlfaSud, in a way the 147, its direct segment successor, never has been.

Still, Alfa's new baby faces some stiff opposition and huge challenges if it is to set Alfa on the road to profitability, and on its way to the hugely ambitious target of 300,000 units pa by 2010. The Alfa is pitched squarely at the premium hatchback supermini segment dominated by BMW's Mini. Alfa's sales target of 70-75,000 units pa seems entirely realistic based on the appeal of the new car. However, where it will capture those units is less obvious, as competition in the premium B segment increases as Audi joins the fray with the A1 shortly, and non-premium brands are improving their quality and performance. The new Audi will no doubt embody the traditional values of the brand, such as the high quality interiors, a cute, well executed design and importantly, along with Mini, a dealer network that supports its premium status. Also, Ford is launching its new Fiesta, whose universally acclaimed design and improving quality has moved expectations upward again for the mass market, non-premium B segment up several notches, as it must compete with the highly competent Opel Corsa and popular French offerings.

Alfa and Fiat have proven with the Mi To and the 500 that they can pull the design side off, but are still let down significantly by lingering build quality doubts and a dealer network struggling to catch up with the reinvention of Fiat/Alfa Romeo. It is in the plush Audi and funky Mini showrooms, not to mention the efficient Ford showrooms that Alfa's future may be determined, and not for want of a decent product.

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