FIAT Chrysler Automobiles (FCA) Australia has revealed that from next year it will begin restructuring its Alfa Romeo dealer network and move towards a fully standalone retail presence across Australia.

A new national dealer network for Alfa Romeo will be officially appointed next year as FCA Australia works to separate the Italian brand from sibling marques and boost its premium appeal.

Under the new strategy, Fiat, Jeep, Chrysler and Dodge will continue in their current premises while Alfa reinvents itself as a brand to do battle with the likes of Audi, BMW, Mercedes-Benz and Jaguar.

Speaking exclusively to GoAuto, FCA Australia corporate communications director Lucy McLellan said the project was a milestone for Alfa Romeo Down Under.

“It’s the dawn of a new era for Alfa Romeo,” she said. “FCA is currently in the process of restructuring the dealer network to re-establish itself as a prestige dealer network, operating in 2017 onwards.”

By 2020, the Alfa Romeo network will extend to at least one Alfa-only dealership in each capital city, except Darwin, with the first on track to throw open its doors in 2018.

FCA Australia network development director Mark Bradshaw explained that there were no plans for regional dealerships, but each capital city (except Darwin) would get at least one, with the possibility of several for Melbourne, Sydney and Brisbane.

A network of service centres will be established for customers outside of metropolitan areas.

“We’re looking for a metropolitan-based network,” he said. “The dealer points within them are going to be strategically located to ensure we have coverage throughout those markets (states).

“We’re talking Perth, Adelaide, Melbourne, Sydney, Brisbane, Gold Coast, Canberra and Hobart. Apart from the main south eastern seaboard capital cities, all of them will house an exclusive Alfa Romeo retail space.”

“Alfa Romeo is going to have a really prestige presence in the marketplace. Our retail space will be very big on heritage.”

Mr Bradshaw said that the strategy had been carefully planned over many months and that the interest from both existing FCA Australia franchisees and potential new ones had been strong.

“This is something that’s been in the melting pot for 12 months. We’ve been to each of our Fiat and Alfa Romeo dealers and had one-on-one discussions with them outlining our plans and timeline under which we would be implementing this new structure,” he said.

“While it’s not for everyone, a vast majority, especially the metropolitan dealers, have expressed significant interest. They understand the value of the brand.

“In every market that we are looking for dealers, we’ve already got at least double the number of expressions of interest.”

Interested dealers are being evaluated on their experience with premium and prestige brands, and while Ms McLellan did not confirm who had been signed, GoAuto understands one of Melbourne’s premier prestige chains is an early adopter, with a separate Alfa Romeo dealership potentially sitting comfortably among its other high-end Italian marques.

“Most dealers will be used to it and they are not new to strict corporate identity guidelines,” she said. “In order to re-establish ourselves as a premium brand we have to behave as such.”

Ms McLellan explained that it was hard to predict the effect of the new network on Alfa Romeo sales at this stage but dealers were being reassured of the future line-up rather than being asked to make “a significant investment” in blind faith.

“It’s hard to comment on at the moment because we’ve only announced one new vehicle, but those dealers that are interested will be given a prospectus. We won’t be able to see the full benefit until we have a full showroom,” she said.

“We’ve got significant expressions of interest; 2017 we see as a transition year. While there will be an official dealer network appointed, from an investment perspective we don’t expect to see it fully in swing until 2018.”

The Alfa Romeo line-up currently extends to just two models – the Giulietta small hatchback and exclusive 4C lightweight sportscar, but by the time the new dealership network launches, the portfolio will include the Giulia sedan that is set to arrive early next year, while the related SUV – likely to be dubbed Stelvio – is expected to join it as well.

The transition to a more desirable brand is similar to the company’s reintroduction in the United States and Mr Bradshaw said the format of the new dealerships is being led by Alfa’s Italian headquarters.

“Each region throughout the world has been given a bit of flexibility, but in the main, they have all been informed that the Alfa Romeo brand must be split from Fiat, and that it is going upmarket and back to its roots as a performance brand,” he said.

Current dealerships will carry on trading with business as usual and Mr Bradshaw explained that the removal of the Alfa Romeo brand from showrooms could help the cause of the remaining brands by giving them more room to breathe.

“For 90 per cent of the dealers Fiat and CJD (Chrysler Jeep Dodge) there will be no change. If anything there will be more of an incorporation of Fiat into the showroom,” he said.

Where the current arrangement has to accommodate the range of Jeep SUVs, Fiat passenger cars, Chrysler and Dodge models which span a number of segments and price points, the dedicated Alfa Romeo outlets will “be a truly premium Italian retail space” and a “world-class experience”, according to the car-maker.

By Daniel Gardner