Among the 30 or so supercars parading up the hill on the hallowed grounds of the Goodwood Festival of Speed in the U.K. last week was a relatively modest entry—a silver four-door sedan bearing the Trident marque.
It was the U.K. debut of the Maserati Ghibli—a new mid-sized luxury sedan with grand aspirations from owner Fiat—that didn’t exactly seem out of place lined up next to track stars that were far less utilitarian.
Then again, Fiat S.p.A. chief executive Sergio Marchionne has always had a flair for the dramatic.
The Ghibli aims squarely at a segment that is uncharted territory for the Italian sports car maker. At the sticker price of $65,000 (44,000 pounds), the sedan is the least expensive of Maserati’s lineup and will compete against German mid-sized stalwarts such as the Mercedes-Benz E Class, BMW 5-Series, and Audi A6.
Historically, the Germans have dominated this market with their staid, precision-engineered vehicles that exhibit class and practicality, if not sexiness. Stepping into this segment, Marchionne hopes to carve a niche for Maserati and appeal to “new money” executives who may want to stand out from the buttoned-down crowd.
The appeal is obvious. The Ghibli has Maserati’s 99-year-old racing heritage, and its flowing curves and grand-tourer stance exude Italian taste and design. Under the hood, Ferrari-supplied V-6 engines are available in 330-hp and 410-hp incarnations. As a testament to practicality, a turbo-diesel engine is also offered, first of its kind for Maserati.
A Grand Plan
Marchionne is a shrewd CEO. He led Fiat back to profitability only two years after taking the helm in 2004. He acquired a stake in a bankrupt Chrysler for essentially nothing, and has since returned the No. 3 U.S. automaker to profitability. Chrysler has actually become the cash cow for Fiat, and the European parent relies on it for its consolidated profits. Marchionne has long stated that he wanted to build Fiat into one of the world’s biggest automakers. To do that, Fiat’s current lineup must be expanded to better contend with Volkswagen and General Motors.
The Ghibli slots nicely between its Alfa Romeo brand and Maserati’s more highbrow offerings in the luxury automobile segment. The upcoming Maserati Levante SUV—based on the Jeep Grand Cherokee platform—also fills a current void by granting Fiat the ability to compete with the BMW X, Mercedes-Benz M, Porsche Cayenne and Land Rover. These maneuvers are part of Fiat’s five-year plan announced in 2010, which called for Maserati moving down-market with new product introductions.
Maserati hopes to sell 50,000 vehicles per year by 2015, including 20,000 Ghibli sedans. It’s a tall order for a carmaker, which has recently been selling less than 10,000 per year.
“While the plan is clearly ambitious, there is room in the high-end sedan segment for something different, and with the right quality and distribution network, Maserati can reach its goal,” Sanford C. Bernstein analyst Max Warburton told Bloomberg.
Targeting German automakers was probably what Fiat had in mind when it moved the Maserati marque from within Ferrari to sit under the Alfa Romeo umbrella. Maserati, combined with Alfa—which makes automobiles targeting BMW and Mercedes-Benz’s more mainstream customers—will lead Fiat’s expansion into the luxury segment.
Maserati and Alfa are also central to Fiat’s plans to return to profitability in continental Europe, which has eluded the Turino-based company for years. To achieve that, Marchionne won’t shy away from confrontations with Italian politicians. Earlier in July, Fiat urged the Italian government to reform labor laws and threatened to move production of Alfa automobiles abroad after contracts with labor unions were disputed in court.
Marchionne said earlier this month, “The only weapon we have is to get a slice of the high-end market, which we haven’t been able to tackle in the past because of laziness or inability—leaving our German friends alone. We want to disturb the idyllic environment they’ve created for themselves.”
Frank Yu is a contributor to the Epoch Times.
