£330m review of marketing starts at Fiat

Fiat Auto is conducting a fundamental pan-European review of its marketing and advertising for its Alfa Romeo, Fiat and Lancia marques as part of its strategy to return to profit. It has an estimated pan-European ad budget of &£330m.

At a presentation to analysts in Turin last week, Fiat Group chief executive Sergio Marchionne criticised the business for being “engineering-driven with not enough attention paid to brand image”. He announced a management restructure that will increase the marketing bias in the company, saying that top marketers will be appointed by the beginning of September.

A spokesman in Turin says all aspects of marketing and advertising are being considered, but no decisions have yet been taken, other than that every business unit will have a dedicated marketing function.

Leo Burnett looks after Fiat’s advertising in Europe, while Red Cell holds the account for Alfa Romeo’s advertising.

Lapo Elkann, the 27-year-old grandson of the late founder Giovanni Agnelli and heir apparent, will continue to head operational marketing for the Fiat brand.

Rumours of a plan to move Alfa Romeo into the luxury car division alongside Ferrari and Maserati have been dismissed by Fiat.

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