New Giulietta at Lance Dixon

[ANG156]

For anyone interested the new Giulietta is at Lance Dixon.

Saw it yesterday and it looked really nice, way better than the pics i have seen. It seems like a good size car with nice lines and is definately something distinctive compared to other makes. Not sure how long its gonna be there, so for anyone interested, better head on down to Doncaster to have a look. 

[alfagtv100 (Biggus)]

I had to go and check it out.  Really nice and so much better in the metal.
The pricing seems pretty good to.
My only criticism involves the steering wheel on the QV.  Compared to the lovely sculptured job on the 159ti, it feels dull and cheap in hand.
The seating position (for me) was ok but not ideal as my arms were a little outstretched and my left foot lacked any room to rest between gear changes.
Otherwise, the interior was stylish and featured the usual current Alfa goodies.
Nice car.

[155 lover]

My biggest criticism of the Giulietta is the price. The top of the range Giulietta has a sale price of 22,000 pounds in the UK. At current AUD/UK conversion rates, that equates to approximately AUD$35,000. I'd really like to know why it is then that the top of the range sale price for the Giulietta here is in fact AUD$42,000 before government charges (around $47,000 after government charges), a full AUD$7,000, or 20% more than it's equivalent UK price (or AUD$12,000 more after government charges and around 30% more than the UK sale price). The difference can't be related to taxes as the UK VAT from my understanding is up around 17.5% - 20%, whereas GST is only 10% here + stamp duty which is different in various states.

Either way, i'd like to know if there is a genuine reason we are paying 20-30% more than our UK counterparts (they've also got more model variations to choose from too!). I understand the current exchange rate is higher than normal, but it has been that way for the last 6 - 12 months, so are we just being gouged by Alfa or is there a genuine cost they have to pass on, because at this stage, i'd rather wait 12-18 months until the typical Alfa depreciation sets in and i buy it for 30% off the price second hand with bugger all kms once people work out all the bugs and trade them in!

[scuzzyGTV]

Hi 155 lover, I believe it's a simple case of supply & demand, plus a bit of shipping cost too.
Could be wrong, have been before
The UK does have 3 times out population in a much smaller area too.
Shame there isn't one down in Tassie yet to check out.

[John Hanslow]

Scuzzy is on the money.

Also the exchange rate would be worked out as a Forward Exchange Contract.

Sort of an average over time based on future market expectation.   So it may be great to buy cheap DVD's set top box etc now.

But with higher value items different exchange rate pricing is used to set the price for long range planning & marketing of the product.

[ChrisGTA]

A flipside of this thread - a couple of years ago the UK was importing the HSV Clubsport re-badged as a Vauxhall VXR8. 

In the UK the VXR8 sold at the same price as the BMW 335 twin turbo (whereas in Australia the BMW is about 50% more)! 

[Victor Lee]

The Giulietta that Lance Dixon had was the 1750 TBI 235 bhp version.  I had a quick drive of the Giulietta yesterday...it's gone back to Sydney now!

You've missed one important assumption here and that you're not comparing the same apples-apples here.

Also, where'd you get the figure of GBP22,000 from?

On the www.alfaromeo.co.uk website, the 1750 TBI Giulietta is:
2010: GBP23,700 (inc VAT) + GBP795 (OTR) = GBP24,495 retail price
2011: GBP24,089.47 (inc VAT) + GBP905.53 (OTR) = GBP24,995 retail price

Each importer specs their respective cars for what they believe will sell in their market.  So what is in optional extra in one market maybe standard in another.  And that is what is happening here. 

Damon from LD advises that he's pretty sure that the car I drove is what the final spec will be.  Given that, I believe the below is what will be standard in Australian cars (but are options for UK cars).

If we use the 2011 UK retail price not including OTR:  (I use 2011 price since no Giulietta will be sold in 2010 in Australia!)

Car                     GBP24,089.47
Bose sound system          800
Rear Parking Sensors        250
Headlight Washers           200
Bi Xenon Lights               700
                        --------------
TOTAL                GBP26,039.47.   

Using the same FX rate as used previously 0.6285 =
AUD41,431 before on road costs.

The current thought pricing will be around AUD42k - AUD43k before on road costs.

Given differing FX rates used, supply/demand issues, the pricing is not all that dissimilar!

[ANG156]

Good reply Victor. Its never wise to compare overseas cars to australian delivered since our ones are finished to a much higher specification as standard. This is something i noticed in Italy 2 years ago when i saw 159's with 15/16inch wheels as standard and cloth interiors. IMO exported cars are finished to a higher spec to encourage overseas buyers and probably why my own cousin went and bought his new fiat from germany then brought it over to italy just to get the optional extras as standard. 

[alfagtv100 (Biggus)]

Everyone has covered this off well.
Factors do include;
- Currency hedging
- Trade block adjusters
- Taxes
- Freight
- Local business operational costs (wages, support costs, real estate, etc..)
- Warranties conditions and inclusions may differ across markets
- Funding of local programs (trade-in, marketing, etc..)

Also, you need to consider Alfa Romeo (and Volvo, SAAB, Chrysler, etc...) are niche players in the Australian market.  They sell low volumes of cars each year.  They need to generate sufficient margins to run a business and turn a profit.  With our relatively small, dispersed population, expecting to buy at the same price as other parts of the world is unrealistic (unfortunately).
This applies to the vast majority of imported (and often locally produced) products sold in this country.
Remember; we are the lucky country.
Do you feel lucky?

[John Hanslow]

Intelligent, knowledgeable and rhetorical.