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Fast, luxurious, and stylish, with a thoroughly modern platform shared with Saab, Fiat, and Lancia, the Alfa Romeo 164 could have been the hit to resuscitate Alfa's flailing business and put the company on the map in the German-dominated executive car market. Unfortunately, it was the last model Alfa developed before falling into the arms of Fiat, and it had the dubious distinction of being the last Alfa sold in the U.S.
This week, we look at the 164 and its "Type Four" siblings: the Fiat Croma, Lancia Thema, and Saab 9000.
INDUSTRIAL DISEASE
The 1970s were a difficult time for all automakers, but particularly for smaller, more upscale European brands like Jaguar and Alfa Romeo. Their modest volume made for higher per-unit costs, which in turn left them very vulnerable to inflation and market fluctuations. Some small automakers could barely survive even in healthy economic times; Italy's venerable Lancia was faced with such a mountain of debt that Fiat bought it for a pittance in 1969.
The economic conditions of the seventies, of course, were anything but healthy. Skyrocketing inflation, political unrest, and energy crises hit auto sales hard, particularly in Europe. Manufacturers responded with layoffs and wage cuts, which in turn became a casus belli for the unions, whose members were already suffering the impact of inflation. The result was a long string of contentious and occasionally violent labor disputes.
Originally known as A.L.F.A. (Anonima Lombarda Fabbrica Automobili), Alfa Romeo was founded in 1910. The "Romeo" portion of the name came from managing director Nicola Romeo, who joined the company in 1915.
Alfa's popularity was at its height in the late sixties, but its financial health had never been particularly robust. The Milanese automaker had been forced to seek government assistance in the 1930s, and since 1948, it had operated under the auspices of Finmeccanica (a contraction of Società Finanziaria Meccanica, "financial engineering company"), a government-owned industrial conglomerate. Alfa's sales, about 109,000 units in 1970, were decent, but it was still at a competitive disadvantage in an increasingly difficult marketplace.
Hoping to increase its volume while also stimulating the moribund economy of southern Italy, Alfa launched the "Alfasud" ("southern Alfa") project, a new subcompact built in a newly refurbished factory in Pomigliano d'Arco, near Naples. Unfortunately, training an inexperienced workforce to build an entirely new car -- Alfa Romeo's first front-wheel-drive model -- proved more challenging than anticipated. The Alfasud was fun to drive, but suffered grievous quality control and corrosion problems. It sold well (893,719 units between 1972 and 1984), but never in the volumes Alfa had hoped.
Introduced in 1972, the Alfasud was the prototypical "hot hatch," a practical family hatchback that could be driven with considerable gusto, despite the modest power of its DOHC flat-four engine. Sadly, early models had a horrifying propensity for rust, which did nothing for Alfa's reputation. (Photo © 2006 Hans Stedhouder of Garage de l'Est; released to the public domain by the photographer)
In 1978, Ettore Massacesi became chairman of Alfa Romeo, with Corrado Innocenti (formerly of the aviation company Aeritalia) as deputy chairman and managing director. Massacesi and Innocenti grandly proclaimed that they would restore Alfa to profitability within four years, while raising market share to 8%. The company never managed to sustain such numbers for more than brief periods, however, and it remained dangerously overcapacity. The Pomigliano factory alone had been designed to build 450,000 cars a year, but Alfa's annual volume was seldom much more than half that figure. An ill-fated joint venture with Nissan, ARNA (Alfa Romeo Nissan Autoveicoli), did little to help. The company continued to flounder, and in early 1982, Massacesi and Innocenti were forced to lay off nearly a third of the workforce.
THE SAAB-LANCIA CONNECTION
While Alfa Romeo struggled, their longtime rival, Lancia -- which, as we mentioned above, was now owned by Fiat, paired with Autobianchi -- was beginning an affair with the Swedish automaker Saab-Scania AB. Like Alfa Romeo, Saab was a brand with a great deal of character, but limited resources. The first step of the Lancia-Saab partnership was an agreement for Saab dealers in certain markets to sell the Autobianchi A112, badged as a Lancia. The two companies also pooled engineering resources in the design of the 1980 Lancia Delta, which sold in some markets as the Saab-Lancia 600.
Saab hoped to follow its new 900 with a somewhat bigger, more luxurious model that would take it into the thick of the European executive-car market. The company had done some preliminary studies for such a car, only to discover that they could not afford to develop it alone. Consultation with Lancia soon revealed that Saab's Italian partner had similar ambitions, and a common dilemma. A joint venture was the natural solution; it would allow both companies to split much of the design and engineering costs, making the new models far more economically viable.
In October 1978, Fiat and Saab signed a memo of understanding regarding the development of a new platform for a large, front-wheel-drive car, which would be built in Saab, Fiat, and Lancia versions. The platform would eventually become known as the "Tipo Quattro," or "Type Four."
TIPO QUATTRO
The first three of the Type Four cars were the Fiat Croma, the Lancia Thema, and the Saab 9000, all of which debuted in the 1985 model year. Giorgetto Giugiaro's ItalDesign created the basic design for all three cars, although each company finalized the interior and exterior details in-house, subject to Giugiaro's approval.
In some respects, the Fiat Croma was a family car in the classic American mode: big and cheap. Large for a European sedan, it was spacious and attractively priced, although with the 1.6 L (97 cu. in.) gasoline or 1.9 L (116 cu. in.) turbodiesel engines usually fitted, it was rather underpowered. Its reliability record was not impressive, either, and it is telling that when the line ended in 1996, Fiat abandoned this market segment entirely. (Photo @ 2006 Hans Stedhouder and Garage de l'Est; released to the public domain by the photographer)
The dimensions of all three cars were very similar, and they all shared the same 104.7-inch (2,660 mm) wheelbase. The Saab and Fiat initially were only available in five-door hatchback form, albeit with a traditional "three-box" profile that made them look like notchback sedans. (A true notchback version of the Saab 9000 was added later in the model run.) The Lancia Thema was offered only as a four-door sedan, in keeping with its executive-car ambitions. All had MacPherson strut front suspensions and four-wheel disc brakes, although their rear suspensions and engines were different.
The Saab 9000 was arguably the dowdiest of the Type Four cars, although by Saab standards, it was practically a beauty queen. It was less willfully quirky than the 900, and its turbocharged four-cylinder engine gave it formidable performance, but it remained a cult item in the U.S., where buyers preferred six- and eight-cylinder engines. (Photo © 2008 IFCAR; released to the public domain by the photographer)
Both Saab and Fiat admitted that the shared platform hadn't resulted in the kind of cost savings they had hoped for. Although the structure of the three cars was similar enough that doors and other components were interchangeable, the actual number of shared components was very small. Part of the reason was that they were not aimed at the same market segment. While the Thema was pitched as an executive car, the Croma was aimed at the large family car market, competing with cars like the Ford Sierra, Opel Ascona, and Vauxhall Cavalier. Saab, meanwhile, was taking aim at BMW. The Swedish company was also unwilling to compromise its traditional interest in safety, which led to some structural improvements to the 9000 relative to its Italian brethren.
The Lancia Thema was more upscale than the Croma, better equipped and fitted with more powerful engines. This 1992 model, built after Fiat's acquisition of Alfa Romeo, actually uses the Alfa 3.0 L (181 cu. in.) V6. The ultimate Thema, however, was the 8.32, which used a variation of the 2.9 L (179 cu. in.) "quattrovalvole" engine from the contemporary Ferrari 308. Rated at 212 hp (158 kW) without a catalytic converter, the 8.32 was only marginally quicker than the hottest turbocharged four-cylinder models, and Lancia's efforts to quell its torque steer sullied its steering feel. (Photo © 2008 M.J. Evers; used under a Creative Commons Attribution 3.0 unported license)
THREE INTO FOUR
Alfa Romeo engineers had been working since the end of the seventies on a new executive car to replace the big Alfetta and Alfa 6 sedans. Initially, the plan was for an all-new, rear-drive car, but with the company sinking ever further into red ink, Alfa could not afford a new platform. The Type Four platform was not exactly what Alfa wanted, but it was close enough under the circumstances. In 1982, Massacesi and Innocenti decided to sign onto the Tipo Quattro project.
The 164's model name was also its internal project code. The designation soon proved to be an inopportune choice in certain Asian markets; in Hong Kong, the number 4 was widely considered unlucky, because its Cantonese pronunciation is a homophone for death. After understandably sluggish initial sales, the local organization rebadged the car as the "168."
ENGULF AND DEVOUR, S.P.A.
As the 164 took shape, Alfa Romeo's financial problems grew worse. In October 1985, the Italian newspaper La Repubblica exposed an internal memorandum written by Ettore Massacesi that painted a grim picture of Alfa's financial health. In the memo, Massacesi frankly admitted that his goals of a financial turnaround had been based on overly optimistic assumptions. Moreover, he alluded to a contentious relationship with Finmeccanica management, which had been publicly critical of Alfa's policies.
By early 1986, Finmeccanica was looking to divest itself of Alfa Romeo. The greatest interest in the ailing automaker came from the Ford Motor Company, which signed a letter of understanding to purchase a controlling interest in Alfa Romeo over a five-year period, for a total investment of about $1.75 billion. To Ford's frustration, Finmeccanica announced that fall that Alfa would instead be sold to Fiat Group, for the same price Ford had offered. The sale, which was effective January 1, 1987, made Alfa Romeo a wholly owned subsidiary of Fiat. It was paired with Lancia in a new organization called Alfa Lancia S.p.A, chaired by Fiat Auto managing director Vittorio Ghidella.
The transition to Fiat control was not a gentle one. In a 2008 article, automotive writer Karl Ludvigsen noted that not only were the two firms traditional rivals, the cities of Milan and Turin (where Lancia was founded) had a longstanding animosity. (Ironically, Alfa's current B-segment car, designed in Milan and built in Turin, is called MiTo -- Milano Torino.)
Fiat eventually invested more than $1 billion in Alfa, but the cultural impact was severe. According to Ludvigsen, Fiat management was not interested in being gentle; they had not forgotten that the Alfasud had been a direct assault on Fiat's traditional bread-and-butter market. Not long after the merger, Ghidella told the press that Alfa's financial problems were a direct result of the company's dabbling in the compact-car market.
A GERMAN CAR WITH PERSONALITY
At the time of the Fiat acquisition, the 164 was nearly ready for introduction. Its launch was delayed by Fiat management, which cited potentially serious build-quality problems. That charge was particularly ironic, because Fiat's own Type Four car, the Croma, had a dreary repair record, and Fiat quality control had been the subject of cruel humor on both sides of the Atlantic for many years. The 164 finally made its public debut at the Frankfurt auto show in the spring of 1987. It went on sale that fall as a 1988 model, about a year and a half behind schedule.
Unlike the other Type Four cars, which were the work of Giorgetto Giugiaro, the 164 was designed by (and very publicly credited to) the venerable coachbuilder Pininfarina. Its final form apparently owes much to Alfa Romeo chief designer Enrico Fumia, but the Pininfarina name had considerable prestige value. Pininfarina subsequently irritated Alfa management by recycling many of the 164's design themes for the 1989 Peugeot 605 (which our American viewers may recall from the film Ronin). Despite the resemblance, the Peugeot was not a Type Four car; it rode the same platform as the Citroën XM.
The last of the Type Four cars, the 164 was also the most distinctive of the four. Its exterior design was a good deal more rakish than its cousins, and more aerodynamic, as well. Although spoiled somewhat by the plastic body kit applied to top-spec models, it remains one of the sharpest-looking sedans of its era. Its interior was stylish, as well, although it had a typically Italian (i.e., awkward) driving position, and its dash was adorned with a daunting array of nigh-identical buttons.
The 164 doesn't simply look sleeker than the other Type Four cars -- it has a significantly lower drag coefficient: 0.30, compared to 0.34 for the Fiat Croma and 0.32 for the Thema.
The raffish appearance was backed by ample performance. Base engine was Alfa's excellent 2.0 L (122 cu. in.) Twin Spark four, with 148 hp (109 kW) or (in turbocharged form) 175 hp (129 kW). Even the Twin Spark engines provided good performance, but the real star was the optional V6, widely acclaimed as one of the world's charismatic engines. In June 1990, Car and Driver clocked the 200-horsepower (149 kW) 164S from 0-60 mph (0-97 kph) in just under seven seconds, going on to an actual top speed of 142 mph (229 kph). Braking and handling were of a similar order, although torque steer was a serious problem with V6 models. It was tamed somewhat later in the model run, but the V6's torque remained capable of wrenching the front wheels off course if not handled with caution. Still, the 164 looked like a compelling alternative to its Teutonic rivals. In a 1993 comparison test, Performance Car's David Vivian judged it superior to both the BMW 530i and Jaguar XJ6 3.2S.
Like its Type Four cousins, the 164 rides a 104.7-inch (2,660 mm) wheelbase, and stretches 179.3 inches (4,554 mm) long overall. Not coincidentally, that is very similar to BMW's mid-eighties (E28) 5-Series sedan -- a key rival -- although the Alfa is smaller than the E34 5-Series introduced in 1988. The 164 is relatively heavy; a V6 L like this one weighs about 3,450 lb (1,565 kg).
Alfas had seldom lacked charisma, but assembly quality and reliability were another matter. Alfas were mechanically robust if properly maintained, but fit and finish was not up to German standards, let alone those of the increasingly proficient Japanese. To its credit, the 164 had some of the most extensive corrosion protection Alfa Romeo had ever offered, but its complex electronics -- including an LCD dash display and computerized automatic climate control -- could be troublesome. Its biggest maintenance headache was the need to change the timing belt every 30,000 miles (48,000 km), an expensive headache that would become more so if neglected.
THE AMERICAN PROBLEM
The 164 did not come to the U.S. until 1990, thanks mostly to the decision to overhaul Alfa's U.S. distribution system. In 1989, Fiat established ARDONA, Alfa Romeo Distributors of North America, as a joint venture with Chrysler, hoping that Chrysler's familiarity with the American market would help to increase Alfa's U.S. market penetration. Chrysler soon became frustrated with the factory's delays in introducing the new model; in 1989, Alfa dealers had nothing to sell but the dated and unreliable Milano sedan and the ancient Spyder convertible. Chrysler withdrew from ARDONA in 1991, leaving Alfa to go it alone.
The majority of 164s worldwide had Alfa's 2.0 L Twin Spark four-cylinder engine, but all U.S. models had the V6. Base and L models had a more mildly tuned version with 183 horsepower (137 kW), while the S had 200 hp (149 kW). These were later replaced by an LS model with 210 hp (152 kW) and the Quadrifoglio, which used the 24V V6 with 230 hp (168 kW).
It was an uphill battle. As BMW and Mercedes sales skyrocketed and Honda got into the luxury market with its Acura brand, Alfa Romeo had languished, selling only 8,201 cars in the 1986 model year. By 1990, U.S. sales had dropped to under 3,500. At the 164's U.S. introduction, ARDONA president Darrell Davis admitted to Car and Driver's John Phillips III that the company desperately needed at least one viable mainstream product.
Sadly, the 164 was not that product. Its most direct rivals in size and price were the Audi 100, the Acura Legend, and its own Saab 9000 cousin, but against those competitors, it came in a distant fourth. It was better looking than its foes, was equally comfortable, and had vastly more character, but it simply couldn't match their stronger dealer networks and better marketing. Moreover, buyers looking to stretch a little further in price could now opt for the Lexus LS400 or Infiniti Q45, which offered Japanese reliability and V8 power. As a result, 164 sales in America were anemic. Only 1,549 were sold stateside in 1990, 2,155 in calendar year 1991, and 1,721 for 1992.
By then, Fiat was prepared to throw in the towel. Both Fiat and Lancia had withdrawn from the U.S. in the early 1980s, and Fiat's willingness to invest more money into that unfamiliar market -- particularly on behalf of Alfa Romeo, which still suffered from redheaded-stepchild status within the corporation -- was limited. Alfa held out until 1995, but 164 sales for the combined 1993-1995 period totaled only 1,484. The U.S. would not get subsequent new Alfa models like the striking GTV or 155 sedan at all.
The U.S. S models were afflicted with tacky plastic body cladding, which may improve high-speed aerodynamics (although we are dubious), but does nothing for the shape. The S also had slightly shorter gearing to complement its more powerful engine. It was available only with manual transmission, and so accounted for only a small percentage of American sales.
DOWN, BUT NOT OUT
Even as its U.S. sales were sputtering, the 164's performance received several shots in the arm. First was a new DOHC 24-valve version of the familiar 3.0 L V6, offering up to 232 hp (171 kW) and a top speed of 152 mph (245 kph). Second was the Q4, which addressed the standard car's torque steer with all-wheel drive, mated to a new six-speed gearbox. (The Q4 was never offered in the U.S.) For markets with restrictive taxable horsepower rules, there was also a 2.0 L (122 cu. in.) turbocharged version of the V6, with 207 hp (152 kW).
None of this helped Alfa Romeo's total sales, which sank 24% for 1993. Alfa had done reasonably well just after the Fiat acquisition, reaching about 225,000 units in 1989 and 1990, but by 1993, it was down to 109,598 units -- almost where it had been back in 1970. Alfa wouldn't cross the 200,000-unit mark again until 1997, with the introduction of the 156. In recent years, it has again been struggling, although Fiat, to its credit, has made a great effort to preserve Alfa's unique character.
All 164S models had manual transmission. One of the 164's problems in the U.S. market was that the six-cylinder engine didn't mate well with the automatic transmission that most American buyers preferred. Car and Driver found that the automatic positively neutered the 164's free-revving V6; their July 1991 test of automatic 164L took nearly 10 seconds for the 0-60mph run and lost more than 10 mph (16 kph) of top speed compared to the manual 164S.
The 164 remained in production until June 1997, outliving both the Fiat Croma and Lancia Thema. Total production was 273,857 -- decent, but far less than Alfa had hoped. Significantly, it was also well below the 503,087 units ultimately sold by the Saab 9000, a sign of how much the 164 had been hurt by Alfa Romeo's tarnished reputation, limited sales network, and anemic marketing.
The 164's successor, the 166, was also a disappointment. Although it had the same inspiring engines and an even sharper suspension, it suffered from dowdy styling and a generally unfinished feel. A 2003 facelift helped, but it was too little, too late; it was dropped in 2007. As of this writing, Alfa has yet to field a replacement, although CEO Luca De Meo said in June 2008 that a successor, the 169, would be launched by mid-2011. Alfa has also talked seriously about returning to the U.S. market, but with the state of the economy, when or if that will happen is anybody's guess.
Karl Ludvigsen suggests that the failings of the 164 and 166 stem from a deep-seated Italian ambivalence about the class -- or, more to the point, about the sort of plutocrats who buy and drive them. We consider that a terrible shame. The modern executive class is full of highly competent vehicles of limited aesthetic appeal (to our mind, former BMW design chief Chris Bangle has much to answer for in that regard), often with about as much personality as an office furniture catalog. In such a market, cars as vivid as the Alfa 164 -- risky though they may be -- are sorely missed.
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NOTES ON SOURCES
Our principal sources for Alfa Romeo's travails in the seventies and eighties were David Owen, Alfa-Romeo: Always with Passion (Haynes Classic Makes) (Sparkford, Nr. Yeovil, Somerset: Haynes Publishing, 1999), and the Company History on Answers.com (author and date unknown; Answers.com, http://www.answers.com/topic/alfa-romeo, accessed 16 April 2009). Additional insights into the Fiat buyout came from Karl Ludvigsen, "Four-Leaf Clover: Lucky This Time?" (16 July 2008, NextAutos, http://www.nextautos.com/winding-road-issue-1/four-leaf-clover-lucky-this-time, accessed 19 April 2009) and Giorgio Lonard, "'Sforzi Insufficienti L'Alfa 'Fuori Mercato,'" La Repubblica (12 October 1985, Sezione: ECONOMIA, pagina 45, http://ricerca.repubblica.it/repubblica/archivio/repubblica/1985/10/12/sforzi-insufficienti-alfa-fuori-mercato.html, accessed 19 April 2009), which seriously taxed your author's linguistic skills. A few details on the Type Four project came from its Wikipedia entry ( http://en.wikipedia.org/wiki/Type_Four_chassis, accessed 15 April 2009); we were not able to confirm the signature date of the original agreement elsewhere. Information on the other Type Four cars came from Jean Lindamood, "Björn Envall and the Saab 9000: The maverick from Trollhättan meets the toast of Turin," Car and Driver, December 1985 (Vol. 31, No. 6), pp. 85-87, and the Cars from Italy pages on the Croma and Thema (author and date unknown; http://www.carsfromitaly.net/fiat/index.html and http://www.carsfromitaly.net/lancia/index.html, accessed 16 April 2009). Although the Peugeot 605 was not a Type Four car, we also consulted William Jeanes, "Peugeot 605 SR3.0: A new executive-length tourer from France," Car and Driver, March 1991 (Vol. 36, No. 9), pp. 84-91. Data on the Alfa 164 came from David Owen, Alfa-Romeo: Always with Passion (Haynes Classic Makes); the 164 page on Cars from Italy (author and date unknown, http://www.carsfromitaly.net/alfaromeo/index.html, accessed 15 April 2009); Colin Verrilli, the Alfa Romeo 164 Home Page (authors unknown, 1998, http://www.digest.net/alfa/FAQ/164/, accessed 16 April 2009); John Phillips III, "Alfa Romeo 164S," Car and Driver, June 1990 (Vol. 35, No. 12), pp. 72-79; Kevin Smith, "Foreigners in the Fast Lane: Seven pricey sedans undergo our acid test," Car and Driver, July 1991 (Vol. 37, No. 1), pp. 54-70; David Vivian, "All Change: Alfa Romeo 164 Cloverleaf, BMW 530i, Jaguar XJ6 3.2S" ( Performance Car, August 1993), reprinted in R.M. Clarke, ed., Jaguar XJ6 1986-94 Gold Portfolio (Cobham, Surrey: Brooklands Books Ltd., 1995); and James Cleary, "Starfighter," Modern Motor (September 1988), reprinted in R.M. Clarke, ed., BMW 5 Series 1988-95 Gold Portfolio (Cobham, Surrey: Brooklands Books Ltd., 1999).
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Alfa Romeo was probably one of the few government owned car companies ( well, except the ones from Soviet Union)