Hey Baby! The Alfa Romeo money can't buy

The advertising billboard blitz for the new Alfa Romeo MiTo has worked too well. The first batch of cars has sold out before arriving in showrooms.

Indeed, the MiTo (pronounced "me-toe") has become the most affordable car on sale in Australia that money can't buy.

The hot hatch designed to compete with the new MINI Cooper S starts at $31,490 plus dealer charges and on-road costs.

But the first shipment of cars is sold out for four months, meaning if you order a tailor-made MiTo today (customers can choose unique colour and trim options) it could take until December to be delivered.

The MiTo (named after Milan where it was designed, and Torino where it is made) is the first Alfa Romeo in the city-car segment.

The Italian company is one of a growing number of luxury brands who believe the next big thing is small.

"Car buyers are downsizing all around the world but they don't want to sacrifice luxury," says Edward Butler, the general manager for Alfa Romeo in Australia.

"In fact, we're seeing car buyers skip entire segments and jump from large and medium cars into small city cars."

It's a global trend that is catching on in Australia. According to figures from the Federal Chamber of Automotive Industries, small cars now account for one in three passenger cars sold.

Furthermore, sales of city cars (or "light" cars, as the industry defines them) have declined at a slower rate than the rest of the new-vehicle market, which is down by 16 per cent in the first six months of this year.

The relatively small Alfa Romeo brand embarked on a bold advertising campaign for the MiTo, using billboards along the east coast of Australia and a direct email campaign nationally in the lead-up to this week's launch.

"We initially wanted to let people know the car was coming but instead we've seen an increase in Alfa Romeo sales in general," Butler said.

The last three months saw the strongest quarterly result for the brand since 2007. Furthermore, sales went up by a massive 30 per cent in June, the same month the advertising campaign started.

Indeed, the MiTo has helped Alfa Romeo clear some of its older stock.

"People have come in to buy a MiTo and because it wasn't available yet they've driven out in another Alfa," said Alex Ball, national marketing manager for Alfa Romeo in Australia.

The local distributor expects the MiTo will bring more new customers to Alfa Romeo than any other model since the brand was reintroduced locally in 1998.

Up to 80 per cent of customers are expected to make the MiTo their first Alfa Romeo.

"Most direct email marketing campaigns typically have a 'click open' rate of about 20 per cent," says Ball. "But with the MiTo the 'click open' rate was closer to 60 to 70 per cent. A lot of people want to know about the car."

There are two models in the MiTo line-up in Australia. The regular MiTo (pictured -- $31,490 plus dealer charges and on-road costs) and the MiTo Sport ($37,490 plus dealer charges and on-road costs).

Both are powered by a 1.4-litre turbocharged four-cylinder petrol engine but the outputs vary thanks to engine tuning.

The regular MiTo's engine (88kW and 206Nm) comes with a five-speed manual; the Sport's engine (114kW and 230Nm) has a six-speed manual.

An automated twin-clutch gearbox is due by the middle of 2010, ahead of the super-hot hatch, the MiTo GTA.

There are no plans for a diesel MiTo because the petrol engines are so efficient (6.1L/100km and 6.5L/100km for the regular and Sport models respectively).

Meanwhile, Alfa Romeo executives in Australia say the merger of parent company Fiat and troubled North American car maker Chrysler will mean good news locally.

The first two of the Italian maker's cars to be sold in the US are likely to be the Fiat 500 and Alfa Romeo MiTo.

But the increased focus on future models being sold in the US will likely translate to better availability and a faster introduction of cars Down Under.

"New models will come to Australia a lot quicker, and we also expect to get things like automatic transmission a lot faster as well," says Butler. "Australia is predominantly an automatic transmission market, so that's important for us."

Alfa Romeo and Fiat vehicles are imported by an independent distributor in Australia, whereas Chrysler has a subsidiary here.

Will the merger affect the distribution or dealer network of Alfa Romeo and Fiat vehicles locally? Butler says: "Our gut feel is that we will continue to import and distribute Alfa Romeo and Fiat products in general. There is no discussion with Chrysler at the moment in Australia and we have no plans for discussions with Chrysler. But who knows what the future holds."

The distributor of Alfa Romeo and Fiat vehicles in Australia is Neville Crichton, a highly successful automotive entrepreneur with a strong reputation for distributing new or niche brands in Australia.

Crichton has strong ties with the Italian brands as he is also a distributor for Ferrari and Maserati sports cars, which come under the Fiat Group umbrella.

Crichton is also one of the world's most successful blue water ocean yachtsman, and Alfa Romeo has just extended its sponsorship of his yacht racing team that competes internationally under the Alfa Romeo name.

Yacht racing has been the centrepiece of Alfa Romeo's summer marketing campaign in Europe, even replacing motorsport.

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