Fiat CEO, Segio Marchionne, has put the rumor of VW buying over Alfa Romeo to rest for now. Alfa will officially stay under its Italian parent's wing at the moment as Marchionne attempts to revive the ever-struggling Italian luxury automaker.

It is estimated that Fiat loses over $400 Million a year because of the upscale brand. Marchionne says Alfa will have to move 300,000 units annually to be profitable. For the record, Alfa is on pace for ~105,000 units this year, and Marchionne wants to hit 500,000 units by 2014 with the help of new models and entry into the US market around 2012.

If plans to enter the US market do materialize, America should get some cars that will compete with BMW. That means in addition to the entry-level Giulietta, US should get the mid-size Giulia luxury car to take on the 3-Series, a larger 169 based on Chrysler's RWD platform, and possibly a small soft-roader to compete with the X1 and X3.

Before any of the above happens, its shareholders will soon have to make a very important decision of investing $2 billion to pull Alfa Romeo back from the brink or ditch it and regroup.