Key Takeaways:
– Alfa Romeo revises its plan to go fully electric in North America by 2027.
– The company opts for a multi-energy approach, continuing to offer gas, electric, and plug-in hybrid vehicles.
– Sales in the US dropped by 19% last year, indicating the need for a diversified approach.
– No clarity on whether the 2027 EV-only target holds for Europe and China.
– Alfa plans to release the gas and electric versions of Giulia and Stelvio replacements.
Alfa Romeo’s Change of Plan
Renowned automotive company Alfa Romeo, has revised its electrification initiative. Originally intending to abandon combustion engines and go fully electric in North America by 2027, the company will now adopt a “multi-energy” approach. Gas, electric, and plug-in hybrid vehicles will remain part of the brand’s portfolio, ensuring variety for consumers.
Chris Feuell, Alfa Romeo North America’s chief, explained that pushing dealers to sell only electric cars within the next few years would be too limiting. With around 110 dealers in the U.S network, transitioning to a Battery Electric Vehicle (BEV) only portfolio would pose a significant challenge for the company already troubled by declining sales. Last year, for instance, sales in the US dropped by a significant 19%, a slump down to just 8,865 cars.
Blurred Lines for EV-only Target
While the Italian brand, part of the Stellantis empire, announced it would go EV-only in “Enlarged Europe” and China as well, uncertainty clouds whether this plan remains intact for these regions. Alfa’s former CEO, Jean-Philippe Imparato, suggested that the firm can adopt a wider powertrain lineup by retaining gas engines if this aligns with consumer demand.
Indeed, the current head of the company, Santo Ficili, looks set to launch Internal Combustion Engine (ICE) versions of the Giulia and Stelvio replacements. These new models, expected to be based on the STLA Large platform, have been designed for both gas and electric drivetrains. The SUV is likely to hit the market later this year, followed by the sedan in 2026.
Maneuvering the Inventory Conundrum
Much like other Stellantis brands, Alfa Romeo has a significant inventory concern to address. About half of the cars currently on dealer lots in the US are 2024 model year vehicles. As a result, Alfa plans to offer discounts in the first quarter of 2025 to sell unsold cars.
Adding to this strategy, the company is also considering a monthly lease deal of $399 for the gas-fueled Tonale. Along the same lines, Alfa’s Junior crossover, previously known as Milano and unavailable in America, might find a new home in the US market. Currently, it’s offered in some markets as a subcompact model with a mild-hybrid three-cylinder, 1.2-liter turbo engine or as a pure electric vehicle.
On The Horizon: A New Supercar
Casting an eye towards the future, Alfa Romeo is also preparing to launch a new supercar, a successor to the 33 Stradale. The car, expected to feature a retro design, is planned for a market launch in 2026. Interestingly, the previous flagship was marketed as the last ICE supercar of the brand. However, given Alfa Romeo’s altered EV plans, the possibility of another gas model doesn’t seem too far-fetched.
In sum, Alfa Romeo’s decision to revise its electrical transformation plans highlights the ongoing challenges automotive brands face when navigating the switch to a greener future. Market trends, consumer preference, and practical business considerations must all be balanced as Brands forge their path in the modern automotive landscape.