The automotive industry has been grappling with ambitious EV goals, and Alfa Romeo is the latest brand to revise its plans. Originally set to transition to an all-electric lineup in North America by 2027, the Italian marque, part of the Stellantis group, has now opted for a “multi-energy” strategy, which includes petrol, electric, and plug-in hybrid vehicles.
A Pragmatic Shift for Dealers
According to reports, Chris Feuell, head of Alfa Romeo North America, acknowledged that requiring dealers to sell only battery electric vehicles (BEVs) within a few years would be overly restrictive. “We’ve got 110 dealers in our US network, and it would be very challenging for them to survive with a BEV-only portfolio,” Feuell explained.
The decision comes amidst challenging circumstances for the brand in the US, with sales declining 19% last year to just 8,865 units. This shift reflects a more flexible approach to ensure the sustainability of its dealer network and cater to a broader range of consumer preferences.
Global Strategy Uncertainty
When Alfa Romeo first announced its EV-only strategy, the plan extended to regions like Enlarged Europe and China. Whether the 2027 target remains intact in these markets is unclear. However, former CEO Jean-Philippe Imparato indicated the company could maintain petrol engines longer if consumer demand persists.
Alfa’s new leadership, under Santo Ficili, has embraced this flexibility. Petrol-powered versions of the upcoming Giulia and Stelvio replacements will coexist with electric variants, both based on the versatile STLA Large platform. The new SUV is slated for release later this year, with the sedan to follow in 2026.
Addressing Inventory Challenges
Alfa Romeo also faces an inventory surplus in the US, with roughly half of the cars on dealer lots being 2024 models. To address this, the company plans discounts in Q1 2025, including a $399 (RM1,751) monthly lease offer for the petrol-powered Tonale SUV.
In addition, Alfa is considering whether to introduce the subcompact Junior crossover (sold in Europe as the Milano) to the US market. The model is available overseas with a mild-hybrid 1.2-litre turbo engine and as a pure EV, offering another opportunity to diversify its lineup stateside.
The Future of Performance and Design
Alfa Romeo continues to prioritise its identity as a maker of high-performance and stylish vehicles. Following the launch of the 33 Stradale, a new retro-inspired supercar is expected to debut in 2026. While the 33 Stradale was marketed as Alfa’s final internal combustion engine (ICE) supercar, the recent relaxation of EV goals leaves the door open for future petrol-powered iterations.
By embracing a multi-energy approach, Alfa Romeo aims to strike a balance between innovation and practicality, catering to diverse markets while staying true to its performance heritage.
