Alfa Romeo changes to multi-energy strategy

IN LOCKSTEP with many other European automotive brands, Stellantis-owned Alfa Romeo has scrapped its EV-only strategy leaving it to persevere until the end of 2027 without any new generation metal to sell.

 

At the launch of an updated Tonale in Pisa, Italy, Alfa Romeo CEO Santo Ficil said the “holding pattern” remains after the cancellation of BEV-only replacements for the Giulia midsize sedan and the Stelvio midsize SUV.

 

They will be replaced by vehicles built on Fiat Chrysler platforms that utilise both BEV and combustion-based drivetrains “to offer customers a wider choice”.

 

According to a report in Automotive News Europe, the market for larger EVs has cooled on the Continent while plug-in hybrids have made a comeback this year.

 

In a familiar sounding statement, Mr Ficili said Alfa Romeo “has already written” its future product plan under the assumption that internal combustion and EV models will co-exist for a longer time than initially forecast.

 

“In the absence of new products, Alfa Romeo will rely on events and partnerships to sustain interest in the Giulia and Stelvio, which were launched in 2015 and 2017,” added Mr Ficili.

 

He cited Alfa Romeo’s partnership with sailing team Luna Rossa as an example of sustaining interest in the brand.

 

The facelifted Tonale, launched in 2022, has a bolder front and engines are updated to the Euro 6e emissions standard, the model offered with a 1.5-litre mild hybrid powertrain, a 1.3-litre plug-in hybrid and a 1.6-litre turbodiesel engine in some markets.

 

Alfa Romeo’s now scrapped electrification plan fell under the auspices of parent Stellantis’ Dare Forward 2030 plan unveiled by former CEO Carlos Tavares in 2022.

 

The iconic Italian brand was scheduled to launch only full-electric models starting in 2025 and switch to 100 per cent electric by 2030 but that has morphed into a multi-energy strategy.

 

Automotive News Europe says Mr Tavares’ replacement as Stellantis CEO, Antonio Filosa, who started in June, will unveil a new strategic plan in the first half of 2026 with Mr Ficili adding that the plan will include future products as well as new internal and dealer organizations for Alfa Romeo.

 

That strategy dictates Alfa Romeo will compete in the small, compact and midsize segments as “large cars are not the brand’s territory,” counter to what was previously announced in 2022 by former CEO Jean-Philippe Imparato who said Alfa would develop a large model to help the brand grow in the North American market.

 

In relation to Alfa-Romeo’s change of tack, Matthias Schmidt of Schmidt Automotive Research told Automotive News Europe, “The pivot from an all-EV strategy back to internal combustion engine models will not necessarily be too costly, because Alfa Romeo can leverage powertrain resources within the Stellantis group”.

 

Most of Stellantis’ compact and midsize models in Europe are built on the STLA Medium platform, which can accommodate BEV and combustion-based drivetrains.