Alfa Romeo has abandoned its initial plan to become an all-electric carmaker by 2027, opting instead for a multi-energy approach. This shift comes as the Stellantis brand responds to evolving market conditions, particularly in North America. Alfa Romeo’s North American head, Chris Feuell, confirmed the change in direction, which includes the introduction of a petrol-only version of the Tonale SUV in the U.S.
Feuell, who assumed leadership of Alfa Romeo North America in December, stated in an interview with Automotive News that the move from a battery-electric vehicle (BEV)-only strategy to a multi-energy roadmap reflects the challenges faced by U.S. dealerships. “We’ve got 110 dealers … in our U.S. network, and it would be very challenging for them to survive with a BEV-only portfolio,” Feuell explained.
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The shift marks a significant departure from the original plan, which envisioned only electric vehicles after 2025, with the phase-out of remaining hybrid and plug-in hybrid models by 2027. However, Alfa Romeo will now expand its range of combustion engine vehicles, starting with a petrol-only version of the Tonale, aimed at attracting new buyers with competitive leasing options. The model was initially planned to feature only electrified powertrains.
Alfa Romeo’s strategy adjustment comes amid ongoing restructuring within Stellantis, including leadership changes following the departure of CEO Carlos Tavares. The company has faced challenges, especially in the U.S. market, where Alfa Romeo’s sales declined by 19% in 2024. This marks the fourth consecutive year of sales drops for the brand in North America. “There are still too many 2024 model year vehicles unsold, which still make up half of the U.S. stock,” Feuell noted, adding that these vehicles will be sold off by the end of the first quarter with incentives.
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The change in direction also includes a potential U.S. debut of the smaller Junior crossover, though discussions with dealers regarding its launch remain ongoing. The Junior, which was initially presented as the Milano, has faced challenges due to Italian laws surrounding product naming conventions. It will be available as both a hybrid and an electric vehicle.
