Alfa Romeo scales back its 2027 fully electric ambitions

Alfa Romeo is reversing course on its ambitious all-electric plans, opting instead for a multi-energy strategy as it battles declining sales and a shifting global EV market. The Italian automaker, which initially aimed to be fully electric by 2027, will now offer a mix of gasoline, hybrid, and electric powertrains in its future lineup.

The decision to scale back EV exclusivity comes amid concerns about dealer viability, particularly in the US market, where Alfa Romeo’s sales remain sluggish.

North American CEO Chris Feuell told Automotive News that the company must ensure its US dealers can sustain themselves. It would be complicated with a battery-electric vehicle-only lineup amidst economic and political turmoil in the region. The brand’s US dealer network has shrunk from 150 to 110 locations, further highlighting the struggle.

Jumping the bandwagon

The change doesn’t strictly stem from an Alfa Romeo problem but aligns with a broader industry trend of automakers reassessing aggressive EV timelines. Porsche, Lotus, Audi, and Mercedes-Benz have all tempered their all-electric ambitions in response to softening demand and increased competition from lower-cost Chinese EV brands. Most notable was the U-turn from all-electric advocate Volvo, which pushed back its 2030 deadline without committing to a new date.

Alfa Romeo’s EV-only push was directed under the reign of former Stellantis boss Carlos Tavares. Interestingly, he demanded to build a strategy on flexible architectures, which made it easy for Alfa Romeo to reverse its plans and offer combustion solutions for blueprinted electric-only models.

The Tonale, initially introduced as a plug-in hybrid only, will receive a gasoline-only version built around a turbocharged four-cylinder. This will drive the starting price down.

An Italian DS N°8?

Alfa Romeo’s global sales continue to decline. Despite being the newest model, the mentioned Tonale has not been a breakthrough success, while the aging Giulia and Stelvio urgently need an overhaul.

Alfa Romeo plans to overhaul its iconic Giulia sedan and transform it into a crossover for its next generation. How will it differentiate itself from the new Stelvio, expected to debut in 2026? Both models will migrate to Stellantis’ STLA Large platform, offering a range of electric, hybrid, and gasoline options.

In an interview with French publication L’Argus, Alfa Romeo CEO Santo Ficili hinted that Giulia’s shift to a new body style responds to consumer demand for higher-riding vehicles. The final design may resemble an Italian take on crossovers like the DS Nº8 or Peugeot 408.

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