Alfa Romeo Shifts Gears: Embraces Multi-Energy Future

Alfa Romeo has officially abandoned its ambitious plan to go all-electric by 2027, opting instead for a “multi-energy” approach that includes internal combustion engines (ICE) and hybrid powertrains alongside electric vehicles (EVs). Christine Feuell, Chrysler CEO and Head of Alfa Romeo North America, announced this strategic shift during the recent National Automobile Dealers Association (NADA) show.

“The biggest thing in our product and technology roadmap is transitioning from what was a BEV-only strategy for Alfa to one that is multi-energy,” Feuell explained. This decision comes as the Italian brand grapples with declining sales and mounting pressure from its dealer network in North America.

Feuell acknowledged the challenges faced by Alfa Romeo’s U.S. dealers, stating, “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.” The brand’s sales in North America have been on a downward trend, with a 19% drop in 2024 to just 8,865 units, marking the fourth consecutive year of decline.

The new multi-energy strategy will impact upcoming models, including the next-generation Giulia sedan and Stelvio SUV. These vehicles will now offer ICE and hybrid options alongside planned battery electric variants, all built on Stellantis’ versatile STLA Large platform.

Feuell emphasized the urgency of the situation, warning, “If we replicate what happened in 2024, we’ll lose a lot of dealers, and we need to rebuild the network rather than deplete it.” The brand’s U.S. dealer count has shrunk from 150 to 110 recently.

To address immediate concerns, Alfa Romeo is offering significant incentives to clear out leftover 2024 models, which currently make up half of its U.S. inventory. Feuell also outlined priorities for the brand, saying, “The top priority is getting sales back on track and improving some of the quality issues that we’ve had, so dealers can shift from a high mix of warranty repairs to customer-pay maintenance and light repair work.”

This pivot away from an all-electric future aligns Alfa Romeo with other automakers who have recently adjusted their electrification timelines. It also reflects the challenges the automotive industry faces in balancing ambitious environmental goals with market realities and consumer preferences.

Earlier this month, we reported that ICE versions of the Tonale had quietly begun to appear on the company’s U.S. website and in its showrooms despite no formal announcement from the brand.

Source: Automotive News