Alfa Romeo is abandoning its ambition to feature an all-electric model range by 2027. The Italian brand now favours a multi-energy strategy, announced Chris Feuell, Director of Alfa Romeo North America, at a meeting at the NADA show.
A strategic shift
Initially, Alfa Romeo had planned for the Tonale plug-in hybrid, launched in 2023, to be the last model introduced with a gasoline engine. However, Feuell, in place at the head of Alfa in North America since December, revealed a major change of direction. The conventional gas-engine version of the Tonale is now arriving at dealerships, accompanied in the U.S. by an attractive leasing offer.
An expanded range and a shrunken network
Feuell also sounded out dealers about possibly launching the Junior small compact crossover in North America. That model is sold overseas in electric and light-hybrid versions, in line with the brand's new diversification objectives.
Alfa Romeo's U.S. network now numbers 110 dealers, compared with 150 previously. Dependence on a 100-percent electric portfolio would jeopardize their viability. Chris Feuell was blunt about the state of affairs at Alfa: “Sales fell 38 percent in the fourth quarter and 19 percent in 2024, marking a fourth consecutive year of decline.”
Meeting the challenges
To revive sales, Alfa Romeo is looking to clear its stock of 2024 models, which still represents 50 percent of its inventory. Incentives should help achieve this goal before the end of the first quarter. In addition, Feuell is focusing on improving product quality to reduce warranty repairs and encourage paid servicing.
By adopting a multi-energy strategy, Alfa Romeo hopes to revitalize its dealer network and meet the expectations of a diversified customer base. The challenge will be to reconcile this transition with improved quality and financial results.
