The electric revolution has hit a speed bump at Alfa Romeo. Once committed to going all-electric in North America by 2027, the Italian luxury brand has scrapped its EV-only timeline, opting instead for a “multi-energy” strategy. This shift will see Alfa Romeo offering a mix of gas-powered, electric, and plug-in hybrid vehicles, reflecting a growing trend of recalibrated EV ambitions across the automotive industry.
Dealers push back on EV exclusivity
Alfa Romeo’s decision comes amid concerns that an EV-only lineup would be too restrictive for its US dealership network. Chris Feuell, Alfa Romeo North America chief, acknowledged the challenges during the National Automobile Dealers Association (NADA) Show.
“We’ve got 110 dealers … in our US network, and it would be very challenging for them to survive with a BEV-only portfolio,” Feuell said. With US sales plummeting 19% last year to just 8,865 vehicles, the brand is under pressure to deliver models that align with consumer demand and dealer viability.
Global uncertainty about EV timelines
When Alfa Romeo first announced its EV ambitions, it planned to go electric-only not just in North America but also in Enlarged Europe and China. However, recent comments from company leadership suggest a more flexible approach. Former CEO Jean-Philippe Imparato hinted that the company would retain gas-powered options for as long as consumers demand them. New CEO Santo Ficili appears to be leaning into this adaptability, with upcoming models like the Giulia and Stelvio replacements set to feature both internal combustion engine (ICE) and electric variants on Stellantis’ STLA Large platform.
Inventory woes and dealer incentives
Alfa Romeo’s EV backtrack isn’t just about strategy—it’s also about survival. With half of its US dealer inventory consisting of unsold 2024 models, the company is introducing aggressive discounts to clear stock. A $399 monthly lease deal on the gas-powered Tonale is part of the effort to jump-start sales.
Additionally, Alfa Romeo is gauging interest in bringing its Junior crossover to the US. Currently available in Europe with a mild-hybrid 1.2-liter turbo engine and as a pure EV, the subcompact could slot beneath the Tonale in the lineup, providing an entry-level option to attract more buyers stateside.
Alfa’s high-performance future: ICE supercars and retro designs
At the opposite end of the spectrum, Alfa Romeo is preparing a new flagship supercar set to debut in 2026. This model, which will follow the retro-inspired 33 Stradale, is expected to have both ICE and EV powertrains. While Alfa Romeo initially marketed the 33 Stradale as its last ICE supercar, the relaxed electrification timeline raises the possibility of more gas-powered high-performance vehicles in the future.
A strategic pivot to survive
Alfa Romeo’s shift away from an all-electric future highlights the challenges facing legacy automakers in the EV era. With slowing EV adoption, inventory backlogs, and resistance from dealers, the brand’s multi-energy strategy is a pragmatic move to balance innovation with market realities. However, whether this pivot will be enough to reverse Alfa Romeo’s fortunes remains to be seen.
