Alfa Romeo Changes Its Mind, Gas Engines are Staying

Like dominoes, lofty EV goals are falling one after another across the automotive industry. Alfa Romeo is the latest brand to backtrack on its original plan to abandon combustion engines. The Italian brand, part of the Stellantis empire, had intended to go fully electric in North America by 2027, but plans have changed. The new goal is to adopt a “multi-energy” strategy, offering gas, electric, and plug-in hybrid vehicles.

Automotive News cites Alfa Romeo North America chief Chris Feuell during the NADA Show, saying that forcing dealers to sell only electric cars in just a couple of years from now would be too restrictive: “We’ve got 110 dealers … in our US network, and it would be very challenging for them to survive with a BEV-only portfolio.” The company has enough problems as it is, with sales dropping by 19% last year in the US to just 8,865 cars.

It’s worth noting that when Alfa Romeo originally announced going EV-only in North America, it also said it would do the same in Enlarged Europe and China. Whether the 2027 target is still applicable in those regions is unclear. Still, former CEO Jean-Philippe Imparato recently said that Alfa can adopt a more diverse powertrain lineup by keeping gas engines for the long haul if that’s what people want.

Imparato said the company’s new boss, Santo Ficili, “has the flex” to launch ICE versions of the Giulia and Stelvio replacements. The two models will sit on the STLA Large platform, and as seen with the Dodge Charger, it’s been engineered for gas and electric drivetrains. The SUV is coming later this year, with the sedan to follow in 2026.

Like other Stellantis brands, Alfa Romeo has an inventory problem. Roughly half of the cars sitting on dealer lots in the US are 2024MY vehicles, so discounts are planned for the first quarter of 2025 to get rid of unsold cars. To move inventory, a $399 monthly lease deal for the gas-fueled Tonale is coming.

The Junior crossover, originally called Milano, isn’t sold in America. However, last week, US dealers were asked whether the smaller crossover should get a US visa to be positioned underneath the Tonale. In Europe and other markets, Alfa sells the subcompact model with a mild-hybrid three-cylinder, 1.2-liter turbo engine and as a pure EV.

At the other end of the lineup, Alfa Romeo is working on a new supercar to follow the 33 Stradale. It, too, will have a retro design and is expected to hit the market in 2026. The previous flagship was advertised as the firm’s last ICE supercar, but given the relaxed EV goals, we won’t be too surprised if there will still be a gas version.