Alfa Romeo has dramatically reversed course on its next-generation Giulia and Stelvio models, scrapping initial all-electric designs in favor of a multi-powertrain approach. This decision comes after a disappointing 36% sales drop in the US market, where the brand’s aging lineup – consisting of the Giulia, Stelvio, and Tonale – sold just 5,652 units in the past year. The move highlights a broader shift in the automotive industry, influenced by slowing EV adoption and revised emissions regulations.
Market Realities Force a Rethink
The initial plan for the new Giulia and Stelvio was fully electric, driven by stricter emissions targets in Europe. However, recent policy changes in both the European Union and the United States have altered the landscape. The EU has loosened its 2035 zero-emission mandate, allowing for continued sales of combustion-engine cars beyond that date, while the US eliminated key EV tax credits.
Alfa Romeo CEO Santo Ficili stated the company must “change everything,” including reinventing platforms and electronic architecture. The shift is driven by the realization that forcing an all-electric lineup would likely result in poor sales figures, particularly in markets like the US where consumer demand for EVs hasn’t met expectations.
A Return to Flexibility
Instead of an EV-only approach, Alfa Romeo will now utilize the STLA Large platform. This enables the use of traditional combustion engines, potentially including the twin-turbo 3.0-liter Hurricane inline-six engine from Dodge. European variants will still offer electric and plug-in hybrid options, with range-extended EVs also under consideration.
The decision follows the success of the Alfa Romeo Junior in Europe (over 50,000 orders by mid-September), but contrasts sharply with the brand’s struggles in the US, where BMW sold more X4 crossovers than Alfa Romeo sold across its entire lineup. The company’s revised strategy is a direct response to these market pressures.
Delayed Launch and Aging Models
The redesigned Giulia and Stelvio are now expected to arrive in 2028, a significant delay from the originally planned 2027 launch. This means the current models will remain on sale through the end of 2027. Further details will be unveiled during Stellantis’ upcoming Capital Markets day event, where CEO Antonio Filosa will present a new plan for Alfa Romeo.
The delayed launch and shift in powertrain strategy reflect the volatile nature of the automotive industry, where manufacturers must adapt quickly to changing consumer preferences and regulatory environments.
