Alfa Romeo has confirmed it won’t be introducing a new hatchback, with the Tonale being its sole model in the compact segment. The decision came straight from the company’s CEO, who revealed that the Giulietta will not be part of the brand’s future lineup, citing customer preferences towards SUVs.

This disappointing news for hatchback fans came directly from Santo Ficili, Alfa Romeo’s newly appointed CEO, during an interview with French outlet L’Argus. After sharing details about the upcoming Stelvio and Giulia models, Ficili put an end to the rumors about a new Giulietta. He explained, “Honestly, at the moment, I don’t see a future for a Giulietta because there is no demand for a compact sedan. Today, the Giulietta is the Tonale.”

More: 2027 Alfa Romeo Giulia Will Be A Crossover, Abandoning Its Sedan Roots

The Alfa Romeo boss admitted to being a fan of the nameplate, but pointed to market conditions as the reason for stepping away from the segment. ‘I’ve owned 20 Giuliettas in my life, and it’s a fantastic car, even now. But we have to follow market demand, and customers want SUVs. And we have to sell cars.”

The Giulietta name has a long history, first introduced as a 2+2 coupe back in 1954, followed by a four-door sedan and a roadster. The second generation, launched in 1977, was offered exclusively as a sedan, while the hatchback version (originally intended to adopt the Milano moniker) debuted in 2010. Production of the Giulietta hatchback lasted until 2020, but now it’s clear that Alfa Romeo is shifting its focus entirely to SUVs.

A new Giulietta would have competed with models like the BMW 1-Series, Audi A3, and Mercedes A-Class. However, with the latter soon to be discontinued, Alfa Romeo likely saw limited future in that market. Instead, the most realistic future for a compact Alfa would have involved the STLA Medium platform, allowing for both electric and hybrid powertrains. This platform is set to underpin many future models across Stellantis brands, helping to optimize manufacturing costs.

Still, with hatchbacks steadily losing ground to the far more popular SUVs, it was no surprise that a brand like Alfa Romeo would focus on more profitable segments. After all, the same shift happened with the discontinued Mito supermini, which was replaced by the Junior small SUV.

More: Alfa Romeo Scraps EV-Only Plan As Dealers Warn Of Sales Collapse

The Giulietta’s potential revival had been hinted at by former CEO Jean-Philippe Imparato, who suggested in 2023 that there might still be money to be made from hatchbacks. While this statement left a window of possibility for a new generation of the Giulietta, it is now clear that Alfa Romeo has lost interest in such an offering.

Under the strategy laid out by Imparato, Alfa Romeo plans to launch one new model every year. After the Tonale, Junior, Stelvio, and Giulia debut between 2023 and 2026, the brand is set to unveil a flagship SUV/crossover in 2027, specifically designed for the US market.

Alfa Romeo has become the latest automaker to pump the brakes on its EV-only ambitions, opting for a new “multi-energy” strategy instead. This shift comes as the brand struggles to revive its North American dealer network, which has been severely impacted by sluggish sales.

Chris Feuell, the recently appointed head of Alfa Romeo North America, confirmed the pivot, noting that the change was made within the past month. “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.

Read: Did Alfa Romeo Just Tease The Next Stelvio?

The Italian marque, part of the Stellantis group, had previously aimed for an all-electric lineup by 2027, with the 2023 Alfa Romeo Tonale slated as the last gas-powered model. However, plans for the next-generation Stelvio SUV and Giulia sedan, originally intended as EVs, are now being revised to include hybrid and internal combustion engine variants. Both models will be built on Stellantis’ STLA Large platform, the same architecture underpinning the Dodge Charger.

US Dealers Are Concerned

After meeting with Alfa Romeo dealers at the NADA Show on January 26, Feuell acknowledged the challenges of maintaining a BEV-only lineup. “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,” he told Auto News.

Feuell admitted that the biggest concern among U.S. dealers is the viability of the Alfa Romeo network, with sales dropping 19 percent in 2024 to 8,865 units, marking the fourth consecutive year of decline. The situation was even worse in the fourth quarter of 2024, when the Italian brand saw a 38 percent drop compared to the same period in 2023.

Big Incentives For Leftover 2024MYs

As a result, the US boss revealed that 2024 models currently make up half of Alfa Romeo’s U.S. inventory. To clear out the remaining stock by the end of Q1 2025, the company is offering substantial incentives to attract prospective buyers.

Feuell stated that she was “very transparent” with dealers regarding the operational and financial performance of the network. She warned, “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. We’re down to 110 dealers from where we were at 150.”

More: Alfa Romeo Introduces Entry-Level Tonale For Under $37k

According to Feuell, the top priority for rebuilding the dealer network is “getting the sales back on track and improving some of the quality issues that we’ve had in the product, so they can shift away from a very high mix of warranty repairs back into customer-pay maintenance and light repair work.”

Another topic raised during the dealer meeting was whether Alfa Romeo should introduce the subcompact Junior to the U.S. market. While Feuell sought dealer input, she declined to share the outcome of those discussions. Interestingly, Jeep is also contemplating whether to bring the Junior’s Avenger cousin to North America as well.