Stellantis Delays Stelvio SUV Launch Due to EV Demand, Tariffs

Alfa Romeo, a subsidiary of Stellantis, is reportedly delaying the launch of its new Stelvio SUV. This decision comes as the company reassesses its strategy in response to the lackluster demand for electric vehicles. The new Stelvio, initially planned for production in Cassino, Italy, is now expected to begin deliveries no earlier than September or October of next year. This delay pushes back the original timeline, which aimed for a late 2023 unveiling and a first-quarter 2026 market release.

The delay is part of a broader strategic adjustment by Stellantis, which also owns brands such as Fiat, Jeep, and Peugeot. Initially, the new Stelvio was planned to be an all-electric vehicle (EV). However, the company is now developing a hybrid version, which has contributed to the delay. This adjustment could temporarily slow down Stellantis' broader plan, announced late last year, to revitalize production and employment in Italy.

Stellantis recently appointed Antonio Filosa, its North American business head, as the new CEO. Earlier this month, the company's European business head indicated that the plan was being updated. The second source noted that while the new Stelvio is based on Stellantis' multi-power architecture "STLA large" platform, developing its hybrid version will take time. This evaluation of powertrain options has not affected the plans for Alfa Romeo's new Giulia sports sedan, which is still expected to launch next year.

Stellantis' spokesperson stated that the revisions to the Italian plan "include expanding and adjusting the business in the country based on current market conditions, uncertainties around EU regulations, and the impact of tariffs." The European market's demand for electric vehicles has been sluggish, leading many to predict that the EU may slow down the industry's transition to electric vehicles. In the United States, which accounts for about 15% of Alfa Romeo's sales, tariffs could impact the sales of European-manufactured models.

Stellantis earlier this year hired a consulting firm to advise on the impact of U.S. tariffs on Alfa Romeo and its luxury brand Maserati. The company is navigating a complex landscape where market conditions, regulatory uncertainties, and trade policies are all influencing its strategic decisions. The delay in the Stelvio launch underscores the challenges faced by automakers in balancing innovation with market realities and regulatory compliance.