Alfa Romeo Scales Back Product Plans

Fiat Chrysler Automobiles NV’s Alfa Romeo unit is dropping two of the six new and updated models the brand planned to introduce over the next three years.

The revised plan scraps a proposed GTV coupe and all-new 8C supercar.

FCA boss Mike Manley tells analysts that Alfa Romeo is “significantly” scaling back the near-term rollout of new models. This would result in a corresponding reduction in capital spending, he points out.

The revised plan will in 2012 give the Giulia sport sedan and Stelivo crossover a mid-cycle freshening and launch a production version of the Tonale concept crossover that includes a plug-in hybrid option. An unnamed B-segment crossover—with an all-electric variant—will be added in 2022.

Leaked slides from Manley’s presentation describe the changes as a portfolio rationalization with efficient capital deployment. This will allow Alfa Romeo to focus on its current market strengths with reduced global reach and less overlap with other FCA group brands.

Alfa’s downsized plans come on the heels of yesterday’s announcement that FCA plans to merge with PSA Group. The companies expect to save €3.7 billion ($4.1 billion) per year by combining operations.