Alfa Romeo unveils first SUV crossover

Alfa Romeo is trying to revive its appeal with Americans and improve profitability by introducing its first sport utility vehicle (SUV).

The mid-sized Stelvio, which aims to deliver on the company’s long-standing promise to challenge luxury rivals including BMW, makes its debut at the Los Angeles Auto Show.

The Stelvio is vital to Alfa Romeo parent Fiat Chrysler Automobiles' plan to sell higher-margin, upscale cars and comes as car sales in the US, Fiat's biggest market, started to slip after six straight years of gains.

"The Stelvio has all the ingredients to eventually become Alfa Romeo's best-seller," said Ian Fletcher, analyst for IHS Automotive. "To do it right, the SUV should really feel like a premium product with an Italian flair."

Fiat chief executive Sergio Marchionne wants to rebuild Alfa Romeo's upscale reputation after its line-up shrank and sales collapsed, and previous attempts to expand beyond Europe were delayed.

Slowing growth

The Stelvio’s American debut is critical to the brand’s revival, especially as the Italian car maker, which generates the majority of its profit in

North America

, is bracing for slowing growth in the US by shifting production to higher-margin pickup trucks and SUVs.

Named after the highest paved mountain pass in the eastern Alps with dizzying hairpin turns, the Stelvio is due to hit shops next year and will compete in a crowded segment of mid-sized SUVs dominated by the best-selling Audi Q5 and BMW X3.

The Stelvio is Alfa Romeo’s third US offering, following its re-entry into that market two years ago with the 4C sports car and the recent Giulia saloon.

As part of a new eight-vehicle line-up that’s due by 2020 – two years behind schedule – Alfa Romeo may unveil a version estate of the Giulia at the end of next year and also expects to release a new flagship saloon in 2018.

– Bloomberg