Can Alfa Romeo Compete With German Luxury Brands In The United States?

Alfa Romeo made its return to the United States in 2015, but its ambitious dream of going tire-to-tire with other European luxury brands fell flat. I've covered Alfa Romeo and its issues before, from dwindling sales to a rather paltry dealer network. While Alfa Romeo has been on the negative end of the North American news cycle for the better part of two years, the Italian brand might be able to compete with German luxury brands in the United States, provided it makes some major changes.

Alfa Romeo isn't completely done for

Italian automakers create some of the industry's most breathtaking designs, for better or worse, and Alfa Romeo is no exception. Their distinctive styling evokes an emotional response for some drivers. While stylish in their own right, the German brands tend to stick to more clinical, impersonal designs.

Several Alfa Romeo models, like the Giulia Quadrifoglio, have served as an alternative to mainstream performance cars in the past and became fast favorites of enthusiasts. The Italian automaker also emphasizes a refined steering feel and high levels of driver engagement that result in sporty handling across the range. Not only that, but Alfa Romeo models tend to be competitively priced compared to their German rivals.

German brands have distinct advantages

While Alfa Romeo may have some advantages, the German brands are still dominant. BMW, Audi, and Mercedes-Benz each have more than 300 active dealerships in the United States. While it's a smaller-volume luxury brand, Porsche still maintains over 200 dealerships. Alfa Romeo, on the other hand, has less than 100 active dealerships in the United States.

Thanks to their established brand reputations, German vehicles tend to maintain their value over time. Not only that, but almost every model year brings consistent updates across the range. Alfa Romeo lacks a strong reputation in the United States, likely due to its weak dealership presence. Due to their steep depreciation curve, Alfa Romeo models can be a bargain on the used market, although there are some exceptions for the more collectible models. The Italian automaker often skips annual updates, leaving some models feeling a little stale.

There's a staggering difference between the German luxury brands and Alfa Romeo when it comes to vehicle offerings in the United States. While BMW, Audi, and Mercedes-Benz maintain a full range of vehicles that include sedans, crossovers, SUVs, EVs, and hybrids, Alfa Romeo's current United States lineup consists of just three vehicles, the Tonale, Giulia, and Stelvio. While the Tonale is a new offering for the 2026 model year, the next-gen Giulia and Stelvio aren't expected to arrive until late 2027 or early 2028.

Perception is powerful

No matter what way you cut it, consumer perception of brands can last a lifetime. While these stereotypes exist for a reason, they may not always be true. In the United States, Alfa Romeo has a reputation for poor reliability, likely due to electrical problems and expensive repairs being commonplace in older models. Newer models, specifically 2020 and onward, aren't as prone to the same problems and are generally fairly reliable, although they do have more problems than Japanese luxury brands.

Much like the German luxury brands, Alfa Romeo vehicles require more maintenance than the average mainstream car. Even so, consumers don't hold the same perception about German brands. Part of that view is a result of the marketing by each individual automaker. Whereas BMW, Audi, and Mercedes-Benz spend heavily on branding in order to set themselves on a prestigious pedestal, Alfa Romeo has far less visibility. The Italian brand's advertising is rare, and a lack of dealerships, which double as billboards in a sense, doesn't help the matter.

There's something to be said for exclusivity, but at a certain point, it becomes a drawback rather than a point of pride. While BMW sold more than 388,000 vehicles in the United States last year, you don't see them literally everywhere like you do more mainstream brands. Rather, you see them just enough to make the brand a household name. Alfa Romeo sold less than a 1,000 vehicles in 2025, a volume that doesn't move the needle for most consumers when it comes to brand recognition.

Success isn't out of reach

Alfa Romeo has a few options that could pave the way to success in the United States, but each one requires major capital investment and time. It could lean into becoming a performance-luxury brand similar to the upper-end performance models offered by Audi and BMW. Alternatively, the Italian luxury brand could go a step further by becoming a lower-volume performance marque similar to Porsche.

No matter what way you cut it, there's no shortcut for Alfa Romeo to take in the United States. In order to compete with established German brands, the Italian automaker will need to invest heavily in all aspects of its presence, from dealerships to marketing to product line. In its current state, Alfa Romeo doesn't stand a chance against German rivals like BMW, Audi, and Mercedes-Benz, but that doesn't mean they can't turn things around.

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This story was originally published May 29, 2026 at 7:00 PM.