Alfa Romeo is considering establishing a U.S. assembly plant for the first time in its 113-year history. Setting up an American production base would help the company achieve its growth plan, says its CEO Jean-Philippe Imparato.

Alfa Romeo currently operates plants in Cassino (where it builds the Giulia and the Stelvio) and Pomigliano d’Arco (where the new Tonale is made). The carmaker is currently looking for more production capacity as it plans to introduce more models in the lineup, including a larger vehicle to sit above the current Giulia and Stelvio.

The company has made it no secret that it is considering building a new, bigger vehicle to compete with the likes of the BMW X5. Hinting that it could be made into a coupe, too, the brand’s E-segment vehicle could double up and fight with the X6, as well.

Read: New Alfa Romeo Giulia EV Coming After 2025, Quadrifoglio To Deliver Nearly 1,000 HP

 Alfa Romeo Considers Assembling EVs In America

“The first market in the world for E-segment is your market—the US. The second is China,” Imparato told Autoweek recently. “If I want to be the global premium brand for Stellantis, I must be everywhere in the world in terms of sales.”

Indeed, BMW makes the X5 in the U.S. and then exports it around the world. With a production base in the country, it may also help the automaker’s vehicle qualify for federal EV tax incentives.

Imparato says that the final decision on where its vehicle will be built has not yet been taken, but Larry Dominique, Alfa Romeo‘s senior vice president, and the head of its North American division, said that the plant will not be built from scratch. However, he hinted that Stellantis’ recently idled Belvidere, Illinois, plant is looking for something to make.

While it is possible that the vehicle in question will be an SUV, it is not yet certain. In fact, Imparato believes that electric vehicles (which every one of the brand’s vehicles will be after 2027) make great sedans because of their superior aerodynamics.

“So for me, electrification means the sedan is back. You will have an all-electric Giulia,” he said. “In the coming weeks we will freeze the Giulia’s next-generation design… I will bring a sedan (EV) on the market and probably not only one.”

Imparato and Alfa Romeo still have some time before they have to sort everything out for the E-segment vehicle, though. The new STLA-based vehicle is not expected to launch until 2027.

 Alfa Romeo Considers Assembling EVs In America