Alfa Romeo MiTo to evolve into small SUV

Fiat Chrysler Automotive (FCA) boss Sergio Marchionne has dropped more hints that the next-generation Alfa Romeo MiTo hatchback is set to be killed off and be replaced with an all-new SUV that will share its nameplate.

Speaking to press at the Geneva motor show, Auto Express reports, when questioned about the baby Alfa he said:

"If there is a MiTo [in the future], I don't think it will be in the [current] shape. The market has shrunk – two-door B-segment hatchbacks is a very shrinking market. It's got a limited practicality, so we have to be careful," said the FCA CEO.

Marchionne's remarks have been interpreted by commentators as meaning that Alfa Romeo will capitalise on the sales success of the Stelvio SUV by shrinking it when the time comes to replace the MiTo.

All will be revealed on June 1 when Marchionne maps out the famous Italian brand's future strategy to stakeholders in the car-maker.

The decision for the MiTo to switch to an SUV is highly likely since Alfa Romeo boss Reid Bigland previously announced that Alfa would switch its focus from Europe to Asia and North America where "small cars struggle to compete".

Confirming that re-focusing famous Italian brand on the biggest growth market -- SUVs -- Bigland told journalists that buyers "shouldn't be surprised to see something from Alfa Romeo in the largest markets".

As well as a small Audi Q3-rivalling SUV, which could be called the Kamal, Alfa Romeo is also rumoured to be readying a flagship 4x4 to sit above the Stelvio and compete with BMW's X5, potentially called the Castello.

Specifically tailored to American tastes, such a vehicle is likely to share a platform and powertrains with the Maserati Levante.

Both smaller and larger SUVs than the Stelvio, which is overdue for release in Australia, were listed for launch by 2020 in FCA's revised business plan in 2016.