Alfa Romeo plans to manufacture its first compact sport-utility vehicle and a sedan, referred to as Giulia, at its Cassino plant near Rome, Sergio Marchionne, Fiat Chrysler CEO, said.

Bloomberg said both models would be based on a rear-wheel-drive technology named 'Giorgio'. Alfa Romeo plans to present the sedan on 24 June at its museum outside Milan while the SUV is expected to be introduced in 2016, according to sources familiar with the matter.

Alfa Romeo's product expansion forms a part of Fiat Chrysler's plan to boost sales to 7m vehicles in 2018. The brand plans to launch eight new models by 2018, as it aims to increase sales to over 400,000 cars.

IHS Automotive expects Alfa Romeo to deliver around 200,000 cars in 2018.