Further delays to the long-awaited introduction of new Alfa Romeo models are all the fault of China, according to Fiat Chrysler chief Sergio Marchionne.

Vehicle sales in the country have nosedived as have any FCA profits from China which is viewed by Marchionne as a major market for the Alfa brand.

He told a Geneva press conference that all the underpinnings and engines are ready for new models but signing off the top hat has been delayed.

"Things have changed in China and that has impacted Alfa Romeo which means that Europe and the US are the only markets open to us. What's more, the ability to launch the car with integrity is more important that when we launch it. The brand has historically failed to meet its traditions."

Contrary to FCA's own predictions, markets in Latin America have fallen while the US is on a roll, particularly with large SUVs. However, Marchionne said that production volumes have been adjusted accordingly and "we will still make the (financial) numbers. As for China, it is going through a pile of readjustment – it will be fine in the long term".

The Fiat chief said the diesel scandal in which Volkswagen is embroiled in the US had impacted FCA and other automakers.

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"It is taking up a lot of management time going through the software codes in a very detailed way to make sure that we are properly compliant. When there is a breach in the system there will be an over-reaction which is justified. The reputation of the industry has suffered.

In response to PSA's announcement of 'real world' fuel and emissions figures, Marchionne said FCA would not be following suit.

"Rather than everyone going off in different directions we need to push Brussels to come forward with some uniformity and clarity. Let's all agree what the rules are."