Italy's Alfa Romeo Delays Return To US

--Launch of three new models in the U.S. delayed

--Large SUV cancelled, replaced by large sedan

--2011 Sales Target Cut By 10,000 Units

(Adds details in 2nd, 4th paragraphs, sales target cut in 3rd paragraph, background in 8th, 9th paragraphs)

FRANKFURT -(Dow Jones)- Italian sports-car maker Alfa Romeo has postponed the launch of three new models by almost two years, including the Giulia sedan which was supposed to help mark its anticipated return to the U.S., according to a presentation Wednesday.

Alfa Romeo, whose revival is being engineered by its owner, Italy's Fiat SpA (F.MI), has also canceled plans to make a large sports utility vehicle, or SUV, replacing it with a large sedan that could be built on a platform by Chrysler Group LLC, Fiat's U.S. partner. All of the models are planned for the U.S., a big market that could be key to the brand becoming profitable again.

Alfa Romeo also cut its sales target for 2011 by 10,000 units to 155,000, according to the presentation, which was made by the brand's head, Harald Wester, at a conference hosted by UBS AG (UBSN.VX) on the sidelines of the Frankfurt motor show. It was later posted on Fiat's website. The target is still higher than the 115,000 units sold in 2010.

Fiat Chief Executive Sergio Marchionne, who holds the same title at Chrysler, had said in April the launch of the Giulia could be postponed by a few months because he was not happy with its design. The presentation, however, shows that it will come out in 2014, nearly two years later than originally planned. A station wagon version of the Giulia is also in development.

Two further models are also due to launch in the U.S. The two-seater 4C GTA--the first model Alfa Romeo is bringing to the country--will go to market a year later than 2012, as previously planned; and a midsize SUV, due in 2013, also a year later.

The midsize SUV is due to be built alongside a new SUV model for Chrysler's Jeep brand at the Mirafiori plant in Turin, Fiat's home town in northwest Italy. But Fiat has suspended the plant's refurbishment due to an unresolved dispute with a workers' union.

The launches were also delayed because Fiat has yet to decide where to manufacture some of the other models.

Reasons for the downward revision of the sales target and the replacement of the larger SUV with a large sedan weren't given in the presentation.

Fiat has been working for years to revive Alfa Romeo. It has rejuvenated its product offering with two relatively new models--the MiTo compact and the Giulietta hatchback--and worked on improving its sales network and after-sales service. Its aim is to position the brand slightly below the premium end of the market.