The model, described as a spiritual successor to the 147 and Giulietta, will ride on the new STLA One architecture and offer fully electric and hybrid powertrains.
This move suggests Stellantis may have shifted resources from Lancia to Alfa Romeo for the compact segment.
The Lancia Delta has a storied history.
The first generation, designed by Giugiaro, launched in 1979 and dominated World Rally Championship, winning six consecutive constructors' titles from 1987 to 1992.
The road-going HF Integrale versions became collector's items.
The second generation (1993-1999) was based on the Fiat Tipo platform, and the third generation (2008-2014) shared DNA with the Fiat Bravo and Alfa Romeo Giulietta.
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Production ended in 2014, leaving Lancia with a single model. Hopes for a fourth-generation Delta emerged in 2021, but the latest developments leave its future uncertain.