The replacement for the Alfa 145/6, the Alfa 147 was released at the Turin Auto show in June 2000. It uses a chassis derived from the Alfa 156. The wheelbase has been shortened slightly, while the suspension, both front and rear, remain the same as in the 156. The twin spark engines are used, comprising of  a 1598cc unit (105bhp) and a 2000 (150bhp) unit. There is also a 1.9 liter diesel.

The 2 liter TS version, uses the Selespeed transmission as standard, while the other cars get a conventional five-speed manual unit. Initial release was of the three-door car only. The five door car, which features semi-concealed rear door handles as on the 156, was introduced in spring 2001 and in November 2000 the Alfa 147 was named the European Car of the Year.

September 2002 saw the Alfa 147 GTA launched at the Paris Auto show. It uses a 24V 3.2-litre V6 engine and six-speed gearbox, while the body features a small rear spoiler, larger wheel arches, new front and rear bumpers and larger wheels. Both the front and rear suspension have been modified to cope with the extra performance, as have the cooling system, clutch, drive shafts and brakes.
The Paris Auto show 2004 saw the face lifted Alfa 147 emerge. The 147 received the new Alfa corporate nose, with a wider grille and new headlights as well as slightly revised tail-lights.