Netherlands-headquartered Stellantis has launched a plan aimed at revitalising its manufacturing footprint in Italy, despite the challenging market environment for the European automotive sector, reported Reuters.
The company’s strategy, which includes the launch of new models and increased production from 2026, seeks to strengthen its presence in the country and address the tensions with the Italian government that have persisted over recent months.
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Italy Industry Minister Adolfo Urso, who hosted a meeting with Stellantis executives, suppliers, and trade unions in Rome, welcomed the proposal.
The Italian government has pledged €1.6bn ($1.7bn) to support the automotive supply chain, with over €1bn allocated for 2025, the report said.
However, this support will not be used to subsidise car purchases, as was the case earlier in 2024.
Stellantis has assured that no public funds will be required for its planned investments, and the automaker will invest €2bn in Italy in 2025.
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By GlobalDataThe company, with around 40,000 employees in Italy, has committed to keeping all its local plants open and ensuring production until 2032.
While Stellantis did not commit to a long-discussed target of producing one million vehicles annually in Italy, Jean-Philippe Imparato, head of Stellantis’ European operations, expressed confidence that production numbers would rise if the market responded positively.
He added: “If the market responds, we will meet all the figures we have in mind.”
The new production strategy includes the introduction of at least two compact models at the Pomigliano plant in southern Italy, beginning in 2028, alongside the continued production of the Panda city car.
Stellantis also aims to triple production at its Melfi plant by adding hybrid versions of key models, including the Jeep Compass, Lancia Gamma, and DS7.
Additionally, hybrid variants of the upcoming Alfa Romeo Stelvio SUV and Giulia sport sedan are under consideration for production at the Cassino plant starting in 2025 and 2026, respectively.
