ABBO News

How Does Stellantis Plan to Revive Its Italian Production

How Does Stellantis Plan to Revive Its Italian Production?

On Tuesday, Stellantis (NYSE: STLA), the carmaker, announced a plan to revitalize its output in Italy during a meeting with Industry Minister Adolfo Urso and representatives of suppliers and trade unions, drawing a line under months of fraught relations between the government and Fiat-maker Stellantis.

Following are the main points set out by Jean-Philippe Imparato, head of the carmaker’s European operations.

OVERALL PLAN

Stellantis (NYSE: STLA) will keep all of its Italian factories open and increase output from 2026 thanks to the launch of new models. All Stellantis plants in Italy will have production allocations until 2032 and will not require public funds for planned investments.

Imparato said the automaker would invest 2 billion euros ($2.1 billion) in Italy in 2025 alone. He added that Stellantis invested a total of 10 billion euros in Italy during the 2021-2025 period.

GOVERNMENT

Italy’s Industry Minister Adolfo Urso pledged the government would spend 1.6 billion euros to support Italy’s automotive supply chain, with more than one billion euros to be made available next year.

Funds from Rome will not be used for new car purchase incentives in 2025, as happened this year.

POMIGLIANO D’ARCO PLANT

Stellantis (NYSE: STLA) will produce at least two compact models at the facility in southern Italy, where the automaker will introduce its new ‘STLA Small’ platform from 2028.

The group will also extend the production of the old Panda city car in Pomigliano until 2030 and will assign the next generation of the vehicle to the same plant.

MELFI PLANT

Jeep Compass, Lancia Gamma, and DS7 – three of the mid-sized models scheduled to be produced at the southern Italian plant, starting from 2025 – will be made in both fully electric (EV) and hybrid versions. This will help triple expected production volumes for the facility, Imparato said.

The plant will also manufacture in Melfi the DS8 model, in an EV version only.

CASSINO PLANT

Stellantis (NYSE: STLA) will build three large-sized models at this plant in central Italy, including the new Alfa Romeo Stelvio SUV from next year and the Alfa Romeo Giulia sport sedan in 2026. They will be followed by a further top-end model.

Initially planned only as EVs, Alfa Romeo’s Stelvio and Giulia are now also being considered for hybrid versions, Imparato said.

MIRAFIORI COMPLEX

Stellantis reiterated a hybrid version of the 500 city car will be manufactured at the Turin facility, home of Fiat, from late 2025. The next generation of this model will be produced at the plant here until 2032-2033.

The group is considering increasing eDCT gearbox production at the complex from 600,000 units a year to 900,000 units annually.

Stellantis will establish its headquarters for its European operations in Mirafiori.

ATESSA VAN MAKING PLANT

The plant in the Abruzzo region, central Italy, started producing large EV vans late this year under the Fiat Professional, Peugeot, Citroen, and Opel/Vauxhall Movano brands.

A new version of the Stellantis large van is scheduled in 2027.

TERMOLI PLANT

ACC, the battery-making JV where Stellantis (NYSE: STLA) is the largest investor, continues to reassess a plan to transform the engine-making facility into a gigafactory, based on technology evolution, market demand, and Italy’s general production conditions.

Earlier this year, ACC stalled an initial plan to develop two gigafactories, in Italy and Germany, while operations have started already at its gigafactory in France.

MODENA PLANT

The plant, home of Maserati, Stellantis luxury brand, will become the group’s hub for ‘high end’, Imparato said, without giving further details about plans to revive the ailing Maserati brand.

($1 = 0.9523 euros)