Stellantis has announced that starting in 2026, it will manufacture electrified dual-clutch transmissions (eDCTs) at its Termoli plant in southern Italy, with a target production of 300,000 units per year.
This move strengthens its hybrid vehicle lineup amid uncertainty surrounding the plant’s originally planned transition into an EV battery gigafactory under the ACC joint venture.
The Termoli facility, which currently produces internal combustion engines, was initially designated as one of three gigafactories in Europe for ACC (Automotive Cells Company), a joint venture involving Stellantis, Mercedes-Benz, and TotalEnergies.
However, ACC’s plans for gigafactories in Italy and Germany were put on hold in 2023 due to shifting market conditions and a transition toward lower-cost EV batteries amid weakening demand.
An ACC spokesperson confirmed that investment plans for Italy and Germany are still under review, with no final decision expected before June 2025.
Earlier this month, TotalEnergies CEO hinted that ACC should focus solely on its French gigafactory, raising concerns that the Italian and German plants might be scrapped altogether.
Strengthening Hybrid Powertrain Capabilities
While Stellantis’ announcement did not directly address ACC’s pending gigafactory plans, the decision to produce eDCTs at Termoli reinforces its commitment to hybrid technology.
The eDCT system, featuring an integrated 21 kW electric motor, enables internal combustion engines to remain off for up to 50% of urban driving cycles, significantly reducing fuel consumption and emissions.
With Termoli now joining Mirafiori (Italy) and Metz (France) as Stellantis’ third hybrid transmission manufacturing hub, the company is expanding its European production footprint.
To support the increased eDCT output, component manufacturing will also ramp up at Stellantis’ Sint-Truiden (Belgium) and Metz plants, with Metz set to receive a new assembly line.
This decision aligns with Stellantis’ strategic roadmap, which prioritizes the expansion of its hybrid vehicle lineup, including Mild Hybrid Electric Vehicles (MHEVs) and Plug-in Hybrid Electric Vehicles (PHEVs).
The company’s hybrid push also complements its long-term decarbonization commitments, as eDCT technology enhances fuel efficiency and lowers emissions.
Industry and Workforce Impact
Italy’s metalworker unions welcomed the announcement, noting that eDCT production at Termoli will secure employment for approximately 300 workers out of the 1,800 employees currently at the plant.
However, union leaders, including Gianluca Ficco from UILM, emphasized the need for long-term investment clarity, particularly regarding the stalled gigafactory project.
Despite the growing focus on hybrid technology, Stellantis remains engaged in battery-related projects, including a separate partnership with Chinese battery giant CATL.
However, the company’s investment priorities reflect a pragmatic shift, balancing electrification and hybridization in response to evolving market demand.
Future of the Termoli Gigafactory: Uncertain Path Ahead
While Stellantis’ decision to manufacture hybrid transmissions in Termoli ensures continued utilization of the facility, questions remain regarding its potential transformation into an EV battery gigafactory.
With ACC’s investment review ongoing and TotalEnergies signaling a focus on France, the prospects for Italy’s gigafactory remain uncertain.
As EV demand fluctuates and manufacturers reassess their battery strategies, Stellantis’ latest move underscores its flexible approach—leveraging hybrid powertrain technology while maintaining options for further electrification investments in the future.
