With a two billion euros investment planned for 2025 and a commitment to keep all its Stellantis’s Italian plants open until 2032, the company aims to solidify its leadership in the European eMobility sector amid rising competition and weak demand for electric vehicles (EVs) in the region.
The announcement, made during a meeting in Rome with government officials, suppliers, and unions, signals a positive shift in Stellantis’ relationship with the Italian government.
Adolfo Urso, Italy’s Industry Minister, pledged over one billion euros in 2024 to strengthen the country’s automotive supply chain, while the automaker confirmed that its investments will not require public funds.
Jean-Philippe Imparato, Stellantis’ Head of European Operations, stated that the plan will guarantee production assignments for all Italian plants over the next nine years.
New investments will focus on hybrid and electric models tailored to market demand.
New models and platforms to lead electrification
Key projects include the production of at least two compact models at the Pomigliano plant in southern Italy, using the new “STLA Small” platform starting in 2028.
Additionally, production of the popular Fiat Panda city car will be expanded, showcasing Stellantis’ strategy to strengthen its compact segment offerings.
At the Melfi plant, production volumes are expected to triple with the addition of hybrid versions of the Jeep Compass, Lancia Gamma, and DS7, three mid-sized models planned for the facility.
Meanwhile, the Cassino plant, in central Italy, will focus on Alfa Romeo models, including hybrid versions of the SUV Stelvio and the Giulia sports sedan, which were initially designed as fully electric vehicles.
This flexibility highlights Stellantis’ pragmatic approach, acknowledging the slow global adoption of electric vehicles and the need for hybrid alternatives to capture greater market share.
A challenging context for the European auto industry
Stellantis’ plan comes amid challenging times for the European automotive industry, characterized by competition from Chinese manufacturers, regulatory uncertainty, and weak demand for EVs.
Stellantis’ production in Italy is estimated to drop below 500,000 units this year, compared to 751,000 in 2023, according to data from the FIM-Cisl union.
Imparato was cautious about long-term production targets, noting that achieving ambitious figures, such as one million vehicles in Italy, will depend on market response.
Italy strengthens its commitment to sustainable mobility
The Italian government is also aligning its efforts with the automotive sector’s goals.
In recent months, Italy has allocated over 5.5 billion euros in European funds to reindustrialize the automotive sector, with a fourth call under the Perte VEC III program already in the pipeline.
With this new plan, Stellantis reaffirms its commitment to electrification, demonstrating that public-private collaboration is key to advancing a more sustainable future in the European automotive industry.
