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18 December 2024

Stellantis Unveils Major Investment Plans For Italy

Carmaker commits €2 billion to boost production and maintain factories.

Stellantis, the multinational automotive corporation, has outlined ambitious plans to boost its presence and production capabilities across Italy, signaling the end of tense negotiations with the Italian government

During a recent meeting with Italy's Industry Minister, Adolfo Urso, Stellantis’ European operations chief, Jean-Philippe Imparato, revealed the company’s commitment to invest €2 billion (approximately $2.1 billion) by the year 2025.

This investment is part of the larger strategy where Stellantis will maintain all of its Italian factories and ramp up production by 2026, thanks to new model launches set throughout the next several years.

“Stellantis will keep all of its Italian factories open and increase output from 2026 thanks to the launch of new models,” stated Imparato, affirming the company’s resolve to strengthen its operations.

The announcement also carries significant financial backing from the Italian government, which has pledged to allocate €1.6 billion to bolster the country’s automotive supply chain. “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,” emphasized Minister Urso, highlighting Rome’s commitment to sustaining jobs and production within the sector.

Underlining the importance of Italy to Stellantis, Imparato indicated the automaker will not require additional public funds for its planned investments, instead affirming confidence based on expected production levels through 2032.

A focal point of Stellantis’ plan involves the Pomigliano d'Arco plant, which will see the production of at least two compact models, employing the new 'STLA Small' platform starting from 2028. The facility will also extend the production line for the aging Panda city car until 2030.

At the Melfi plant, production will include the Jeep Compass, Lancia Gamma, and DS7 offered both as fully electric vehicles (EVs) and hybrids, effectively tripling expected output. Imparato noted, “This will help triple expected production volumes for the facility.”

Meanwhile, the Cassino plant is set to manufacture the new Alfa Romeo Stelvio SUV and the Giulia sport sedan, originally planned as EVs, but now could also include hybrid versions to meet consumer demand.

Further developments at the Mirafiori complex, the historic home of Fiat, include plans to produce hybrid variants of the iconic 500 city car by late 2025, marking another step toward modernization. “Stellantis will establish its headquarters for its European operations in Mirafiori,” added Imparato, showcasing the strategic importance of this site.

At the Atessa plant, production has recently begun on large EV vans, contributing to the comprehensive shift toward electrification across Stellantis’ offerings.

Interestingly, plans for the Termoli plant include potential reassessments following potential transformations of the existing engine facility to become a gigafactory based on market trends.

Imparato’s insights on the Modena plant indicated it would pivot to become Stellantis’ hub for high-end vehicle production, joining the ranks of its luxury Maserati brand with unconfirmed plans for revamping the brand’s strategies.

This extensive investment and production overhaul embody Stellantis’ response to recent industry challenges, reinforcing its dedication to Italy's automotive legacy. With the planned upgrades, Stellantis hopes to not only thrive within Italy’s automotive sector but also play a pivotal role within the broader European market.

The steps taken by Stellantis reflect strategic foresight, aligning corporate goals with governmental support, and suggest potential for significant growth and job creation within the Italian automotive industry.

Looking forward, as Stellantis embarks on this pivotal phase, the combined efforts of the automaker and the Italian government may well herald a new era of collaboration and revitalization for Italy's car manufacturing sector.

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