Italy invests billions to revive Stellantis factory output
Stellantis is a key player in the Italian automotive industry. Unfortunately, in recent years, the local factories have not been performing well. This is set to change due to a concrete plan.
The management at Stellantis is not idling and has moved to immediate action following the departure of the former CEO, Carlos Tavares. On 17 December 2024, a meeting took place with representatives of the Italian government and trade unions to discuss the future of the company's factories.
The Italian industry minister, Adolfo Urso, announced that Italy will spend over a billion euros to support its automotive sector, putting an end to strained relations with Stellantis.
The head of European operations at the company, Jean-Philippe Imparato, promised that the company will keep all Italian plants operational, and from 2026 onwards, it will increase production by introducing new models. He added that in 2025 alone, the company will invest 2 billion euros in Italy.
In 2028, production of at least two compact models based on the STLA Small platform is to begin at the Pomigliano factory. Meanwhile, in Melfi, southern Italy, SUVs using the STLA Medium platform - Jeep Compass, Lancia Gamma, and DS7 - will be manufactured.
Stellantis has also devised a plan for the Mirafiori factory, which produces the electric Fiat 500 and struggles with cyclical shutdowns due to weak demand. A hybrid version is soon to be added to the electric lineup.
Stellantis employs about 40,000 people in Italy, making it the largest and essentially the only car manufacturer in the country. In the past, relations between the company and the government were not ideal. Italian politicians repeatedly accused Carlos Tavares of neglecting their industry. It is hoped that things will be different now.
