Stellantis to add new models to avert Italy auto sector crisis

Stellantis NV announced on Tuesday that it will produce new vehicle models in Italy as part of its efforts to reverse a significant reduction in car production that had angered unions and the government.

Stellantis to add new models to avert Italy auto sector crisis

The company confirmed that no plants in Italy will be closed, and production capacity will increase by 2026, supported by the introduction of new models, according to Jean Philippe Imparato, head of Stellantis’ expanded Europe region. As part of the plan, Stellantis will produce a new generation of Fiat 500s at its Mirafiori plant in Turin and will also start manufacturing vehicles on a new platform at its Pomigliano facility in southern Italy. These developments were announced during discussions with unions and Industry Minister Adolfo Urso in Rome.

Government investment

The Italian government, led by Prime Minister Giorgia Meloni, has committed to investing over €1 billion ($1.1 billion) in the sector for 2025. Stellantis Chairman John Elkann aims to reverse the decline in car production that has threatened around 40,000 jobs in Italy. While European automakers face challenges from slower EV demand and increased competition from China, Italy's situation was worsened by former CEO Carlos Tavares’ decision to shift production of certain Stellantis models to lower-cost countries like Poland. Meanwhile, Volkswagen AG is in negotiations with unions about a plan that could involve shutting down plants in Germany.