Stellantis NV (STLA.MI) has revealed its intention to launch production of new compact electric vehicles in Italy starting in 2028, representing a strategic pivot toward cost-effective EV manufacturing across Europe. This development emerges as the automotive giant aims to bolster its standing in the expanding budget electric vehicle market while resolving disputes with Italian authorities regarding manufacturing obligations.
Key Takeaways
- Production begins 2028 at Pomigliano plant using STLA Small platform
- Part of €2 billion investment commitment to Italian operations
- Targets affordable small-car market across European markets
Production Strategy and Investment
The manufacturer behind Jeep and Ram brands will deploy its STLA Small platform at the Pomigliano facility located in southern Italy, with manufacturing operations set to begin in 2028 1. The site will manufacture a minimum of two compact electric models engineered for Europe’s value-oriented vehicle market.
This project represents a component of Stellantis’ comprehensive €2 billion ($2.1 billion) investment promise for Italian manufacturing facilities throughout 2025 2. The corporation has guaranteed to maintain operations at all Italian plants until 2032, responding to governmental concerns regarding production volumes.
Market Context and Platform Details
The STLA Small platform marks Stellantis’ entrance into the economical EV sector, engineered for B- and C-segment vehicles featuring various powertrain configurations including battery electric, hybrid, and traditional combustion engines 3. This platform possesses the capability to support as many as two million vehicles per year across Stellantis’ global manufacturing network.
European car manufacturers are progressively concentrating on budget-friendly electric vehicles as sales expansion underwhelms in premium market segments. This strategy corresponds with wider industry initiatives to challenge Chinese producers who have captured substantial market share through aggressively priced electric vehicle offerings.
Government Relations and Production Commitments
Jean-Philippe Imparato, chief of Stellantis’ European division, validated the manufacturing commitments during discussions with Italian Industry Minister Adolfo Urso and labor union officials in December 2024 4. The Italian administration has committed €1.6 billion to bolster the automotive supply infrastructure, with more than €1 billion designated for 2025.
“If the market responds, we will meet all the figures we have in mind,” Imparato said regarding production volume targets.
Broader Manufacturing Plans
In addition to the Pomigliano facility, Stellantis detailed comprehensive production strategies across its Italian manufacturing network. The Cassino plant will manufacture three models utilizing the STLA Large platform, featuring upcoming Alfa Romeo Stelvio and Giulia variants launching in 2025 and 2026 respectively 5.
The Melfi manufacturing site will produce seven new models employing the STLA Medium platform, encompassing electric variants of the Jeep Compass and Lancia Gamma. Production enhancements are anticipated to triple facility output relative to present levels.
Industry Challenges and Outlook
Stellantis’ Italian manufacturing decreased 37% in 2024 to merely 475,090 vehicles, marking a 68-year nadir for the nation’s automotive production 6. This reduction mirrors extensive challenges confronting European car manufacturers, encompassing sluggish electric vehicle demand and intensified competition from Chinese producers.
The company’s dedication to compact EV manufacturing signifies a strategic reorientation toward more accessible electric transportation solutions. Achievement will hinge on market reception of budget-friendly electric models and the company’s capacity to realize competitive production expenses.
Not investment advice. For informational purposes only.
References
1Reuters News (December 17, 2024). “Stellantis to boost production in Italy with new compact models”. Automotive News. Retrieved May 19, 2026.
2Jaelyn Campbell (December 18, 2024). “Stellantis commits to Italy with multi-billion euro investment in EV expansion”. CBT News. Retrieved May 19, 2026.
3“Our Vehicle Platforms”. Stellantis. Retrieved May 19, 2026.
4“Stellantis plans to boost production” (December 18, 2024). Just Auto. Retrieved May 19, 2026.
5Carla Westerheide (December 19, 2024). “Stellantis to invest €2 billion in Italian plants”. electrive.com. Retrieved May 19, 2026.
6Robert S. Miller (January 5, 2025). “Stellantis Italy Production Hits 68-Year Low in 2024”. MoparInsiders. Retrieved May 19, 2026.