Stellantis to Begin Small EVs in Italy by 2028

Stellantis NV (STLA.MI) has revealed intentions to initiate manufacturing of new compact electric vehicles in Italy starting in 2028, representing a strategic pivot toward cost-effective EV production in Europe. This development emerges as the automotive giant aims to bolster its competitive stance 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 manufacturing site in southern Italy, with operations set to begin in 2028 ¹. The location will manufacture a minimum of two compact electric models engineered for Europe’s budget-conscious vehicle market.

This project represents a component of Stellantis’ comprehensive €2 billion ($2.1 billion) investment promise for Italian manufacturing facilities in 2025 ². The corporation has guaranteed to maintain operations at all Italian plants until 2032, responding to governmental concerns regarding production capacity.

Market Context and Platform Details

The STLA Small platform signifies Stellantis’ entrance into the economical EV market, engineered for B- and C-segment vehicles featuring various powertrain configurations including battery electric, hybrid, and internal combustion engines ³. This platform possesses the capability to accommodate up to two million vehicles per year across all Stellantis manufacturing locations.

European automotive companies are progressively concentrating on budget-friendly electric vehicles as sales expansion underperforms in premium segments. This strategy corresponds with industry-wide initiatives to rival Chinese producers who have captured substantial market presence through cost-competitive electric vehicle offerings.

Government Relations and Production Commitments

Jean-Philippe Imparato, leader of Stellantis’ European operations, validated the manufacturing commitments during discussions with Italian Industry Minister Adolfo Urso and labor union delegates in December 2024 ⁴. The Italian administration has promised €1.6 billion to bolster the automotive supply chain, 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

Extending beyond the Pomigliano location, Stellantis detailed comprehensive manufacturing strategies across its Italian facilities. The Cassino plant will manufacture three models utilizing the STLA Large platform, encompassing next-generation Alfa Romeo Stelvio and Giulia variants beginning in 2025 and 2026 respectively ⁵.

The Melfi production facility will produce seven new models employing the STLA Medium platform, incorporating electric variants of the Jeep Compass and Lancia Gamma. Manufacturing increases 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, constituting a 68-year minimum for the nation’s automotive production ⁶. This reduction mirrors extensive challenges confronting European automakers, encompassing sluggish electric vehicle demand and intensified competition from Chinese producers.

The company’s dedication to compact EV manufacturing demonstrates a strategic redirection toward more accessible electric transportation solutions. Achievement will rely on market reception of affordable electric models and the organization’s capacity to attain competitive production expenses.

Not investment advice. For informational purposes only.