Stellantis soothes Italian government by keeping all factories open

With Carlos Tavares pushed out, the Stellantis car group is burying the hatchet and soothing the Italian right-wing Meloni government with new models to keep all Italian factories open until 2032. It won’t apply for government support, but it has committed to investing 2 billion euros next year and purchasing 6 billion euros from Italian suppliers.

After ending bonuses for purchasing zero-emission vehicles from next year, Italy’s Industry Minister, Adolfo Urso, nevertheless pledged on Tuesday to devote more than one billion euros in 2025 to support the struggling automotive industry. However, these funds will not be used for new car purchase incentives in 2025.

Relocating production

The Meloni government had criticized former CEO Carlos Tavares for relocating Stellantis’ production to low-cost countries, which detrimented Italian factories. Due to a lack of work, employees are on technical unemployment.

Now, Stellantis Europe boss Jean-Philippe Imparato, former CEO of Alfa Romeo, has outlined a plan to allocate new models to all factories, guaranteeing work up to 2032. Imparato said the automaker would invest €2 billion in Italy in 2025 alone, for a total of €10 billion since 2021.

STLA small electric platform from 2028

The southern Alfa Romeo Pomigliano d’Arco plant near Naples will get a new electric, compact Alfa Giulietta based on the new STLA Small platform starting in 2028. The current Fiat Pandina will be manufactured there until 2030, followed by a new generation Pandina. Another could be a compact Lancia Delta, as Lancia CEO Luca Napolitano suggested earlier for 2028.

In addition, three new models are planned for the Cassino plant in Piedimonte San Germano, three kilometers from the town of Cassino in the province of Frosinone, Southern Italy.

These would be larger models like the new Alfa Romeo Stelvio SUV starting next year and the Alfa Romeo Giulia sport sedan in 2026. Both would probably get hybrid versions, too. According to Reuters and ANEurope, a third model could be a new Alfa Romeo flagship or a replacement for the Maserati Quattroporte.

Flagship DS 8

From 2025, Stellantis plans to produce the new Jeep Compass, the new Lancia Gamma, and the new DS7 in Melfi (midway between Naples and Bari). It will also get the DS No. 8, the latest flagship model from the Stellantis’ premium DS brand, a full-electric midsize crossover with a maximum range of 750 km.

The Stellantis engine factory in Termoli on the Adriatic coast is predestined to become a giga-battery factory under the Automotive Cells Company’s (ACC) joint venture of Stellantis, Mercedes, and TotalEnergies.

However, in July, the group temporarily stopped constructing its European factories in Kaiserslautern, Germany, and Termoli, Italy, citing EV acceptance slowdown as one of the major reasons. Plans are still being ‘reassessed’ in the light of the evolution of market demand and technical progress.

The battery conglomerate is reconsidering its technology focus. Reports suggest ACC might switch to producing LFP (lithium-iron-phosphate) batteries, which are cheaper and more durable than the NMC (nickel-manganese-cobalt) batteries currently planned.