MILAN (AP) — Automaker Stellantis will invest 2 billion euros ($2.1 billion) in Italian production next year and spend another 6 billion euros ($6.3 billion) in its supply chain, its head of European operations said Tuesday to a government panel.
Stellantis executives outlined the outlook for the Italian operations just weeks after the board forced former CEO Carlos Tavares to resign due to declining sales. He will be replaced by an executive committee led by Chairman John Elkann until a new CEO is appointed.
Stellantis, the fourth largest automaker in the world, was created from the merger of Fiat Chrysler and PSA Peugeot in 2021. Its fiscal base is in the Netherlands, but its headquarters are still located in Turin, Paris and Auburn Hills, Michigan.
Jean Philippe Imparato, Stellantis’ European chief, told economy, labor and economic development ministers that Turin would become the headquarters of the carmakers’ European operations from January. This addressed a concern among Italian officials and unions since the merger shifted the automaker’s center of gravity.
At a closed-door meeting, Imparato told ministers that Stellantis’ six car plants in Italy will ramp up production from 2026 with the launch of more than a dozen new models until 2032, the Stellantis media agency said.
New models include a new Fiat Pandina city car in Pomigliano d’Arco near Naples from 2028, while Mirafiori in Turin will provide the production base for the 500 hybrid and fully electric powertrains. Melfi and Cassino in southern Italy will receive new hybrid vehicles, including a new Jeep Compass and Alfa Romeo Giulia.
“I will not hide that 2025 will be a difficult year, but all factories in Italy will be active,” Imparato told a news conference after the meeting, which was also attended by unions, regional officials and industry representatives.
Economic Development Minister Adolfo Urso said that one of the reasons for the production standstill is the new European rules that come into effect on January 1, which state that one-fifth of cars produced must be electric vehicles, otherwise there will be high fines. He called for a change in the rules.
Factories in Italy are facing short-term layoffs due to sluggish sales, especially of electric vehicles.
