Stellantis, the multinational automotive company, has recently reached an agreement with the Italian government to increase its annual production in Italy to 1 million units. This move comes as Stellantis aims to expand its operations and boost its presence in the country.
The agreement was reached during a meeting between Stellantis CEO Carlos Tavares and Italy’s Industry Minister Adolfo Urso in Rome. The deal is expected to be signed by the end of July, and it will pave the way for Stellantis to add a fifth model at its Melfi plant in southern Italy.
In recent years, Stellantis has produced fewer than 700,000 vehicles in Italy annually. This is a significant decrease compared to the time before its merger with the PSA Group in 2021 when Fiat Chrysler alone produced over 1 million units in a single year.
The addition of a fifth model at the Melfi plant is expected to help Stellantis increase its production volume in Italy. The FIM-CISL union reports that the company is likely to produce as many as 800,000 vehicles in Italy this year. This is a positive development for the Italian automotive industry, which has been facing challenges in recent years.
Carlos Tavares expressed his confidence in the agreement, stating that it will reverse the downward trend in production volumes and pave the way for the production of 1 million vehicles in Italy. He emphasized the need for a collaborative approach and a team spirit to support the energy transition and maintain freedom of movement for Italian citizens.
The five models to be built at the Melfi plant will include four high-value premium models for foreign brands and one Italian model based on the STLA M platform. Stellantis is committed to considering the affordability of cars for Italian consumers, complying with regulations like Euro 7 on the Fiat Panda, and providing incentives to maintain Italy’s competitiveness.
Stellantis has its Italian headquarters in Turin and is making significant investments in the country. The company is establishing a new Green Campus at the Turin site and plans to open its Battery Technology Center in the second half of this year. This center will play a crucial role in the development of electric vehicles and battery technology.
Additionally, the Turin site will house an advanced facility for the production and supply of dual-clutch transmissions for Stellantis’ future range of hybrids and plug-in hybrids. These investments highlight Stellantis’ commitment to innovation and sustainability in Italy.
The agreement between Stellantis and the Italian government is a positive step for both parties. It will not only boost Stellantis’ production volume in Italy but also contribute to the growth and competitiveness of the Italian automotive industry. With a focus on affordability, regulations, and incentives, this partnership aims to create a sustainable and successful future for the automotive sector in Italy.
In conclusion, Stellantis’ agreement with the Italian government to increase annual production in Italy to 1 million units is a significant development for the company and the Italian automotive industry. With the addition of a fifth model at the Melfi plant and a focus on affordability and sustainability, Stellantis aims to strengthen its presence in Italy and contribute to the country’s economic growth.