Stellantis, the multinational automaker formed from the 2021 merger of Fiat Chrysler and PSA Peugeot, is embarking on a significant investment initiative in Italy, committing a total of 8 billion euros ($8.4 billion) over the next year. This includes an allocation of 2 billion euros specifically for the Italian production facilities and an additional 6 billion euros dedicated to the supply chain. The announcement was made by Jean Philippe Imparato, the head of Stellantis’ European operations, during a meeting with a panel of government ministers focused on economic growth and labour development.
The timing of this announcement is noteworthy, as it follows the recent resignation of former CEO Carlos Tavares, who stepped down amid declining sales figures. Tavares' replacement will be a new executive committee led by Stellantis chairman John Elkann until a permanent CEO is appointed.
Speaking to the ministers, Imparato indicated that as of January, Turin will assume the role of the new headquarters for Stellantis' European operations, addressing concerns from Italian officials and labour unions regarding the potential shift of the company's operational focus away from Italy. This reassessment comes at a critical juncture, with Stellantis’ six manufacturing plants in Italy set to enhance production capabilities starting in 2026. The company is poised to introduce over a dozen new models by 2032, including a new city car, the Fiat Pandina, scheduled for production in Pomigliano d’Arco, near Naples, from 2028. Additionally, the iconic Mirafiori plant in Turin will commence the manufacturing of the 500 hybrid and full-electric powertrains, while plants in Melfi and Cassino will be outfitted for new hybrid models, including the Jeep Compass and Alfa Romeo Giulia.
Imparato acknowledged the challenges ahead for 2025, stating, “I won’t hide that 2025 will be a hard year, but all of the factories in Italy will be active.” This comment comes in light of the struggles faced by the company, including short-term layoff programs at various plants due to lagging sales, particularly for electric vehicles. Economic Development Minister Adolfo Urso attributed part of the production slowdowns to new European regulations that will require one-fifth of all cars produced from January 1 to be electric, with particularly severe penalties for non-compliance. Urso has called for reconsideration of these rules in the interest of supporting the automotive industry in Italy.
Stellantis is currently navigating a pivotal moment in its history amidst shifting market dynamics and regulatory frameworks, aiming to solidify its presence and adaptability in the evolving automotive landscape.
Source: Noah Wire Services