Stellantis commits to invest $2.1 million in Italian production by 2025

MILAN (AP) — Stellantis automaker will invest 2 billion euros ($2.1 billion) in Italian production next year and another 6 billion euros ($6.3 billion) in its supply chain, the head of its European operations told a government panel on Tuesday. Dollar).

Stellantis executives laid out the outlook for the Italian business just weeks after the board forced former CEO Carlos Tavares to resign over falling sales. Pending the appointment of a new CEO, the Executive Committee, led by Chairman John Elkann, will succeed him.

Stellantis is the world’s fourth-largest automaker, formed in 2021 from the merger of Fiat Chrysler and PSA Peugeot Citroën. Its financial base is in the Netherlands, but its headquarters remain in Turin, Paris and Auburn Hills, Michigan.

Stellantis Europe president Jean Philippe Imparato told the Economy, Labor and Economic Development Minister that Turin will become the headquarters of the carmaker’s European operations from January, addressing concerns of Italian officials and unions , as the merger shifts the focus of the automakers.

Imparato told ministers in a closed-door meeting that Stellantis’ six car-making plants in Italy will increase production starting in 2026 and launch more than a dozen new models by 2032, according to Stellantis’ media office.

New models include the new Fiat Pandina city car, which will be built in Pomigliano d’Arco near Naples from 2028, while Mirafiori in Turin will form the basis for the production of 500 units with hybrid and fully electric powertrains. Melfi and Casino in southern Italy will get new hybrid cars, including the new Jeep Compass and Alfa Romeo Giulia.

“I won’t 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 included unions, regional officials and industry representatives. .

Economic Development Minister Adolf Urso said one of the reasons for the stalled production was new European regulations that came into effect on January 1, requiring that one fifth of cars produced must be electric or face stiff fines. He called for a change in the rules.

Factories in Italy have been implementing short-term layoff plans as sales lag, especially of electric vehicles.