Stellantis Negotiates Cig for Transition and Production in Italy
The unveiling of the new DS Number 8, a coupe SUV, marks a significant development for Stellantis NV as it aims to boost production in Italy to one million cars by 2030. This model is being presented today in Paris and will be assembled in Melfi, Italy, highlighting Stellantis’ commitment to revitalizing its production line in the country.
An agreement is poised to be announced next Tuesday between Stellantis and the Italian government. This agreement is expected to feature a substantial allocation of state aid, amounting to a billion euros, along with a redundancy fund designed to cushion the automotive transition. Stellantis will focus on enhancing hybrid production alongside its electric offerings.
The Italian automotive sector is currently facing a challenging period with forecasts projecting production levels at 400,000 units by 2024 and vehicle registrations dropping below 1.8 million. These figures remain significantly below the pre-pandemic benchmarks, reflecting a critical period for the industry.
A potential game-changer could emerge from the EU, where discussions are ongoing about altering the timeline for the ban on traditional combustion engines from 2035, alongside a suspension of emission penalties starting in 2026.
Today, Stellantis is scheduled to meet with labor unions; however, the more pivotal announcements are expected on Tuesday at the Ministry of Economic Development (Mimit). The Italian government appears prepared to enhance the component fund and guarantee employment protection measures through 2025.
Stellantis will lay out its strategy to escalate production levels, with several key initiatives detailed across its Italian facilities. At the Mirafiori plant, the introduction of the 500 hybrid is foreseen, complemented by bolstered production of Maserati models. The Cassino site will welcome electric variants of the Stelvio and Giulia, supported by hybrid options. Melfi is poised to house five different models, including the DS 8 and the new Lancia Gamma.
Furthermore, Stellantis plans to refine its commercial strategies, offering incentives and discounts to promote electric vehicles, thereby driving up sales and supporting its ambitious production goals.
This strategic move by Stellantis not only underscores its dedication to boosting production in Italy but also aligns with broader efforts to adapt to an evolving automotive landscape characterized by the shift towards electrification and sustainable technology.
