Stellantis, the multinational automaker formed from the 2021 merger of Fiat Chrysler and PSA Peugeot, has pledged nearly €2 billion to boost its Italian production in 2025. The investment, along with €6 billion allocated to the supply chain, was revealed during a meeting with Italian economic and labor ministers in Rome.
The announcement comes amid a leadership shakeup, with former CEO Carlos Tavares recently ousted following declining sales. Stellantis is now led by an executive committee chaired by John Elkann while a new CEO is sought.
During the meeting, Stellantis’ European chief Jean-Philippe Imparato assured officials and unions that the company remains committed to Italy. As part of this commitment, Stellantis will move its European operations headquarters to Turin in January, addressing longstanding concerns that the automaker’s center of gravity had shifted away from Italy since the merger.
Stellantis operates six factories in Italy, which will see the introduction of more than a dozen new models by 2032, including:
Imparato acknowledged that 2025 will be a challenging year as the industry faces stricter European Union regulationsrequiring 20% of all cars produced to be electric vehicles (EVs). Non-compliance will result in fines, adding pressure to ramp up EV production despite sluggish sales.
Italian factories have struggled with reduced demand for EVs, cycling through short-term layoffs to cope with production lulls. While unions welcomed Stellantis’ investment announcements, they expressed skepticism about the potential for immediate turnaround.
“There are not the conditions to say that we have entered a new phase," said Rocco Palombella, head of the Uilm union. "Perhaps a new phase in industrial relations, but not a new phase guaranteeing factories or saying the situation will improve from tomorrow."
The investment aims to secure the future of Stellantis’ Italian plants by focusing on hybrid and electric vehicle production, critical to meeting evolving EU standards. Through this initiative, Stellantis seeks to align its Italian operations with its global strategy to compete in the rapidly transforming auto industry.
While challenges remain, including the need to adapt to stricter regulations and fluctuating market demand, the company’s leadership emphasizes that all Italian factories will remain operational in 2025.
