Jean-Philippe Imparato, head of Stellantis’ European operations, told the meeting that the plan would ensure that all Stellantis plants in Italy would receive production quotas by 2032 and that no public funds would be required for the planned investment.

Imparato also added that Stellantis will invest 2 billion euros in Italy in 2025 alone. Stellantis is the only major car manufacturer in Italy and employs around 40,000 people in the country.

Relations between Stellantis and the Italian government have improved rapidly following the abrupt resignation this month of Carlos Tavares, Stellantis’ chief executive.

However, Imparato said he could not commit to a long-term goal of producing 1 million cars in Italy. It is understood that the two sides have held several discussions on this goal. Imparato told a media conference after the meeting: “If the market gives a reaction, we will achieve all the targets set.” I don’t want to make promises I can’t keep.”

According to estimates by the FIM-Cisl union, car production in Italy, including passenger cars and vans, will fall below 500,000 this year from 751,000 in 2023.

Stellantis’ new plans include building at least two compact models at its Pomigliano plant in southern Italy, which will use the new “STLA Small” platform from 2028, while continuing production of the older Panda city car, Imparato said at the meeting.

Imparato also said the Stellantis group plans to triple projected production at its plant in Melfi, southern Italy, by adding hybrid versions of three midsize models, the Jeep Compass, Lancia Gamma and DS7.

Imparato said the company is also considering hybrid versions of the new Alfa Romeo Stelvio SUV and Giulia sports sedan (initially only electric versions are planned), which will be produced at the Cassino plant in central Italy in 2025 and 2026.

As global demand for pure electric vehicles remains weak, sales of hybrid models are expected to rise.