Stellantis Announces New Vehicle Model in Italy

Investing.com — Stellantis (NYSE:STLA), the parent company of Fiat (BIT:STLAM) and Alfa Romeo, is set to announce a new mass-market vehicle model as part of a long-term production strategy in Italy, according to Reuters, citing sources. The plan will be presented to the Italian government on Tuesday and includes production of the new model at either the Pomigliano d'Arco plant near Naples or a facility in Cassino, south of Rome.

This announcement follows months of tense relations between Stellantis and the Italian government. Industry Minister Adolfo Urso will host a meeting with the automaker, suppliers, and trade unions in Rome at 1300 GMT to finalize the plan.

The production strategy also aims to increase the number of hybrid models manufactured in Italy by Stellantis, while fully electric vehicles are expected to be produced in smaller volumes over the next few years.

The relationship between Stellantis and Italy's right-wing government has shown signs of improvement since the sudden resignation of Stellantis CEO Carlos Tavares earlier this month. He was frequently criticized by Italian politicians for allegedly neglecting the country’s historic manufacturing sites and moving the production of new Fiat and Alfa Romeo models overseas.

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