One of Detroit's Big Three automakers; the multinational Stellantis (STLA) is trying to patch up its relationship with the Italian government, as the country attempts to ramp up its domestic auto production.
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According to a statement released by the automaker, CEO Carlos Tavares has met with union leaders in Turin to share some insight on flexible manufacturing methods to adapt to "uncertain electrification trends."
In the same meeting, the CEO revealed that the automaker is building a new hybrid versions of its cars at different plants in Italy — a new hybrid version of the Fiat 500 city car at its Mirafiori plant, as well allocating space for a new hybrid version of the Jeep Compass at its plant in Melfi.
Stellantis's plant in Mirafiori already makes the electric Fiat 500e city car, however, slow sales for EVs across the board have forced the automaker to slow production and furlough some workers. The automaker is confident the move will help its workforce across the country. .
“Those announcements complement the recent ones made for a new generation of battery to make the Iconic Fiat 500e even more appealing to customers and the industrial extension of the Fiat Panda hybrid in Pomigliano,” the automaker said in its statement. “The supply of those new hybrid models will contribute positively to the workload of Termoli plant and Mirafiori e-DCT transmissions plants for the coming years.”
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The new announcement comes as tensions between Stellantis and the Italian government have slowly approached a boiling point. Recently, authorities seized 134 Fiat Topolino electric city cars at the port of Livorno because of the small, centimeters-big Italian flag sticker affixed to the car's the bodywork, a violation of an obscure law designed to protect the sanctity of Italian-made goods.
This incident also comes after Alfa Romeo changed the name of its new compact EV crossover from Milano to Junior due to vocal opposition from key government officials.
“A car called Milano cannot be produced in Poland. This is forbidden by Italian law,” Italian industry minister Adolfo Urso said, referring to the same law used to seize the 134 Fiats. “This law stipulates that you cannot give indications that mislead consumers. So a car called Milano must be produced in Italy. Otherwise, it gives a misleading indication which is not allowed under Italian law.”
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The Italian government under Prime Minister Giorgia Meloni has some high goals for boosting domestic auto production, targeting 1 million cars built in the country per year by 2030. In the past, Meloni has criticized Stellantis's decisions to cut costs and manufacture "Italian cars" outside Italy.
“If you want to sell a car on the international market by advertising it as an Italian jewel, then that car must be produced in Italy," Meloni said in a January speech to lawmakers.
In its statement, Stellantis says that Tavares "recalled the importance of offering affordable and high-Quality cars for Italian customers," noting that it depends on "its suppliers and Italian institutions" to stay competitive in the market. The automaker said it also shares the same goal of producing 1 million vehicles per year in the country by 2030, noting that it'll need a "supportive business environment" in order to get there.
Currently, the company is starting a "generational refresh" of its factory workers, starting with the hiring of young workers at its Mirafiori plant; where the hybrid Fiat 500 is set to be built.
As per a report by Reuters, the leader of Italian labor union Federazione Italiana Metalmeccanici (FIM-Cisl) Ferdinando Uliano said that Tavares told him that production of the Fiat 500 hybrid will start in the first quarter of 2026.
At the time of writing, Stellantis NV, traded at $22.57 under (STLA) on the New York Stock Exchange, up 1.19% today.
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