Stellantis To Begin Production Of New Models At Italy's Melfi Plant: Report

Stellantis N.V. (NYSE: STLA), a global automaker, has reportedly unveiled its roadmap to produce five new medium-sized models for the European and Middle East regions.

The production, set between 2024 and 2026, will happen at the Melfi production facility located in southern Italy, reported Reuters.

The details concerning the production at Melfi were shared in a recent meeting, fostering positive labor dynamics in Europe amidst Stellantis' ongoing labor challenges in North America.

Earlier, the automaker had announced its intention to construct five electric vehicle (EV) models in Melfi, all originating from the STLA medium platform. However, specifics of this plan remained under wraps until now.

This opacity in information led unions to instigate a one-day strike at the plant last month. The facility is one of Stellantis' largest in Italy, employing approximately 5,800 individuals.

The report added that new production in Melfi will start early next year with a DS model, followed in 2025 by the new Jeep Compass.

Meanwhile, assembly of existing models - Fiat's 500X, Jeep's Compass, and Renegade - will phase out between 2024 and 2025, the report noted, citing unions.

This announcement makes the Melfi facility the first Stellantis plant in Italy with a transparent and forward-focused mandate.

Union leaders Gianluca Ficco and Marco Lomio from UILM have reportedly urged the Italian government to bolster their backing for the electric shift in the auto sector.

Concurrently, Rome is strategizing a long-term vision for its auto industry in collaboration with Stellantis and pertinent entities.

Price Action: STLA shares are trading lower by 1.34% at $18.66 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.