Stellantis To Ramp Up Vehicle Production In Italy, Eyes One Million Vehicles

Stellantis NV STLA is planning to expand production across Italy.

What Happened: The Fiat-parent company is set to commence negotiations with the Italian government next month to establish a comprehensive agreement focusing on the automotive industry in Italy, including setting higher targets for domestic vehicle production.

The discussions are slated to start on Dec. 6.

The talks will also involve labor unions, local governments, and the automotive lobby group ANFIA, reported Reuters.

Stellantis CEO Carlos Tavares and Industry Minister Adolfo Urso earlier revealed plans to grow the automaker's yearly production in Italy to one million vehicles.

This ambitious target comes after Stellantis, which oversees brands like Alfa Romeo and Peugeot, recorded production figures below 700,000 in both 2021 and 2022. The last time Fiat Chrysler, prior to merging with PSA and forming Stellantis, exceeded a million vehicle production in Italy was in 2017.

Why It Matters: The upcoming discussions will not solely focus on production numbers but will also tackle enhancing research and development activities, investing in innovative vehicle models, retraining workers, and supporting auto parts suppliers in transitioning their production for newer vehicle models.

Stellantis has underlined that the success of this agreement is contingent upon several measures from the Italian government, including reevaluating or scrapping the proposed Euro 7 regulation on vehicle emissions, incentives for electric vehicle (EV) sales, expansion of EV charging networks, and reduction in energy costs.

Price Action: STLA shares are trading higher by 0.99% at $20.43 on the last check Monday.

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