Stellantis to Unveil New Mass-Market Model as Part of Italian Production Plan - Reuters

Investing.com -- According to a report based on sources from Reuters, Stellantis, the parent company of Fiat and Alfa Romeo, is preparing to announce a new mass-market vehicle model as part of its long-term production strategy in Italy. The plan, which will be presented to the Italian government on Tuesday, includes the production of this new model either at the Pomigliano d'Arco facility near Naples or at a site in Cassino, south of Rome.

This announcement comes as part of an effort to boost Italian automotive production, following months of tense relations between Stellantis and the Italian government. Industry Minister Adolfo Urso will host a meeting with the automaker, suppliers, and unions in Rome at 1:00 PM GMT to finalize the plan.

The production strategy also involves increasing the number of hybrid models produced by Stellantis in Italy. This is in line with the expectation that fully electric vehicles will be produced in smaller volumes in the coming years.

Relations between Stellantis and Italy's right-wing government have shown signs of improvement since the sudden resignation of Stellantis CEO Carlos Tavares earlier this month. Italian politicians frequently criticized Tavares for neglecting the country’s historic manufacturing plants and relocating the production of new Fiat and Alfa Romeo models abroad.