Stellantis to start production of five new mid-sized models at Italy’s Melfi

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A Stellantis sign is seen outside its headquarters in Auburn Hills,

A Stellantis sign is seen outside its headquarters in Auburn Hills, Michigan, U.S., June 10, 2021. REUTERS/Rebecca Cook/File Photo Acquire Licensing Rights

MILAN, Oct 3 (Reuters) – Carmaker Stellantis (STLAM.MI) will start production of five new medium-sized models from a range of brands for the European and Middle East markets at its Melfi plant in southern Italy between 2024 and 2026, unions said on Tuesday.

The carmaker announced details of the production plan for Melfi in a meeting on Tuesday, unions said in a statement, smoothing labour relationships in Europe when the group is facing prolonged strikes in North America over contract renewals.

Stellantis had said it would build five EV models in Melfi, all based on the new STLA medium platform, but until now had not provided details about the plan, including a confirmation that Melfi would build a new model for the Jeep brand.

This lack of clarity prompted unions last month to call a one day strike at the facility, one of the largest in Italy for the group, with around 5,800 workers.

New production in Melfi will start early next year with a DS model, followed in 2025 by the new Jeep Compass, which will come both in fully-electric and state-of-the-art hybrid versions, and another model for the DS luxury brand.

Production of two more models, from the Opel and Lancia brands, will start in 2026.

Assembly of current models — Fiat’s 500X, Jeep’s Compass and Renegade — will be terminated between 2024 and 2025, the FIM-Cisl, Uilm, Fismic and Ugl unions said.

Stellantis could not be reached for comment.

Tuesday’s announcement makes Melfi Stellantis’ first plant in Italy to be assigned with a clear and future-oriented mission, unions said.

Gianluca Ficco and Marco Lomio of the UILM union called for the Italian government to increase efforts to support electric transition in the automotive industry.

Rome is aiming to agree a broad long term plan for its automotive industry with Stellantis and other relevant groups.

As part of it the government is expected to set up a new auto incentive scheme, while pushing for the Franco-Italian automaker to bring its annual output in the country back up to one million vehicles.

Reporting by Giulio Piovaccari
Editing by Keith Weir

Our Standards: The Thomson Reuters Trust Principles.

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