In a significant move, Stellantis is channeling 38 million euros ($41 million) into its Verrone facility in Northern Italy. This investment aims at bolstering the production of components for electric vehicles, specifically targeting small-size models. The automaker announced this development on Monday.
The investment at the Verrone plant will enable the creation of steel components crucial for electric drive modules. These modules are already being manufactured by Stellantis in other European locations. Production at Verrone is slated to commence by the end of 2027, marking a pivotal expansion to cater to the evolving European automotive market.
Stellantis has set a target to manufacture over 400,000 units annually at full capacity. Moreover, the company is open to further increasing its output by an additional 200,000 units, contingent upon the automotive market’s performance in Europe.
Currently, Verrone’s operations are focused on producing transmissions for petrol engine vehicles, with last year’s output exceeding 200,000 units. The plant employs around 350 workers, underscoring its role as a significant employer in the region.
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This initiative comes at a time when the European automotive market is navigating a complex transition. Despite the push for electric vehicles, sales growth has not met expectations, and carmakers face challenges from regulations aimed at reducing CO2 emissions. Stellantis’ move reflects a strategic adaptation to these market conditions.
Meanwhile, Stellantis is undergoing leadership changes, with Chairman John Elkann steering the company as it seeks a new CEO following Carlos Tavares’s departure last December. Elkann is scheduled to present at a parliamentary hearing in Rome to discuss Stellantis’ manufacturing activities in Italy.
Stellantis’ investment in Italy represents a strategic endeavor to enhance its electric vehicle engine production capabilities amid a shifting automotive landscape. This move not only augments the company’s manufacturing base but also positions it to better meet market demands for sustainable vehicle technologies.
