Stellantis has announced plans to launch a new generation of small, affordable electric cars in Europe, with production starting in Italy in 2028.
The car giant said its Pomigliano d’Arco factory near Naples will lead the new “E-Car” project as part of efforts to bring back low-cost compact vehicles for European drivers.
The company said the move comes after years of rising prices and a sharp decline in affordable small cars across Europe.
Stellantis explained that the new models would combine low running costs with practical city driving and support the switch to electric motoring.
The project is linked to plans from the European Commission to create a new category for small electric cars built in Europe.
Under the proposals, electric vehicles shorter than 4.2 metres and produced inside the EU could qualify for a new “M1E” classification.
Manufacturers would also receive “super-credits” to help meet strict emissions targets while investing in cheaper electric vehicles. The final rules have not yet been confirmed by Brussels.
Antonio Filosa, chief executive of Stellantis, said the project reflected the company‘s long history of building popular small cars for Europe.
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He said: “The E-Car is a concept that finds its natural match in the small car success that runs deep in our European Stellantis DNA.
“Our customers are calling for a revival of small, stylish vehicles, proudly produced in Europe, which are also affordable and environmentally friendly.”
Mr Filosa confirmed the company would launch “exciting new models for multiple brands” from 2028. The new electric cars will be sold under several Stellantis brands, including Fiat, Citroën, Peugeot, Vauxhall, Jeep and Abarth.
The vehicles will share the same basic platform and technology to help reduce costs and speed up development, the car giant explained.
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Stellantis said the Pomigliano d’Arco plant was chosen because of its long history of producing affordable cars, including the Fiat Panda.
The announcement forms part of Stellantis‘ wider €60billion (£50.7billion) “FaSTLAne 2030” strategy, which was unveiled during the company’s Investor Day in the United States.
The five-year plan includes more than 60 new vehicle launches and 50 major model updates by 2030 across all of the company’s brands.
Stellantis said this would include 29 battery-electric vehicles, 15 plug-in hybrids and 24 hybrid models.
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The company also confirmed that 70 per cent of its investment in brands and products would focus on four key marques, Jeep, Ram, Peugeot and Fiat, alongside its commercial vehicle business.
Mr Filosa said: “FaSTLAne 2030 is the result of months of disciplined work across the Company and is designed to drive long-term profitable growth. With the customer at the centre of everything we do, the plan will deliver our purpose – ‘to move people with brands and products they love and trust’.”
As part of the strategy, Stellantis plans to invest more than €24billion (£20.3billion) in new vehicle platforms, powertrains and technology over the next five years.
The company added that the new E-Car programme was designed to help protect manufacturing jobs and make electric vehicles more affordable for ordinary motorists, especially those driving in cities.