Stellantis is planning to invest €38m ($41m) in its Verrone plant located in Northern Italy, for the production of electric vehicle (EV) powertrain parts, reported Reuters.
The investment aims to bolster the manufacturing of steel components for electric drive modules, which are currently produced across other European facilities of the company.
Production at the Verrone plant is scheduled to commence by the end of 2027, with Stellantis targeting annual output of over 400,000 units at full capacity.
Additionally, the company is considering the possibility of increasing the annual output by another 200,000 units, contingent on the performance of the automotive market in Europe.
This move comes at a time when the European car market is facing a challenging transition, with EV sales growth falling short of expectations.
Automakers, including Stellantis, are grappling with measures aimed at encouraging consumers to move away from combustion engines, such as stringent CO2 emission regulations.
In addition to the new EV engine parts, the Verrone plant will continue its existing production of transmissions for petrol engine cars.
Last year, the facility produced more than 200,000 transmissions. The plant currently employs around 350 people.
Earlier this month, Stellantis’ Jeep brand unveiled it plans to produce next-generation Jeep Compass in Italy.
The model is set to debut in Europe this spring and will be produced at the Melfi plant.
The upcoming Jeep Compass will be built on the STLA Medium platform, offering an expanded powertrain lineup to meet diverse customer preferences.
These include e-Hybrid, e-Hybrid plug-in, and fully electric options, indicating Stellantis’ commitment to electrification.
