The Jeep brand, owned by Stellantis, is set to commence production of the next-generation Jeep Compass in Italy ahead of its debut in Europe this spring.

The Compass is planned to be produced at the Melfi plant in Italy, with production slated to commence within the year.

Built on the STLA Medium platform, the new Jeep Compass aims to cater to various customer preferences by offering an expanded powertrain lineup, including e-Hybrid, e-Hybrid plug-in, and fully electric options.

Stellantis aims to triple production at its Melfi plant by adding hybrid versions of key models, including the Jeep Compass, Lancia Gamma, and DS7.

Jeep says the Compass will be the brand’s most globally available model and will debut in Europe with production beginning in Melfi, Italy in 2025, before expanding production to North America and around the world in 2026.

Stellantis has faced some criticism in Italy over lower levels of output from Italian plants in recent years. Stellantis owns the ‘national champion’ Fiat brand and makes other Stellantis brand vehicles –  such as Jeep – at its Italian plants.

The Melfi plant makes Jeep Renegade as well as the Compass model, but overall output at Melfi has fallen to under 100k units/pa.

In December 2024, Stellantis reportedly unveiled a strategic plan to rejuvenate its Italian manufacturing operations amidst the tough conditions faced by the European automotive industry.

The strategy involves launching new models and boosting production from 2026.

The government has committed €1.6bn to bolster the automotive supply chain, with over €1bn earmarked for 2025. However, these funds will not subsidise car purchases as they did previously in 2024.

Stellantis said its planned investments will not require public funding, as it is committed to an investment of €2bn in Italy for 2025.

The company, which employs approximately 40,000 people in Italy, has pledged to keep all its local plants operational and maintain production until at least 2032.

As per the new production strategy, at least two compact models are planned to be launched at the Pomigliano plant in southern Italy, beginning in 2028.