Stellantis is set to introduce a new range of small, cost-effective fully electric vehicles to reinvigorate Europe’s dwindling entry-level car sector and struggling manufacturing industry. The company, which owns Fiat, Opel, and Citroen, announced that production of the budget-friendly, compact, fully electric “E-Car” will commence in 2028 at its Pomigliano d’Arco facility in Italy, with the potential for substantial production volumes. It is anticipated that these vehicles will be priced around 15,000 euros ($24,000 US).
In recent years, car manufacturers have shifted their focus away from affordable, entry-level models due to escalating costs associated with electrification and safety standards. This move has led them towards larger vehicles that offer higher profit margins.
The development of the E-Car will leverage partnerships to reduce costs and accelerate the manufacturing process, thereby supporting local jobs. Stellantis aims to cater to the demand for small, stylish European-made vehicles targeted at the European market. The E-Car will encompass new models across multiple brands.
Stellantis has emphasized the need for a new generation of simplified, cost-effective small vehicles in Europe, drawing inspiration from Japan’s “kei cars” known for their compact size and engine restrictions, which result in lower tax and insurance expenses.
Recognizing the potential of the new E-Car segment to enhance European design and manufacturing jobs and facilitate broader electric vehicle adoption, particularly for urban mobility, the European Commission has shown support.
Stellantis has cautioned that without more affordable electric vehicles, the EU’s transition towards zero-emission transportation could face obstacles, especially for consumers with lower incomes. The implementation of safety features mandated by the EU, such as driver fatigue detection sensors and emergency buttons, impacts the pricing of vehicles, including those used predominantly for short city commutes.
The introduction of the E-Car is expected to help Stellantis optimize its production capacity in Europe, addressing the issue of underutilization. This aligns with Stellantis’ strategy to enhance collaboration with Chinese partner Leapmotor, with recent joint production ventures in Spain and potential manufacturing partnerships with Dongfeng beyond China.
The Pomigliano plant, known for producing models like the Fiat Panda, is slated to continue operations at least until 2030. Italian labor unions have welcomed the announcement, anticipating that the new production line will eventually lead to full employment at the plant.