Stellantis Invests in Italy Electric Motor Plant to Advance EV Strategy

Stellantis

Stellantis invests €38mn in Italian plant to expand EV motor component production and strengthen European electric vehicle supply chain.

New Investment to Expand Stellantis Electric Motor Production in Italy

Stellantis will invest €38 million ($41.1 million) in its Verrone, Italy plant to build electric motor components. The funding will support the installation of 56 new machine tools, enabling an output of 400,000 components per year. Stellantis may expand this capacity to 600,000 units in the future. Production is scheduled to start by 2027.

The move represents another strategic step in Stellantis' transition from internal combustion engines (ICE) to electric vehicles (EVs). This investment also aligns with the company’s plan to boost local manufacturing and maintain its industrial base in Italy. In January, Stellantis announced plans to produce electrified dual-clutch transmissions for hybrid cars in Italy.

EV Sales Decline But Stellantis Doubles Down on Electrification

Stellantis' global sales dropped to 5.7 million units in 2024, down from 6.2 million in 2023. Full electric vehicle sales also declined to 314,500 units, compared with 369,000 units in the previous year. Despite this, the company is increasing investment in long-term EV infrastructure to future-proof its European operations.

Meanwhile, Stellantis’ push to localize EV production aligns with broader EU goals to reindustrialize the clean tech sector. With supply chain risks growing, building electric motor parts domestically offers greater security and cost stability. This investment could also stimulate supplier ecosystems in northern Italy and contribute to job preservation.

The Metalnomist Commentary

While EV sales have slowed, Stellantis is thinking long-term. Strategic investments like this suggest a pivot toward in-house component production and regional manufacturing resilience. This move also signals confidence in the EU’s clean mobility future, despite current market volatility.