Stellantis is set to introduce a new category of cost-effective fully electric vehicles to reinvigorate the waning entry-level car market and struggling manufacturing sector in Europe. The parent company of Fiat, Opel, and Citroen disclosed plans to commence production of the budget-friendly, compact electric vehicle named “E-Car” in 2028 at its facility in Pomigliano d’Arco, Italy, with the potential for substantial production volumes. The anticipated price for these vehicles is around 15,000 euros ($24,000 US).
In recent times, automakers have shifted focus away from affordable entry-level models due to the escalating expenses associated with electrification and safety standards. Their pursuit of higher profits has steered them towards larger vehicle segments.
To keep costs in check and expedite development, the E-Car will leverage partnerships, fostering local job growth, as confirmed by Stellantis in a statement. CEO Antonio Filosa, ahead of presenting a new business strategy, aims to cater to the demand for compact and chic European-made vehicles, with plans to introduce the E-Car across multiple brands.
Stellantis advocates for a new generation of economically efficient small vehicles in Europe, reminiscent of Japan’s “kei cars,” to mitigate the increased costs imposed by safety and emission regulations. Kei cars, prevalent in Japan, are compact urban vehicles with size and engine limitations, offering reduced tax and insurance burdens, capturing a significant market share domestically.
Recognizing the potential of the E-Car segment to enhance European manufacturing jobs and promote wider electric vehicle adoption, especially for urban commuting, the European Commission has shown support for the initiative. Stellantis underscores the necessity of affordable electric vehicles to prevent a slowdown in the EU’s transition towards emission-free transportation, particularly among budget-conscious consumers.
The introduction of the E-Car is expected to enhance Stellantis’ production capacity in Europe, addressing underutilization concerns. Filosa is also exploring collaborations with Chinese partner Leapmotor to boost production. Recent announcements include joint manufacturing ventures in Spain and potential expansion of cooperation with Dongfeng beyond China.
The Pomigliano plant, known for producing models like the Fiat Panda, is slated to continue operations until at least 2030. Italian labor unions have expressed enthusiasm for the new production plans, foreseeing an increase in employment opportunities at the plant along with confirming the anticipated price point for the E-Car.
