Stellantis is set to introduce a new line of small, affordable fully electric vehicles to revitalize Europe’s diminishing entry-level car market and struggling manufacturing industry. The company, which owns Fiat, Opel, and Citroen, announced that production of the budget-friendly, compact “E-Car” will commence in 2028 at its Pomigliano d’Arco facility in Italy, with the potential for significant production volumes. These electric vehicles are expected to be priced around 15,000 euros ($24,000 US).
In recent years, car manufacturers have shifted focus away from low-cost, entry-level models due to higher expenses associated with electrification and safety standards, opting instead for larger vehicles with higher profit margins. The E-Car project will leverage partnerships to reduce costs, accelerate development, and bolster local manufacturing jobs, according to Stellantis.
CEO Antonio Filosa emphasized the aim to cater to the demand for compact, stylish European-made vehicles for the region, with plans to introduce new E-Car models across multiple brands. Stellantis argues that Europe requires a new generation of cost-efficient small vehicles, drawing inspiration from Japan’s “kei cars,” known for their stripped-down design and affordability.
Recognizing the potential of the E-Car segment to support European design and manufacturing jobs while promoting wider electric vehicle adoption, the European Commission has shown interest in this initiative. Stellantis has stressed the importance of offering more affordable EV options to prevent a slowdown in the EU’s transition to zero-emission mobility, especially for lower-income consumers.
With anticipated high production volumes, the E-Car project is expected to help Stellantis optimize its production capacity in Europe. To achieve this goal, the company is expanding collaboration with Chinese partner Leapmotor, including joint production ventures in Spain. The Pomigliano plant, known for manufacturing models like the Fiat Panda, is poised to benefit from this expansion, with plans to maintain a steady production until at least 2030.
Welcoming the announcement, Italian unions expressed optimism that the new E-Car production would lead to full employment at the Pomigliano plant. They also confirmed the pricing details for the upcoming electric vehicles.
