Stellantis is set to introduce a new range of affordable fully electric vehicles to reinvigorate the diminishing entry-level car market and struggling manufacturing industry in Europe. The company, which owns Fiat, Opel, and Citroen, announced that production of the budget-friendly, compact, and fully electric “E-Car” will commence in 2028 at its Pomigliano d’Arco facility in Italy, with the potential for substantial production volumes. These vehicles are expected to be priced around 15,000 euros ($24,000 US).
In recent years, automakers have shifted away from developing low-cost entry-level models due to the increasing expenses associated with electrification and safety standards, focusing instead on more profitable mid-sized and larger vehicles. The E-Car project will leverage partnerships to reduce costs and accelerate development, aiming to bolster local manufacturing employment opportunities.
Stellantis CEO Antonio Filosa emphasized the company’s strategy to cater to the demand for compact and stylish European-made vehicles tailored for the local market. The E-Car lineup will include new models across multiple brands, drawing inspiration from Japan’s “kei cars” – small, efficient vehicles popular for city driving due to their size and engine specifications, resulting in lower taxes and insurance costs.
Recognizing the potential of the E-Car segment to enhance European design, manufacturing jobs, and promote wider electric vehicle adoption, the European Commission has shown support for the initiative. Stellantis has highlighted the importance of introducing more affordable EV options to prevent a slowdown in the EU’s transition to emission-free mobility, especially among consumers with lower incomes.
By introducing the E-Car with anticipated high production volumes, Stellantis aims to optimize its production capacity in Europe, addressing underutilization issues. The company is also exploring collaborations with Chinese partner Leapmotor to expand manufacturing operations beyond China. The Pomigliano plant, known for producing models like the Fiat Panda, is expected to continue operations until at least 2030, with the introduction of the E-Car likely to lead to increased employment opportunities at the facility, as confirmed by Italian labor unions.