Stellantis to Produce Affordable E-Car in Italy by 2028

Stellantis announced the E-Car project, a range of small, affordable, and fully electric vehicles designed for the European market. Production is scheduled to begin in 2028 at the Pomigliano plant in Italy. To reduce costs and access competitive technology, the automaker is partnering with China's Leapmotor, following a previous collaboration between the two companies to develop an electric SUV in Spain.

The initiative responds to a contraction in the entry-level car segment and aligns with a call for affordable European EVs first proposed by European Commission leader Ursula von der Leyen during her 2025 State of the Union. The project also supports upcoming European Commission regulations for a new M1E classification for vehicles under 4.2 meters, which aims to increase regional manufacturing jobs.

Strategically, the move follows pressure from the Italian government, led by Prime Minister Giorgia Meloni, for Stellantis Chairman John Elkann to increase production at underutilized Italian factories. This shift reflects a broader trend of European automakers partnering with Chinese rivals to compete against the expansion of affordable EVs and hybrids from companies like BYD Co. in Europe. Stellantis intends to launch these models across multiple brands, with Citroën signaling interest in a model priced under €15,000.