Stellantis To Build All-New Lancia Gamma At Melfi

Stellantis has revealed plans to manufacture the upcoming Lancia Gamma at its Melfi Assembly Plant in southern Italy, beginning in 2026. This announcement marks a significant step in the revival of the Lancia brand and underscores the automaker’s dedication to bolstering its presence in the Italian automotive sector.

The Melfi Assembly Plant, located in Basilicata, has been a crucial part of Italy’s automotive industry since its opening in 1994. Known for its blend of Italian craftsmanship and advanced production technologies, the plant has played a central role in Stellantis’ Italian operations. Currently, it produces the Jeep® Compass and Jeep Renegade models, and it is set to expand its production capabilities with the addition of the new Lancia Gamma and the next-generation Jeep Compass for the European market.

The Lancia Gamma will be built on Stellantis’ STLA Medium multi-energy platform, which supports a range of powertrains, including hybrid and fully electric options. This platform is part of Stellantis’ broader plan to transition towards electrified mobility and cater to a changing market that increasingly values sustainability and high performance.

“The new Lancia Gamma represents a milestone in our journey towards the future. It embodies our brand’s commitment to sustainability and high performance while celebrating the unmistakable elegance that has defined Lancia for decades,” said Lancia CEO Luca Napolitano. “By producing it at the historic Melfi plant, we are strengthening our connection to Italy’s rich automotive heritage and advancing our vision for an electrified future.”

This decision comes amid a challenging period for Stellantis in Italy. The company has faced criticism over declining local production, driven by softer demand and plans to manufacture some new models of its Italian brands outside the country. The output from Stellantis’ Italian plants is projected to fall below 500,000 vehicles this year, a significant drop from the 751,000 units produced in 2023, according to estimates from the FIM-CISL union. The Melfi plant itself has seen a 62% decline in output between January and September 2024, contributing to this downturn.

However, Stellantis’ plan to produce the Lancia Gamma at Melfi is seen as a strategic move to address these concerns and support local manufacturing. The company is committed to producing five new mid-sized models at Melfi over the coming years, targeting both European and Middle Eastern markets. This multi-year plan is intended to leverage the plant’s expertise in quality production and its ability to support Stellantis’ shift toward more sustainable and premium vehicles.

“The decision to produce the new Gamma in Melfi reflects Stellantis’ commitment to promoting Italian-made products,” the company stated in a press release. “This decision not only strengthens Lancia’s connection to its Italian roots but also underscores the importance of investing in local territories to create innovative, cutting-edge products.”

Stellantis’ decision to invest in the Melfi Assembly Plant is part of a larger effort to revitalize its Italian brands, including Lancia, Fiat, and Alfa Romeo. The announcement of the Gamma’s production follows Lancia’s recent launch of the Ypsilon Rally4 HF and the revival of the Lancia Corse division, highlighting the brand’s renewed emphasis on performance and heritage. However, Lancia faces significant pressure, as it has been viewed as a brand at risk of being discontinued if it doesn’t demonstrate strong results soon. This new investment is a crucial step toward proving its potential for a successful comeback.