Stellantis To Build Hybrid Fiat 500 and Jeep® Compass At Mirafiori

Stellantis CEO Carlos Tavares met with Italian union officials at the Mirafiori Assembly Plant in Turin to address pressing concerns about the facility’s future and the well-being of its workforce. The Mirafiori plant has long been a key player in Stellantis’ production network, known for manufacturing iconic models such as the Maserati Ghibli, Quattroporte, GranTurismo, and the all-electric Fiat 500e. However, recent economic challenges have prompted the company to reassess its production strategies, leading to significant workforce reductions and operational changes.

Workforce Reductions and Operational Changes – 

The Mirafiori Assembly Plant has recently seen job cuts totaling approximately 1,520 positions, impacting line workers and office staff. These reductions are part of Stellantis’ efforts to align its operations with the current market realities. Affected employees have been offered voluntary exit packages, including financial incentives. Additionally, Stellantis announced the suspension of production at Mirafiori until August 6th due to declining demand and operational constraints.

Meeting with Unions – 

On Monday, a second meeting occurred in Turin, where Tavares presented union partners with concrete plans for allocating models in Stellantis’ Italian factories through 2030 and beyond. This plan aims to boost production in Italy and ensure the long-term viability of its facilities.

Announcements of New Hybrid Models – 

During the meeting, Tavares emphasized the importance of manufacturing flexibility in response to uncertain electrification trends. He announced the development of a hybrid version of the Fiat 500, which will be manufactured at the Mirafiori plant. A new hybrid version of the next-gen Jeep® Compass will also be produced at the Melfi plant. These announcements are part of Stellantis’ broader strategy to enhance its product lineup and adapt to changing market demands.

Impact on the Mirafiori Plant – 

Introducing the Fiat 500 hybrid is particularly significant for the Mirafiori plant. Stellantis aims to produce 200,000 units of the Fiat 500 annually at Mirafiori, with 125,000 hybrids. This move is expected to revitalize the plant’s production capabilities and improve relations between Stellantis and the Italian government, which has criticized the company for reducing production and relocating some models.

The new hybrid Fiat 500e will be built on the same platform as the existing 500e electric model. Production of the hybrid version is expected to begin by the end of 2025. This initiative is part of Stellantis’ broader goal to increase annual vehicle production in Italy to one million units by 2030, up from approximately 750,000 last year.

Going Forward – 

Carlos Tavares’ meeting with union officials at the Mirafiori Assembly Plant marks a significant step in addressing the challenges the facility and its workforce faces. The announcement of new hybrid models is a positive development, offering hope for increased production and job stability and showing that a majority of the market still isn’t ready for the all-electric vehicle wave.

As Stellantis navigates the complexities of the current market, its focus on flexibility and innovation will be crucial in shaping the future of its Italian operations.