Photo Credit: iStockStellantis says it will begin building a new family of small, affordable electric vehicles in Italy in 2028, marking a renewed push into one of Europe's most important auto segments.The announcement comes as competition intensifies from Volkswagen's upcoming small EV lineup and lower-cost Chinese automakers looking to expand their presence in Europe.According to a report from Electrive, Stellantis said its new "E-Car" project will be built at its Pomigliano plant near Naples for several of its brands.AdvertisementAdvertisementThe new vehicles will be "small, innovative, affordable and fully electric," though Stellantis has not yet shared technical specifications, battery details, or model names.Stellantis said the cars will use "world-class BEV technologies," Electrive noted, and will rely on selected partners to help reduce costs and shorten development time.It also emphasized that the vehicles will be "produced in Europe for Europeans," a notable point as new European rules could link EV subsidies to local manufacturing and European-sourced components.The project is part of Stellantis' broader effort to strengthen its position in the shrinking small-car market. The Pomigliano site currently makes the Fiat Panda/Pandina and Alfa Romeo Tonale, and it has not begun EV production yet. The company is expected to provide more of its broader strategy at Investor Day later this month.AdvertisementAdvertisementAffordable EVs could be a major win for drivers, as upfront cost remains one of the biggest barriers to making the switch from gas-powered cars.If Stellantis is able to bring lower-cost EVs to market across multiple brands, it could open the door for more households to access vehicles that are typically cheaper to run and require less routine maintenance than traditional gas models.That is especially important in Europe, where small, city-friendly cars play a major role in everyday transportation. Stellantis itself linked the project to the "unprecedented contraction" of the affordable small-car segment, suggesting there is strong demand for practical, budget-friendly vehicles that do not rely on gasoline.There is also a bigger industrial picture at play.AdvertisementAdvertisementEuropean automakers are facing pressure to compete with fast-moving Chinese EV companies while also meeting stricter emissions targets. Building these vehicles in Italy could help Stellantis respond on both fronts by supporting local manufacturing and putting more zero-emission options on the road.For now, Stellantis is laying the foundation. The company has selected a historic Italian plant, committed to a 2028 production start date, and said it is working with partners on technology aimed at shortening time to market and improving affordability.Reports have suggested those partnerships could involve companies outside Europe, though Stellantis has not confirmed who will provide the underlying technology.The company is also positioning the E-Car as a multi-brand effort, which could allow it to spread development costs across a larger number of vehicles. That kind of scale can be key to lowering sticker prices for consumers while helping EVs better compete with conventional compact cars.AdvertisementAdvertisementFor drivers, the bigger takeaway is that more affordable EV options may soon be on the way, and that could translate into meaningful long-term savings. EVs often cost less to run because electricity is generally cheaper than gasoline, and they avoid many common maintenance needs, such as oil changes. If you're thinking about making the switch, you can learn more about the basics here.Charging at home can lower costs even further compared to relying on public chargers. Qmerit can help those looking to install Level 2 EV chargers by providing free, instant installation estimates.To cut costs even more, consider exploring EnergySage and pairing an EV with rooftop solar. Charging with your own energy can be cheaper than using public charging stations or drawing power from the grid."Our customers are calling for a revival of small, stylish vehicles, proudly produced in Europe, which are also affordable and environmentally friendly," CEO Antonio Filosa said. "Stellantis is answering their call with exciting new models for multiple brands."Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
+31 others
