Stellantis plans to launch a new, affordable electric-vehicle platform in Europe, both to try and juice a shriveled entry-level car segment and to utilize underused factory capacity.“The ‘E’ in E-Car stands for European, Emotion, Electric and Environmental friendliness. This high potential segment, to be produced in Europe for Europeans, has been recognized by the European Commission for its potential to boost European design and manufacturing jobs while playing a vital role in supporting the wider adoption of full electric vehicles for convenient, everyday, city-centric mobility,” said Stellantis in its release.The company said production of its new compact “E-Car” will begin in 2028 at Stellantis’ Pomigliano d’Arco plant near Naples, Italy. According to Reuters, the fully electric city car is expected to start at around €15,000, or roughly $17,500.Stellantis CEO Antonio Filosa said demand for “small, stylish vehicles” built in Europe for European buyers is high but is being unmet. The new platform could spin off multiple models across brands including Fiat, Opel, and Citroen, says Stellantis.The current Citroën E-C3 electric car..As in North America, automakers across Europe have slowly abandoned small, affordable cars in recent years, turning more toward larger, more expensive, and, hence, higher-margin vehicles to pad their bottom lines. While a combination of factors has led to automakers’ profit margins shrinking across the board, their response has been to lean on higher-end models to drive profits. But the move by consumers to bigger and more expensive vehicles has also been helped by more generous financing math, with loan terms extending to 84 months, allowing more shoppers to buy more expensive cars at a lower monthly payment.Autoweek SOC EV Newsletter sign upStellantis has advocated lately for a class of simplified urban EVs inspired by Japan’s popular “kei cars.” According to Reuters, the European Commission has agreed that such vehicles could benefit urban mobility and lead to broader EV adoption among lower-income consumers.The E-Car project would also be a boon to local manufacturing jobs in Italy. Labor unions welcomed the announcement, saying they are hopeful the additional production could eventually lead to full employment at the Pomigliano factory, which currently builds the Fiat Panda.