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MILAN, Nov 20 (Reuters) – Fiat-parent company Stellantis (STLAM.MI) will start in-depth talks with the Italian government next month to finalise a broad agreement for the country's automotive industry, including higher domestic production targets.

Stellantis CEO Carlos Tavares and Industry Minister Adolfo Urso said earlier this year they were working on a deal to increase the automaker's annual output in Italy to one million vehicles, without specifying a timeframe.

After preliminary discussions with Stellantis, official talks would start on Dec. 6 and would also involve unions, local governments and automotive lobby group ANFIA, Urso's office said on Monday.

Stellantis, the parent of brands including Fiat, Alfa Romeo, and Peugeot, produced fewer than 700,000 cars and vans in Italy in both 2021 and 2022. According to forecasts, output will increase only slightly this year.

Fiat Chrysler, which merged with France's PSA in early 2021 to create Stellantis, last produced more than one million vehicles in Italy back in 2017.

Talks will also focus on reinforcing R&D activity, investing in innovative vehicle models, retraining workers and helping auto part suppliers to convert their production for new vehicles, the ministry said.

A spokesman for Stellantis, Italy' sole large automaker, said on Monday that the group was reaffirming its strong commitment to the country and its willingness to create conditions to keep it central to its strategy.

Stellantis reiterated that a broad deal depended on a series of measures by the Italian government, including the postponement or cancellation of the proposed Euro 7 regulation on pollutant vehicle emissions, EV sales incentives, charging network development and lower energy costs.

Reporting by Giulio Piovaccari Editing by Keith Weir

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