MILAN — Stellantis, the automotive giant, has declared plans to allocate €2 billion (approximately $2.1 billion) for investments into its Italian operations next year, alongside an additional €6 billion (around $6.3 billion) dedicated to enhancing its supply chain. This announcement was made to a government panel on Tuesday by the leader of the company’s European division.

This strategic presentation comes shortly after the unexpected resignation of former CEO Carlos Tavares, a move driven by declining sales figures. The company is currently being overseen by an executive committee chaired by John Elkann until a new CEO is appointed.

Stellantis, which ranks as the fourth-largest automaker worldwide, was established through the merger of Fiat Chrysler and PSA Peugeot in 2021. The company’s primary fiscal base is established in the Netherlands, yet it maintains operational headquarters in Turin, Paris, and Auburn Hills, Michigan.

During the closed meeting, Stellantis European chief Jean-Philippe Imparato conveyed to the ministers for economic, labor, and development that Turin is set to become the focal point for the company’s European operations starting January. This announcement aims to alleviate concerns expressed by Italian officials and labor unions regarding a perceived shift in the company’s operational focus following the merger.

Imparato also revealed plans for Stellantis’ six manufacturing plants in Italy to boost operations starting in 2026, unveiling over a dozen new vehicle models expected to roll out through 2032, according to Stellantis’ media team. Among the new models, a Fiat Pandina city car will be produced in Pomigliano d’Arco near Naples, slated for 2028, while Mirafiori in Turin is set to host the manufacturing of the iconic 500 city car, which will feature both hybrid and fully electric variants. Additionally, hybrid models like the new Jeep Compass and Alfa Romeo Giulia will be introduced at the Melfi and Cassino plants in southern Italy.

“I won’t deny that 2025 will pose challenges, but all of the factories in Italy will be operational,” Imparato stated at a press briefing post-meeting that also included participants from unions, regional authorities, and industry stakeholders.

Economic Development Minister Adolfo Urso pointed to new European regulations set to be implemented on January 1 as a reason for anticipated production slowdowns, highlighting that 20% of manufactured vehicles must be electric to avoid significant penalties. He advocated for modifications to these regulatory frameworks.

Due to sluggish sales, notably in the electric vehicle segment, the Italian factories have been engaging in short-term layoff programs.

While labor unions exhibited cautious optimism regarding the investment pledges, there remains a level of skepticism about their potential to stimulate a meaningful recovery. Union leaders expressed concern that layoff initiatives are likely to persist into the upcoming year.

“There aren’t sufficient conditions to assert we have entered a new era,” remarked Rocco Palombella, head of the Uilm union. “Perhaps we can witness a new chapter in our industrial relations, but that doesn’t guarantee improvements for the factories or that the situation will enhance overnight.”