By Dominic Chopping
Jeep-maker Stellantis will start producing a new range of electric vehicles to serve the affordable small-car market in Europe.
The automaker said Tuesday that the project--called E-Car--will see production begin in 2028 at its Pomigliano d'Arco plant in Naples, Italy.
"Our customers are calling for a revival of small, stylish vehicles, proudly produced in Europe, which are also affordable and environmentally friendly," Chief Executive Antonio Filosa said.
The company said the small affordable car segment has the potential for significant production volumes, noting that the European Commission has recognized the category as potentially offering a way to boost European design and manufacturing jobs while supporting the wider adoption of fully electric vehicles.
Stellantis plans to offer the new E-Cars under multiple brands and will work with partners to speed development and keep costs down.
The announcement comes after Stellantis Chairman John Elkann previously called for the return of compact affordable cars that were once popular in Europe, but warned they have become expensive to build due to European Union regulations that have increased weight and costs. He has suggested that Europe look to Japan, where small and affordable "kei" cars retain a significant market share.
European Commission President Ursula von der Leyen used her 2025 State of The Union address to propose working with industry on a new small affordable car initiative to ensure that the market isn't conquered by China and others.
"I believe Europe should have its own E-car. E for environmental - clean, efficient and lightweight. E for economical - affordable for people. E for European - built here in Europe, with European supply chains," she said at the time.
Stellantis is due to present a new group-wide strategic plan at an investor day Thursday.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
May 19, 2026 04:42 ET (08:42 GMT)
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