MILAN (Reuters – Stellantis will make its Fiat Panda small-selling Fiat Panda car at Pomigliano, southern Italy from 2026 onwards, according to metal workers unions. The announcement was made after representatives from the carmaker had met with workers.

Producing the Panda in Pomigliano, which was never planned by the group, will boost the production of Alfa Romeo’s brand new sports utility vehicle (SUV), Tonale. Production is set to commence at the plant.

Stellantis (which owns Fiat, Alfa Romeo, and other brands) said that an agreement to create a Italian battery plant was possible. Unions stated this after the meeting.

Through the ACC joint venture, Mercedes and TotalEnergies, the so-called ‘gigafactory,’ which will be constructed in Termoli (south Italy) by reconversion of an engine facility, the new project would make the group’s third European location after the ones in France and Germany.

In a statement, representatives of the UILM union stated that updates on Termoli & Pomigliano showed Stellanti’s support for Italy in the move to electric mobility.

Stellantis was confirmed by a close source that it had made progress in closing Termoli’s deal. The company also stated that they were confirming Italy’s role as a central part of its strategy.