Stellantis Plans Affordable Small Electric Cars for Europe by 2028

Stellantis, the automotive group that owns brands including Fiat, Citroën, Peugeot, and Jeep, has announced a major new initiative to produce a range of small, affordable electric vehicles for Europe. The company confirmed that production of these "ECar" models will begin in 2028 at its Pomigliano plant in Italy, with the goal of revitalizing the continent's shrinking market for entry-level cars.

The initiative is a direct response to what company officials describe as a crisis of affordability in the European automotive sector. Stellantis CEO Antonio Filosa stated that the lack of new cars priced below 15,000 euros is a major challenge for the industry. The ECar program aims to address this gap by offering compact, fully electric vehicles tailored for city-centric mobility and shorter commutes.

The strategic move aligns with a new regulatory framework being developed by the European Commission. This framework, inspired by Japan's "kei car" regulations, will create a new vehicle category, known as M1E, for small, European-built electric cars under 4.2 meters in length. Officials say this category will provide manufacturers with long-term regulatory certainty and incentives, such...