Stellantis to Produce Hybrid Vehicle Transmissions at Termoli Plant
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Stellantis diversifies production to hybrid transmissions amid EV challenges / Reuters |
Stellantis has revealed plans to begin manufacturing dual-clutch transmissions (eDCT) for hybrid vehicles at its Termoli plant in southern Italy. This move aligns with the company’s broader strategy to expand its hybrid vehicle production capabilities, further enhancing its ability to meet rising demand for fuel-efficient and environmentally-friendly vehicles. The Termoli facility, previously earmarked for electric vehicle (EV) battery production under the Stellantis-led Automotive Cells Company (ACC) joint venture, now represents a shift in the company’s approach to the evolving automotive landscape. This development comes after ACC paused plans to build two additional battery plants in Italy and Germany in response to declining EV demand and the growing trend toward lower-cost batteries.
The decision to pivot to hybrid vehicle technology highlights Stellantis’ effort to adapt to market conditions while strengthening its position in the global automotive sector. The Termoli facility will now play a crucial role in producing eDCTs, a vital component for hybrid cars that ensures smooth and efficient power transfer between the electric motor and internal combustion engine. The plant will complement existing eDCT production lines in Mirafiori, Italy, and Metz, France, expanding Stellantis’ footprint in the hybrid vehicle sector and bolstering its ability to meet consumer preferences for more sustainable transportation options.
Stellantis’ Italian production facilities have long been a cornerstone of the company’s operations, with Italy’s automotive industry contributing significantly to both the national economy and employment. In 2025, Stellantis has pledged a substantial €2 billion investment in Italy’s automotive sector. This investment is expected to support the production of new hybrid and electric models, create thousands of jobs, and contribute to the economic recovery of the regions where Stellantis operates. Additionally, the shift toward hybrid technology, rather than solely focusing on EV production, is part of a broader strategy to stay competitive in a market increasingly characterized by technological advancements and shifting consumer demands.
The Italian government has also played a role in the evolving landscape of Stellantis’ manufacturing operations. In 2024, the government redirected EU funds initially allocated to the stalled EV battery project, redirecting the resources to other green initiatives and technologies. This move reflects a broader trend within the European automotive industry to reassess and redirect investments based on the current market climate and technological shifts. Stellantis’ ability to pivot quickly and adjust its production strategy demonstrates the company’s agility in a challenging and rapidly changing environment.
The future of the Termoli plant as a hub for hybrid transmission production reflects Stellantis’ ability to align its operations with market demands, while maintaining a strong commitment to sustainability and green innovation. By diversifying its production strategy and expanding its hybrid offerings, Stellantis is positioning itself as a leader in the hybrid vehicle market, ensuring it meets the diverse needs of today’s environmentally-conscious consumers.
As the global automotive market continues to evolve, Stellantis is demonstrating its ability to adapt and innovate, ensuring its long-term success in a competitive industry. The focus on hybrid technology, combined with strategic investments in its manufacturing facilities, will likely strengthen Stellantis’ position in the automotive sector for years to come.
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