A BIG EV BATTERY PLAN DIED AND STELLANTIS IS NOW LEANING ON HYBRIDS TO FILL THE GAP
Stellantis’ factory in Termoli, Italy, remains at the center of the group’s industrial plans in the country. After months of uncertainty following the cancellation of a battery gigafactory project originally planned with the Automotive Cells Company consortium, the automaker has announced new investments and confirmed the continuation of several production programs at the historic facility.
At the center of the announcement is a new investment of about $45 million, along with the launch of production activities related to hybrid vehicle components.
During a meeting in Rome with union representatives, Stellantis outlined its plans for the Termoli plant. The company confirmed a $45 million investment to begin producing the eDCT transmission, a dual clutch gearbox used in several hybrid models across Stellantis brands.
Production Of Hybrid Transmission Begins In 2026
Series production of the new transmission is scheduled to begin on September 15, 2026. Preparatory work has already started, and installation of the new production lines is expected to be completed by the end of April.
Pilot production runs are planned between June and July to gradually increase output before full-scale manufacturing begins.
The new program will not be limited to final assembly. The factory will also perform several upstream production steps before the final transmission assembly process. Estimates suggest that reaching full production capacity could require about 288 additional workers.
For Stellantis, this investment represents an effort to offset the cancellation of the ACC battery gigafactory project that was originally intended to transform the Termoli plant into a major battery production hub.
Existing Engine Production Will Continue
At the same time, Stellantis confirmed that three engines currently built in Termoli will remain in production.
The GSE FireFly engine, which powers several models across the group’s brands, will be updated to meet the upcoming Euro 7 emissions regulations. That upgrade could extend its industrial life well beyond 2030.
The GME engine will also remain part of the production lineup, although its long-term future remains somewhat uncertain because many of the vehicles using it are primarily sold in North America.
Finally, Stellantis confirmed that production of a V6 engine will continue in Termoli as well. This engine is mainly used in Maserati models and in high-performance Alfa Romeo Quadrifoglio versions.
Production volumes are currently limited due to relatively modest sales of Maserati vehicles, but Stellantis says it plans to increase output in the coming years.
Workforce Concerns Remain
The new production programs are expected to stabilize operations at the factory, but the social situation remains delicate. The Termoli plant currently employs about 1,780 workers, and unions estimate that up to 400 positions could become redundant by the end of the year.
Around 180 employees may be temporarily transferred to other Stellantis facilities. The company also plans to rely on voluntary retirement options and other workforce programs to ease the impact of restructuring.
At the same time, Stellantis has already begun bringing back Italian workers who had previously been assigned to the now-canceled ACC gigafactory project.
Long-Term Plans Still Unclear
In the short term, the introduction of eDCT transmission production and the modernization of the GSE engine should help maintain industrial activity in Termoli.
However, for unions and local authorities, the bigger questions about the plant’s long-term future remain unresolved.
Stellantis is expected to present a new industrial strategy for Italy on May 21. That plan should outline additional production programs aimed at compensating for potential declines in engine manufacturing in the years ahead.
This article originally appeared on Autorepublika.com and has been republished with permission by Guessing Headlights. AI-assisted translation was used, followed by human editing and review.
Read More 2026-03-11T18:06:02Z