Stellantis Dumps Italian BEV Gigafactory Plan to Refocus on Hybrid CarsStellantis Dumps Italian BEV Gigafactory Plan to Refocus on Hybrid Cars

Stellantis will begin making gearboxes for future hybrid powertrain models at a plant that had been earmarked for exclusive use as a gigafactory for battery-electric vehicles.

The automaker plans to use the Termoli factory in Southern Italy to construct dual-clutch transmissions to be employed by hybrid cars.

Termoli, currently making internal-combustion engines, is one of three sites in Europe where a Stellantis-led joint venture with battery specialist Automotive Cells Co. (ACC) announced plans to create BEV battery-making gigafactories.

While a gigafactory in France is now up and running, plans for two similar facilities in Italy and Germany were officially paused last year, as ACC was switching to lower-cost batteries in the face of slowing consumer demand for BEVs.

In a company statement to Reuters news agency, Stellantis says it will produce electrified dual-clutch transmissions (eDCT) in Termoli to help expand its hybrid model range starting from 2026. It made no reference to ACC's plans for the plant.

The statement adds: “With a target of three hundred thousand units per year, Termoli becomes Stellantis' third production hub for this sophisticated transmission.”

The company already produces eDCTs in Mirafiori, Italy, and Metz, France, where it signaled its overarching intention to boost hybrid vehicle production with the takeover in January of the joint venture operation it had in that plant.

Italy's major metalworker unions welcome the automaker’s decision for Termoli, saying eDCT production would provide employment for around 300 of the 1,800 staff at the plant.

Stellantis also says it will increase production levels for key components needed to support increased eDCT output at its plants in Sint Truiden, Belgium, and in Metz. It adds it will also install a new assembly line for the components in Metz.

A spokesperson for ACC, which has Mercedes and TotalEnergies as shareholders, says the JV is still assessing its investment plans for Italy and Germany with an aim to make a decision after June this year.