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Stellantis prepares to revive production at its Melfi plant with upcoming DS7 and Lancia Gamma models, signaling a step toward capacity recovery in Italy

Executive summary: Stellantis’ Melfi plant in Italy is reopening its assembly line, with plans to begin pre‑series production of a new Alfa Romeo SUV in 2027, while Mirafiori and Pomigliano plants will restart operations on 24 August 2026 after extending solidarity contracts for another year. The restart signals a recovery of manufacturing capacity in Italy, supports the launch of new Stellantis models (DS7, Lancia Gamma, Alfa Romeo SUV), and may stabilize employment and supply‑chain activity in the region.

Who is involved: Stellantis (parent company of DS, Lancia, Alfa Romeo), Italian workers represented by solidarity‑contract unions, and local governments overseeing the Melfi, Mirafiori and Pomigliano sites.

Likely next: Finalization of pre‑series tooling for the Alfa Romeo SUV through 2026, commencement of low‑volume production in 2027, and potential further extensions of solidarity contracts at Mirafiori and Pomigliano based on demand trends.

The Il Sole 24 Ore reports that the Melfi assembly unit is reopening, with pre‑series of a new Alfa Romeo SUV slated for 2027 and Mirafiori and Pomigliano set to resume operations on 24 August after their solidarity contracts were extended by a year. This move reflects Stellantis’ effort to restart idle capacity in Italy amid a gradual recovery of European automotive demand. While the restart is modest in scale, it highlights the company’s focus on launching new models and utilizing existing plants to meet forthcoming product launches.

What's next — scenarios

Capacity Rebound & Premium Focus (50%)

Increased operational margins through higher-margin premium model launches (DS/Lancia) in the Italian market.

Stagnant Demand & Underutilization (30%)

Increased overhead per unit as the Melfi restart fails to meet projected volume targets.

Labor & Structural Friction (20%)

Disrupted production schedules due to renewed industrial action despite contract extensions.

What to watch

Timeline

Analysis — what this means

Likely next events

Sectors affected

Key entities

Sources

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