Market and Industry

The Lancia Gamma, produced at Melfi alongside the Jeep Compass and the DS N.7 and N.8.

The Stellantis plant in Melfi is entering the most critical phase of its industrial transformation. Will Lancia Gamma help to revitalise the plant in Basilicata?

7' min read

Translated by AI
Versione italiana

7' min read

Translated by AI
Versione italiana

The future of the Melfi plant hinges on the success of the new models launched by Stellantis, including the recent Lancia Gamma. Following the phasing out of the Fiat 500X and Jeep Renegade – which had been the mainstays of the Melfi plant for over a decade – production now centres on the new STLA Medium platform, which made its debut three years ago on the 3008 (albeit produced at Sochaux), and on four models. The Jeep Compass has already entered the ramp-up phase, the DS No. 8 has been in production since 2025, the DS No. 7 is set to roll off the production lines in the coming weeks, and pre-series production of the Lancia Gamma began at the end of August. On paper, this is a broader range positioned higher up the market than in the past, but in terms of figures, the balance is very different. To date, only the Jeep Compass is a genuine high-volume model, with production figures sufficient to support a plant such as Melfi.

Production at Melfi: from 390,000 cars to just over 30,000

To understand the scale of the change, we need to look at the figures. In 2015, the Melfi plant produced 390,000 cars – a peak reached during the full-scale ramp-up of production for the Jeep Renegade and Fiat 500X, to which the Punto was still being added. In 2016, the figure was 364,700; in 2017, 330,536; and in 2018, 339,865. Even in 2019, when the models’ life cycles were beginning to advance, 248,100 cars rolled off the production lines. At that time, the plant employed around 7,300 direct staff, and the 500X and Renegade were exported to over one hundred markets.

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Since then, production figures have fallen rapidly: in 2021, Melfi produced 163,646 cars; in 2024, 62,080; and in 2025, just 32,760. This latest figure represents just over 8 per cent of the 2015 record. In 2024, production was still split between the previous-generation Compass, the 500X and the Renegade, accounting for approximately 40 per cent, 30 per cent and 30 per cent of the total respectively. A year later, the three outgoing models totalled 28,125 units, whilst the DS No. 8 and the new Compass together accounted for 4,635 cars. The DS No. 8 alone ended 2025 with 1,706 units produced.

In the first half of 2026, however, Melfi produced 35,920 cars, compared with 19,070 in the same period the previous year, representing an increase of 88.4 per cent. By way of comparison with the past, in the first six months of 2019 the plant had produced over 152,700 cars, more than four times the current level. According to Fim-Cisl figures, around 33,300 units from the new production cycle are attributable to the Compass, whilst production of the DS No. 8 stood at 1,944 units. The workforce has fallen to around 4,440 employees, following some 2,800 voluntary redundancies since 2021, and over 300 workers were still on secondment to other group sites at the halfway point of the year. In September, the factory is operating on a single alternating shift with production set at 295 cars per day, whilst the ramp-up of DS No. 7 production is being finalised. These figures are a far cry from the annual capacity of around 400,000 cars across twenty shifts specified for Melfi following the 2021 reorganisation.

The Jeep Compass is currently the best-selling model

The new Jeep Compass starts from a completely different position compared with the other models produced at Melfi. Not only because it belongs to the C-SUV segment, being over 10 cm shorter than the other models, but also because it is now in its third generation, having sold over 2.5 million units worldwide. The name is well known outside Europe, and Jeep possesses a commercial strength and brand identity that are hardly comparable to those of Lancia and DS in the current configuration of the two brands.

The model itself also has a more versatile design. Whilst sharing the STLA Medium platform with the other cars produced at Melfi, the Compass retains proportions, a front end and details that are instantly recognisable as Jeep. Added to this is a particularly wide range of powertrains. The range includes the 145 cv e-Hybrid, the 225 cv plug-in hybrid and three all-electric models with 213, 231 and 375 cv, the latter featuring all-wheel drive. This means it can appeal to customers who do not want to recharge, users interested in plug-in hybrids and buyers looking for fully electric vehicles, without tying the model’s commercial success to a single technology. This is probably the most important advantage for Melfi. A factory with over four thousand employees needs, first and foremost, cars capable of generating volume, not merely increasing the number of model variants on the production line. The Compass has already proven it can do this, and the initial figures for 2026 confirm the difference compared to the DS No. 8. The arrival of the No. 7 and the Gamma will broaden the production mix, but at least in the initial phase it will be difficult to assign them the same industrial role as the Jeep.

DS No. 8, a niche SUV

The French flagship is technically one of the most advanced models built at Melfi, with batteries of up to 97.2 kWh, a range that can approach 750 kilometres and power outputs of up to 350 cv. The industrial limitation does not lie in the car’s specifications, but in the combination of its premium positioning, the brand’s still limited recognition and the decision to offer it exclusively as an electric vehicle. The factory’s figures confirm its niche positioning. The 1,706 DS N°8s built throughout 2025 were joined by a further 1,944 in the first half of 2026. These figures may make sense for a premium flagship model, but far less so when considered in relation to the production requirements of a plant such as Melfi. Even DS as a whole remains a brand with modest sales figures. In the first half of 2026, it registered around 13,800 cars in the EU, EFTA and the UK, down by almost 20 per cent on the same period in 2025. The DS N°7, on the other hand, could achieve higher sales figures. The previous model accounted for around half of DS’s European sales, and the new generation, measuring 4.66 metres in length, does not follow the N°8’s exclusively electric approach. Alongside the battery-powered versions, offering a range of up to 740 kilometres, there is in fact a 145 cv hybrid model – a solution potentially better suited to current market volumes.

The Mystery of the Lancia Gamma

The new Lancia Gamma measures 4.67 metres in length, 1.89 metres in width and 1.66 metres in height, and is built on the same STLA Medium platform. Here too, Stellantis has moved away from the previous all-electric approach, opting instead for a multi-energy range. The 145 cv hybrid is joined by all-electric versions with 230 and 245 cv, as well as a 375 cv all-wheel-drive variant. Technically, the range is therefore much better suited to the market than an exclusively battery-electric (BEV) model. The problem, however, is primarily a commercial one, as the brand founded by Vincenzo Lancia is attempting to rebuild its European presence after years in which it had remained largely confined to Italia and dependent on a single model, the Ypsilon. It was not until 2024 that the brand began its return to the main continental markets, starting with Belgium and the Netherlands, followed by France and Spain, whilst Germany was included in the plan at a later stage. This means that the Gamma is entering the D-segment without being able to rely on a customer base or brand awareness comparable to that of the German premium brands, or even that of Jeep. The figures confirm the complexity of the situation: according to ACEA data (based on combined Lancia/Chrysler figures), European registrations fell from 44,877 cars in 2023 to 32,651 in 2024 and to 11,754 in 2025. The decline over the last year was therefore 64 per cent. This figure coincides with the completion of the transition from the previous Ypsilon to the new generation. In the first six months of 2024, the old Ypsilon had still recorded 24,709 registrations in Italia alone, whilst according to Dataforce figures, the new generation finished 2025 with just under 12,000 units across Europe.

In 2026, the first signs of recovery began to emerge. In the first six months, Lancia/Chrysler recorded 6,831 new registrations, representing a 5.2 per cent increase.

Lancia Gamma and Peugeot 3008

Looking at the official images of the Lancia Gamma alongside those of the Peugeot 3008, the shared STLA Medium platform is not the only noticeable similarity. The two cars are the same width at 1.89 metres, very similar heights – 1.66 metres for the Lancia and 1.64 for the Peugeot – and, above all, the same fastback crossover design, with high side panels, a forward-set cabin and a roofline that slopes down towards a striking rear end. The Gamma, however, is longer, at 4.67 metres compared to 4.54 metres, and features a distinctive front end, lighting units and body panels. These are therefore not simply two rebranded models, as was the case, for example, with the Toyota Yaris and Mazda 2, though the similarities are numerous. Using the same architecture across multiple brands is precisely the economic rationale behind platforms such as STLA Medium, but it becomes a more delicate matter when one of the models must simultaneously rebuild the value of a premium brand, as is the case with Lancia.

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The true indicator of Melfi’s revival will not, therefore, be the number of new models announced, but how many cars actually roll off the production lines each day. In 2015, the figure stood at 390,000 over twelve months. In 2025, the figure was just 32,760. The first half of 2026 finally shows an upturn, but with 35,920 units, it remains less than a quarter of the level recorded in the same period of 2019. The good news, however, comes from the build quality at Melfi. As we were able to test during our first hands-on experience with the Jeep Compass PHEV and electric models – which we also tested on unpaved surfaces – the SUVs made in Melfi are every bit as good as their German premium rivals in terms of assembly and attention to detail.

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