Stellantis begins new Jeep Compass production in Italy to revive sales

MILAN (Reuters) -Stellantis started production of the new generation Jeep Compass SUV at its Melfi plant in southern Italy on Wednesday, among a raft of new models the carmarker hopes will revive sales and reverse falling output in the country.

Built on the STLA Medium platform, the new Compass is initially being produced as a hybrid and a fully electric model with a range of 650 kilometres, Stellantis said. A plug-in hybrid version will follow in early 2026. First customer deliveries are expected by the end of this year.

A bestseller for Jeep and parent Stellantis, the Compass SUV has sold 2.5 million units to date.

The new Compass will be sold in 60 countries across Europe, the Middle East, Africa, Asia, Australia and New Zealand. For the American market, Jeep will build the Compass in the U.S., to avoid import tariffs imposed by President Donald Trump's administration.

Stellantis' output in Italy is expected to fall to just over 310,000 vehicles in 2025, making less than 200,000 passenger cars, according to forecasts of FIM Cisl union.

That would compare with 283,000 cars produced last year in the country, which was the lowest in almost 70 years.

Other new models, including the new hybrid version of the small Fiat 500 which goes into production next month at Turin's Mirafiori complex, will help reverse the output decrease as part of Stellantis' plan presented at the end of 2024.

"This confirms this country is strategic in the group's global activities," Stellantis' managing director for Italy, Antonella Bruno, said.

The plan, however, is not expected to bring material benefits before next year, as first new models announced will only reach full production in 2026 and 2027.

Melfi, located in Italy's southern region of Basilicata, is the first manufacturing site for Jeep models outside North America, having started manufacturing the brand's cars in 2014.

(Reporting by Giulio Piovaccari;Editing by Elaine Hardcastle)