Stellantis N.V. (NYSE: STLA) announced plans to launch production of small, affordable electric vehicles at its Pomigliano d'Arco plant in Italy beginning in 2028.

The automaker said the vehicles, called E-Cars, will be designed for European markets and manufactured in Europe. The company positions the project as addressing what it describes as a contraction in the small affordable car segment in Europe.

"The E-Car is a concept that finds its natural match in the small car success that runs deep in our European Stellantis DNA," said CEO Antonio Filosa. "Our customers are calling for a revival of small, stylish vehicles, proudly produced in Europe, which are also affordable and environmentally friendly."

Stellantis said the E-Car designation represents European, Emotion, Electric and Environmental friendliness. The company stated the European Commission has recognized the potential of this vehicle segment to support European design and manufacturing jobs.

The Pomigliano plant has previously manufactured vehicles including the Fiat Panda. Stellantis said the facility's assignment to the E-Car project could involve significant production volumes.

The company indicated the electric vehicles will incorporate what it calls world-class battery electric vehicle technologies developed with selected partners. Stellantis said this approach aims to improve affordability and accelerate time-to-market.

The announcement represents part of the automotive industry's broader transition toward electric vehicles. Stellantis operates multiple brands including Fiat, Jeep, Peugeot, Ram, and Chrysler.