Stellantis (STLA) in talks to build future EVs in Spain

Spanish newspaper, Cinco Dias reports Monday that American auto maker, Stellantis (NYSE: STLA) is in talks with the Spanish government regarding the production of small electric vehicles in the country.

The report, citing unidentified sources at the Industry Ministry and the carmaker, reports that the company is negotiating with the government conditions of state aid to be granted to the project.

Stellantis is Spain’s largest automotive producer, with about 850,000 cars assembled last year, in factories in Vigo, Zaragoza and Madrid.

Of that total, about 113,000 were full-electric vehicles, Stellantis has said. Future Stellantis EVs will be built on architectures called STLA Small, Medium, Large and Frame (for pickups and large SUVs). The automaker said last week that STLA Large vehicles would be allocated to its factory in Cassino, Italy.

Spain’s incentive program for EV and battery production is known as PERTE, and plans to disburse a total of 3 billion euros ($3.2 billion). Two other automakers, Volkswagen Group and Renault Group, are also seeking funding from the program. In the first phase, 900 million euros will be spent. According Cinco Dias, Stellantis received about 67 million euros in the first round of funding.

Shares of STLA are down 0.80% in mid-day trading on Monday.

By Michael Elkins | [email protected]

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