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Lancia: Return to rallying and production of the Gamma in Melfi

More news from Lancia: They are quietly returning to basic rally sport with the Y, for which an Ypsilon Rally4 HF was developed. Additionally, there will be a revival of the traditional Lancia Corse department. And: The Gamma will be built in Melfi.

Lancia shows a first teaser image of the Gamma, which will be produced in Melfi. | Photo: Lancia
Lancia shows a first teaser image of the Gamma, which will be produced in Melfi. | Photo: Lancia
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Melfi was developed in 1994 for the then-new Fiat Punto and currently mainly manufactures Jeep Renegade and Compass as well as the Fiat 500 X. From 2026, it will also produce the new Lancia Gamma, which will likely please the Italian government. The press release states:

“The decision to manufacture the new Gamma in Melfi demonstrates Stellantis' commitment to promoting Italian products. This not only strengthens Lancia's connection to its Italian roots but also highlights the importance of investing in local production facilities to develop innovative products.”

With the Gamma, Lancia returns to the Melfi plant

During an event in Balocco, it was confirmed that the Lancia Gamma will be developed in Italy and produced at the Stellantis plant in Melfi. This plant already produced the second generation of the Ypsilon between 1995 and 2003. The Melfi plant is located in the structurally weak region of Basilicata, but according to insiders, it employs many young motivated Italians and has played a central role in the national and international automotive production of the FCA arm of Stellantis for years.

The new Lancia Gamma will be produced from 2026 on the multi-energy platform STLA Medium, which also underpins the Peugeot 3008/5008 or Opel Grandland, as well as the future Citroen C5 Aircross. It can thus be assumed to be around 4.6 meters in size and have a rather high-riding CUV body style.

The new Lancia Gamma is another step in the brand's renewal process following the success of the new Ypsilon. Luca Napolitano, CEO of Lancia, stated:

“The new Lancia Gamma is a milestone on our journey into the future. It embodies our commitment to sustainability and performance and represents the elegant line that has defined Lancia for decades. Through production at the historic Melfi plant, we strengthen our connection to Italy's rich automotive heritage and advance our vision of an electrified future. The Gamma will represent Lancia's core values: innovation, style, and the pursuit of the highest quality.”

With its highly automated processes and a clear focus on sustainability, Melfi is set to continue to play a key role in Stellantis' electrification strategy. This announcement is part of Lancia's comprehensive renewal strategy, which includes a return to Europe with a network of over 70 sales outlets in six countries, including France, Belgium, and Spain.

What does this mean?

Carlos Tavares is retiring as planned, which closes a window of opportunity for Lancia: the brand must return to higher (ideally six-figure) sales figures and capture the attention of EU markets as quickly as possible, otherwise it could be history forever. After the Y and Gamma, a new Delta is also expected to come, which would cover the bulk of the relevant market volume. We’re keeping our fingers crossed…

Translated automatically from German.
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