Lancia Ypsilon Returns: Stellantis Plant in Aragon Drives Renaissance Plan (2024 Update)

This picture. car giant Stellantis confirmed the appointment to the Figueruelas factory this Thursday. This time a new model from the Italian brand Lancia, Ypsilon, as reported by El Periódico de Aragón from the Prensa Ibérica group. The car, which will begin production in the Zaragoza factory with an electric and a hybrid version from April 2022, has advanced with two pieces of information published last November. It is planned to produce about 60,000 units per year and become the third fully plug-in vehicle from this factory next to the Corsican car salon. The Peugeot e-208 had already been included for three years, and it is expected to be released at the end of the third quarter of 2023.

The official announcement followed a day later. Luca Napolitano, CEO of Lancia, visited the Zaragoza plant where he held meetings with national and international suppliers. A prototype of the new Ypsilon was on site under strict image protection measures because the company keeps the model’s design under lock and key. This marks the return of the Italian brand to the European market, where it is currently sold only in its home country.

The news was also shared by the factory leadership during a meeting this afternoon, supporting the new collective bargaining agreement reached last month by both parties, along with the industrial plan that secures the brand’s future after 2030.

Lancia’s CEO, Luca Napolitano, was at the Stellantis Zaragoza plant last Wednesday. STELLANTIS

“We started today a new chapter of our Renaissance plan,” Napolitano stated in a message posted on social media this Thursday. He referred to the company’s roadmap designed to revive the Italian brand, one of Europe’s oldest with 116 years of history, which has faced a challenging period in recent years.

“I’m proud to announce we are ready to start producing our new Ypsilon. It will be the first of three cars in the new Brand’s Renaissance plan. It is scheduled to launch in 2024 as a 100% electric version and a 48-volt hybrid for the market,” he said. The CEO described the Ypsilon as elegant and innovative, more European and very modern. It promises to be an impressive Lancia with a refined interior and exterior, giving the feel of an Italian living room.

Lancia Pu+Ra HPE, the electric car prototype that inspired the next launch of the Italian brand. LANCIA

Electric and premium models

Lancia has outlined a 10-year strategic plan focused on a light and efficient product lineup. The planned New Ypsilon arrives in 2024, with a gamma expansion in 2026 and Delta following, introducing a new model every two years through 2028. By 2026, the brand aims to offer only 100% electric new cars, and by 2028 it intends to sell exclusively fully electric vehicles.

Lancia’s strategy centers on electrification and premium models, with Stellantis coordinating brands under a common commercial direction in Spain, including Lancia, Alfa Romeo, and DS. The Ypsilon will serve as the entry model for a broader range of cars, characterized by larger segments and a more sustainable approach. The electrification process will also explore vehicle sustainability; for example, at least 50% of the cabin touchpads in the new Ypsilon are planned to be ecological.

Aragon suppliers

The automaker has already recognized several suppliers based in Aragon for this new model. Notably, Zaragoza-based Cefa (Celulosa Fabril) contributed to the instrument panel, doors, and center console, along with other components. Since the project is launched from scratch, the local aftermarket will gain momentum alongside the model. The Peugeot e-208 transitioned to Figueruelas but remains on sale, reflecting specific commitments with local component manufacturers.

The new Ypsilon stands as the first car of a new era for Lancia. The Aragon plant, with 41 years of operation, is one of Stellantis’ reference production facilities. It originated two years before the merger of the Italian-American group FCA (Fiat-Chrysler) with PSA (Peugeot-Citroën). The coalition later evolved into Stellantis in 2021. The factory previously aligned with Opel and General Motors and has played a central role since its 1982 inception by the Figueruelas plant.

In line with the Dare Forward 2023 strategy, the company emphasizes a strong commitment to quality and the use of renewable energy in its production processes. In March 2023, the plant celebrated producing its 15 millionth vehicle.

The new Ypsilon is expected to mark a milestone for Lancia as it brings the brand back to Aragon and signals the resurgence of an automaker that has faced a long drought of launches and sales. The aim is to attract a broader, higher-end customer through distinctive design and features that set the car apart in its segment.

Since the end of 2021, Zaragoza has gained momentum in the sector with momentum for the new generation of the long-standing Lancia Ypsilon. This was reiterated in March 2022 by a report from Italian automotive expert publication Passionate Auto Italian.

With this model assignment, Figueruelas is positioned as a leading factory for the auto giant. The Aragon plant now faces the task of migrating existing production platforms CMP and EMP2 from PSA to the STLA Small modular architectures standard for all small models within the group from 2026.