Stellantis CEO Carlos Tavares has announced that manufacturing the new Alfa Romeo Milano small SUV in Poland rather than Italy will reduce its price by €10,000. This marks a departure from Alfa Romeo tradition, as the Milano is the first model to be assembled outside of Italy since the company was founded in 1910. The decision to produce the Milano in Tychy, Poland, alongside the Fiat 600 and Jeep Avenger, comes amid of clashes with the Italian government and unions over EV subsidies and the volume of production in Italy.
Tavares stressed that manufacturing the Milano in Italy would push its starting price up to around €40,000, limiting its competitiveness in the market. However, when choosing Poland, the price is reduced to 30,000 euros, making it more affordable for consumers. Although the Milano is the only Alfa Romeo model that will currently be built outside of Italy, Tavares confirmed that future models such as the next-generation Stelvio and Giulia will continue to be built in Cassino, central Italy. Stellantis plans to invest over €100 million in Cassino to accommodate European production for its new STLA Large platform.