Lancia Gamma
The revived Gamma will be manufactured in Italy
Following on from the Epsilon, the Gamma is currently under development as the second model for the new Lancia. Based on the Stellantis Group’s STLA Medium, it will be equipped with a variety of power units, including a fully electric powertrain. The photo shows the previous Gamma, which was produced until 1984.
At the launch event for the Epsilon Rally 4 HF held in Barocco, Italy, the Stellantis Group’s Lancia brand reaffirmed that the Gamma, the second model currently under development for the new Lancia, will be produced at the Stellantis plant in Melfi, southern Italy.
The Melfi plant in Basilicata has long been a key part of Italian automotive production, combining Italian artistry with cutting-edge manufacturing technology. Starting in 2026, the Melfi plant will begin production of the new Gamma, which will be based on the next-generation STLA medium EV platform and feature multiple power units, including a fully electric powertrain.
The decision to produce the new Gamma in Melfi reflects the Stellantis Group’s emphasis on manufacturing in Italy, and by actively investing locally, the company also aims to highlight the roots of the Lancia brand, which was born in Italy.
Currently operating as Jeep’s European production base
The Melfi plant was the production base for the previous Ypsilon until 2003. Currently, it manufactures the Jeep Compass and other models, but it has been decided that from 2026 it will once again become a production base for Lancia.
The Melfi plant, which began operations in 1994, has been Lancia’s main production base for many years and is currently responsible for the production of the Jeep Compass and Jeep Renegade. In addition to its highly automated production processes, the plant also places a strong emphasis on sustainability, making it a key part of the Stellantis Group’s electrification strategy.
The Melfi plant produced the second-generation Epsilon from 1995 to 2003. The production of the Gamma was recently assigned to the plant due to its high production quality and its potential to accommodate new production systems, including electric powertrains. Furthermore, the continued production of Lancia models at the Melfi plant will ensure local employment is maintained.
Lancia CEO Luca Napolino commented on the decision to produce the Gamma at the Melfi plant:
“The new Lancia Gamma marks an important milestone for the Lancia brand, combining sustainability and high performance while celebrating the elegance that the brand has long been known for. By producing the Gamma in the historic Melfi plant, we are not only strengthening our connection to Italy’s rich automotive tradition, but also advancing our vision for the future, including electrification.”
