Jeep has commenced production of the third generation Compass at its Melfi plant in Italy, marking a significant milestone for both the brand and the facility that’s become a European benchmark for flexible automotive manufacturing. The new Compass, built on Stellantis’ advanced STLA Medium platform, offers buyers unprecedented choice with powertrains ranging from hybrid to plug in hybrid to fully electric, delivering up to 375 horsepower and 650 kilometers of range.
The start of production represents more than just another vehicle launch. It’s a statement about Italy’s strategic importance in Stellantis’ global operations and demonstrates how traditional automotive plants can adapt to the industry’s electrification transition. Melfi embodies what Jeep calls “freedom of production,” an ultra flexible assembly line capable of adjusting in real time to market demand, including converting to 100% battery electric vehicle output if necessary.
Built on the cutting edge STLA Medium platform shared with models like the DS N°8 and Peugeot E 3008, the new Compass combines class leading capability with iconic Jeep design and advanced technology. The platform’s efficiency shows in the vehicle’s impressive 0.29 drag coefficient, making it the most aerodynamic Jeep SUV ever produced. That aerodynamic refinement maximizes efficiency without compromising the interior space or practicality that buyers expect from the C SUV segment.
Buyers can choose from a 145 horsepower e Hybrid model, a 195 horsepower plug in hybrid variant, or fully electric versions delivering up to 375 horsepower with all wheel drive capability. This wide range of options reflects Jeep’s core belief in freedom of mobility for every journey, allowing customers to select technology matching their specific needs rather than forcing them into a one size fits all solution.
The electric version launches initially with a 157 kilowatt front wheel drive system paired with a 74 kilowatt hour battery pack. A more powerful 276 kilowatt all wheel drive variant will follow later, giving the Compass more power than comparable all wheel drive Peugeot models, which offer up to 239 kilowatts. That power advantage matters for buyers who value both electric efficiency and the off road capability Jeep built its reputation on.
Technical specifications showcase the Compass’s versatility. Ground clearance exceeds 200 millimeters, optimized approach and departure angles enable confident off road navigation, and water fording capability reaches 480 millimeters. These capabilities, combined with Selec Terrain systems, 360 degree protection, and intelligently positioned sensors, enhance both safety and off road performance while preserving the class leading comfort expected in this segment.
The Melfi plant brings substantial heritage to this production launch. In 2014, it became Jeep’s first manufacturing site outside North America, initially producing the Renegade and later the Compass, including pioneering 4xe plug in hybrid versions. Since then, over 2.3 million Jeep vehicles have rolled off Melfi’s production lines, establishing the facility’s credibility in building quality vehicles that meet exacting Jeep standards.
The complex covers 1.9 million square meters and employs more than 4,600 people with an average seniority exceeding two decades. That workforce stability brings deep expertise crucial for maintaining quality standards during the transition to new platforms and powertrains. Full cycle integration, from stamping to painting, plastics, assembly, and battery production, makes Melfi one of the most advanced and flexible automotive plants on the European continent.
High automation levels are complemented by human expertise, ensuring top quality standards while continuous sustainability innovations reinforce the plant’s role as a strategic hub in Stellantis’ decarbonization roadmap. The facility serves as a testing ground for cutting edge industrial technologies that will soon be implemented across other Stellantis facilities worldwide.
Among these innovations are advanced laser systems ensuring 100% precision in bodywork alignment and high resolution electronic cameras continuously monitoring door profiles throughout production. The site is also adopting environmentally friendly manufacturing methods, including the innovative 4 Wet paint process, which eliminates an entire coating layer to reduce environmental impact significantly.
Sustainability commitments extend across the entire operation. Energy efficient heat pumps are already installed in paint booths, with plans to expand their use to other areas. Meanwhile, Melfi is increasing its self generation capacity through photovoltaic panels, wind turbines, and a biomethane system that recycles organic waste from local farms. The ambitious goal is reaching 54 megawatts of renewable energy, equivalent to 70% of the plant’s total energy needs, by the end of 2030.
That renewable energy target reflects Stellantis’ broader commitment to reducing carbon footprints across its manufacturing network. As pressure intensifies on automakers to address climate impacts, facilities like Melfi demonstrate how legacy industrial sites can transform into more sustainable operations without sacrificing production capability or quality.
The new generation Compass will rank among the most widely available models in Jeep’s global lineup. Units produced in Melfi will be marketed across 60 countries worldwide, spanning Europe, the Middle East, Africa, Asia, Australia, and New Zealand. That global reach positions Italy as the production hub for a vehicle designed to meet diverse regulatory requirements and customer preferences across multiple continents.
Antonella Bruno, Stellantis’ head of operations in Italy, speaking from the Melfi plant, acknowledged that the past year “has been intense, not without difficulties.” However, following the closure of discussions with Italy’s Ministry of Economic Development last December, all parties worked hard to address global sector challenges while implementing a comprehensive plan for Italy that confirms the country’s strategic importance in Stellantis’ worldwide activities.
Thanks to this Italy Plan, all Stellantis plants producing vehicles now have precise production missions, including Atessa, Turin, Pomigliano, Cassino, Modena, and of course Melfi. The same clarity applies to engine and transmission facilities at Turin, Verrone, and Pratola Serra, plus the Teksid foundry operations. Bruno emphasized that concrete facts demonstrate Stellantis’ commitment to Italian manufacturing.
This context matters because Stellantis has faced criticism in Italy over reduced output levels from Italian plants in recent years. As owner of the national champion Fiat brand plus other operations across the country, the company’s production decisions carry significant economic and political weight. Melfi’s output had fallen to under 100,000 units annually before this new production program, raising concerns about the facility’s long term viability.
The new Compass production, alongside other STLA Medium based vehicles planned for Melfi, should substantially increase the plant’s utilization rates. Between 2024 and 2026, Stellantis plans to produce five new midsize models at Melfi, reportedly including the next generation Jeep Compass, a successor to the discontinued Opel Insignia, a new DS 9 flagship, the next generation DS 7, and the Lancia Aurelia, all built on the STLA Medium platform.
This model diversity showcases the platform’s flexibility and Melfi’s capability to handle multiple brand requirements simultaneously. The aging Jeep Renegade and Fiat 500X, currently produced at Melfi, will phase out between 2024 and 2025, along with the second generation Compass that’s been around largely unchanged since 2016. Their replacements represent significant technological advancement and should better position these brands for evolving market demands.
For Jeep specifically, the Compass has achieved over 2.5 million sales worldwide, making it a cornerstone of the brand’s success in Europe and globally. The third generation needs to maintain that momentum while adapting to dramatically different market conditions than its predecessor faced. Electric vehicle regulations are tightening, competition is intensifying, and consumer preferences are shifting faster than traditional product cycles can easily accommodate.
The multi energy approach hedges against uncertainty about how quickly different markets will adopt full electrification. Some regions are moving rapidly toward battery electric vehicles through aggressive incentives and regulations, while others lag due to infrastructure limitations or policy choices. By offering hybrid, plug in hybrid, and full electric options from the same platform and production line, Jeep and Stellantis can adjust production mix as market demands evolve.
Jeep brand sales in Europe through September 2025 exceeded 100,000 units, demonstrating continued strength despite intense competitive pressure. The Avenger model has won orders from Italian government fleets including the Fire Brigade, Carabinieri, and Guardia di Finanza, showing that Jeep’s reputation for capability extends beyond consumer markets into professional applications.
With production now underway, the new Compass marks what Stellantis describes as a new chapter for Jeep in Europe. Designed, engineered, and built in Italy, it sets new benchmarks in the C SUV segment worldwide, offering customers what the company claims is unmatched versatility, capability, and innovation. Whether those claims prove accurate depends on how well the vehicle performs against established competitors and newer entrants flooding this popular segment.
The timing matters. The compact SUV segment represents enormous volume opportunity but also fierce competition. Buyers in this segment have more choices than ever, from traditional automakers’ offerings to new electric vehicle specialists. The Compass must differentiate itself through Jeep’s legendary off road capability, brand heritage, and now its flexible powertrain options that let buyers choose their preferred path to efficiency.
For Melfi and its workforce, this production launch brings welcome stability after years of uncertainty about the plant’s future. The multi year product pipeline extending through 2026 provides visibility that’s become increasingly rare in European automotive manufacturing. Success with these new models could position Melfi as a cornerstone facility for Stellantis’ STLA Medium platform vehicles serving global markets.
