After the revival of the Lancia Ypsilon, the Stellantis group is continuing its mission to breathe new life into the Italian brand by announcing the anticipated return of the Lancia Gamma, which will be produced at the Melfi plant in southern Italy starting in 2026.
Like the Ypsilon, this new Gamma bears no relation to its predecessor. It will be built on Stellantis’ STLA Medium platform, the same one used for the Peugeot 3008, Opel Grandland, and the upcoming Jeep Compass.
However, unlike those models, the new Gamma will be a family-oriented sedan coupe featuring electric-only powertrains. It is expected to measure around 470 centimeters in length, with options for either front-wheel or all-wheel drive and a maximum driving range of approximately 700 kilometers.
The original Lancia Gamma was introduced in 1910 and was one of the brand's first cars, but the name became particularly famous during the brand's golden age under Fiat. The original Gamma was produced from 1976 to 1984 in both coupe and fastback versions known as the "Berlinetta," both designed by Pininfarina.
The Melfi plant, which will manufacture the modern Gamma, previously produced the second generation of the Ypsilon from 1995 to 2003. In recent years, it has been home to the Jeep Compass and Renegade, but it will soon be repurposed to produce models based on Stellantis’ new platforms. In addition to the Gamma, the new Jeep Compass and another upcoming DS model will also be produced at the Melfi facility.
Stellantis hopes to leverage the return of Lancia and the modernization of the historic plant to mend its rocky relationship with the Italian government. Company executives have emphasized that the new Gamma "highlights Stellantis' commitment to promoting products made in Italy." However, they also recognize that this car alone will not deliver the production volumes and revenues the local government hopes for.
Our take
Stellantis currently faces numerous challenges, from turmoil at the top levels of the company to accumulating losses and uncertainties surrounding the future of several brands within its broad (perhaps overly broad) portfolio. The announcement of the Gamma's return—still two years away—seems primarily aimed at conveying a message of "business as usual" to reassure worried shareholders about the company's future. Regardless, it is unlikely that Lancia will be the brand to fill Stellantis' cash reserves anytime soon, and company leaders are probably aware of this reality.
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