MILAN, Oct 7 (Reuters) - Automaker Stellantis

said on Monday it would start production of the new version of

its best-selling Jeep Compass mid-sized SUV next year, at its

Melfi plant in southern Italy.

The model will be based on Stellantis' ( STLA ) Medium platform,

allowing for flexibility on different propulsion configurations.

It will be available over time in fully electric, hybrid and

internal combustion engine versions, the carmaker said in a

note, adding this would also support its affordability.

The start of the new Jeep Compass production is expected to

help Stellantis ( STLA ) to, at least partially, revive its declining

output in Italy, which has been affected in recent months by a

mix of soft market demand and factory reconfigurations for new

model launches.

Output at Stellantis' ( STLA ) Italian plants fell more than 30% in

the first nine months of the year, with a 62% decline for Melfi,

according to data by FIM-CISL union. Full-year output in the

country is now seen below 500,000 vehicles in 2024, versus

751,000 last year.

In Melfi, Stellantis ( STLA ) will also start the production of a new

model under its premium DS brand at the start of 2025, while

further new mid-sized vehicles are scheduled for the facility in

following years.

The carmaker also said on Monday that it would extend

production of the new Jeep Compass to North America and other

markets in 2026.

(Reporting by Giulio Piovaccari; Editing by Emelia

Sithole-Matarise)