Stellantis confirms €1 billion investment in France

Stellantis, the parent company of Jeep and Fiat, confirmed on Tuesday a €1 billion investment in France to develop a new production platform called STLA One. The platform will support electric and hybrid vehicle production while reducing costs by 20% to compete with Chinese rivals operating in Europe. The investment will also fund the development and manufacturing of three new electric or hybrid Peugeot models at Stellantis’ Mulhouse factory in eastern France. These models, compact sedans and SUVs, target a key market segment accounting for 30% of European car sales. This initiative is part of Stellantis’ broader €60 billion plan to restore profitability over the next five years. The company previously announced plans to reduce European production capacity by 20%, cutting around 800,000 vehicles annually, while focusing on four core brands: Peugeot, Fiat, Jeep, and Ram. Stellantis is also collaborating with Chinese automakers to strengthen its market position. It recently formed a joint venture with Dongfeng to share manufacturing, sales, and engineering operations in Europe. Additionally, the company plans to partner with Leapmotor in Spain and explore similar arrangements in Italy. The decision follows Stellantis’ €22 billion write-down earlier this year, which stemmed from overestimating electric vehicle demand. CEO Antonio Filosa acknowledged the need for strategic adjustments to remain competitive amid shifting consumer preferences and rising competition from Chinese brands entering Europe.