Stellantis, the proprietor of Peugeot, Fiat and Jeep, mentioned on Tuesday it’ll make investments €1 billion in its Mulhouse plant in japanese France to develop and manufacture three new Peugeot electrical or hybrid fashions from 2029.
The transfer comes as European automakers grapple with weak demand in China, elevated world competitors and tariffs. On the similar time, Chinese language manufacturers similar to BYD, MG Motor, and Chery are establishing themselves available in the market. Europe’s EV market continues to developautomakers started investing closely in new know-how and extra inexpensive fashions.
This announcement is a part of Stellantis. A broader technique of 60 billion euros The corporate goals to revive profitability over the subsequent 5 years. It additionally confirmed plans for the location outlined by French President Emmanuel Macron final month.
Stellantis mentioned the brand new automobiles embrace a compact sedan and an SUV, strengthening Peugeot’s place in a market phase that accounts for round 30% of European automobile gross sales.
Stellantis mentioned the brand new fashions might be compact sedans and SUVs, rising Peugeot’s presence in “key segments” that account for 30% of European automobile gross sales.
European automakers face rising stress as they transition to cleaner automobiles whereas competing with more and more in style Chinese language manufacturers, a lot of which supply lower-priced electrical fashions.
Earlier this yr, Stellantis CEO Antonio Filosa admitted that the corporate had overestimated demand for electrical automobiles. The group subsequently recorded a €22 billion write-down associated to its EV investments and initiated a strategic evaluate.
Stellantis has since introduced its new STLA One electrical car platform, designed to cut back manufacturing prices and speed up the event of latest fashions.
The world’s fourth-largest carmaker is concentrating sources on 4 of its 14 manufacturers – Peugeot, Fiat, Jeep and Ram – whereas reducing manufacturing capability in Europe by about 20%, the equal of about 800,000 automobiles a yr.
The corporate can also be increasing cooperation with Chinese language companions to strengthen gross sales in France and overseas. Chinese language automaker Dongfeng just lately signed a three way partnership settlement with Stellantis masking manufacturing, gross sales and engineering actions in Europe.
