Stellantis, the world’s fourth-largest automaker, is planning for a meaningful shift in its European production footprint, anticipating an 11% reduction in vehicle output at its French facilities by 2028. The projected downsizing, revealed in internal assessments and confirmed by sources to Reuters, reflects a broader industry trend of addressing overcapacity and adapting to evolving consumer preferences amid the ongoing transition to electric vehicles. These adjustments come as Stellantis navigates a challenging European market, marked by recent temporary production halts and declining registration numbers in key countries like France.
Stellantis anticipates a roughly 11% reduction in automobile production across its French facilities by 2028, according to internal company assessments cited by union sources. This adjustment forms part of a broader strategy by the world’s fourth-largest automaker to address overcapacity within the European automotive market.
The projections, presented to union representatives last week and confirmed by two independent sources to Reuters, estimate a total output of 587,800 vehicles from Stellantis’ five French assembly plants by 2028. The move comes as automakers globally reassess production strategies amid shifting consumer demand and the transition to electric vehicles.
The Poissy plant is expected to experience the most significant decrease in production volume, with a projected decline impacting three out of the five Stellantis manufacturing sites in France.
Union officials note that these estimates are subject to revision following key decisions expected from the European Union on December 10. These decisions are anticipated to introduce greater flexibility in meeting CO₂ emission targets and provide additional support for the European automotive industry.
Stellantis declined to provide an official comment on the matter.
The company has already implemented temporary production halts throughout the year in response to weak demand in Europe. As reported by money.bg in late September, Stellantis temporarily suspended production at its Mulhouse plant from October 27 to November 2.
The Mulhouse facility employs approximately 2,000 people and manufactures the Peugeot 308, Peugeot 408, and the DS 7 from the premium DS brand.
Stellantis stated at the time that the measure was necessary to “adapt production volume to the difficult market situation in Europe” and to optimize inventory levels before the end of the year.
Just days prior, Stellantis announced nearly identical reasons for temporarily halting operations at two other European plants for a period of three weeks.
Recent data for November indicates that Stellantis vehicle registrations in France decreased by 5.5%, reducing its market share to 25.3% from nearly 27% a year earlier.
Despite a 13% increase in revenue during the third quarter, the group also recorded one-time expenses related to the restructuring of its product and strategic plans under the leadership of new CEO Antonio Filosa. He has already announced initial steps toward a wider offering of hybrid and gasoline models, as well as the return of iconic vehicles like the Jeep Cherokee. A comprehensive new business plan is expected in early 2025.
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