Stellantis commits one billion euros to develop three new electric Peugeot models at its Mulhouse factory in France.
MULHOUSE: Stellantis said Tuesday that it would spend one billion euros to develop and build three new electric or hybrid Peugeot models at its Mulhouse factory in eastern France.
The investment, part of a 60 billion euro plan to revive profitability over the next five years, confirms a plan for the under-used site announced by President Emmanuel Macron last month.
The new models will be compact sedans and SUVs to bolster Peugeot’s presence in a “key segment” that accounts for 30% of European car sales, Stellantis said.
European carmakers are scrambling to remain competitive on their home turf while shifting to clean-energy models, with Chinese rivals in particular making inroads with less expensive vehicles.
Stellantis’s chief Antonio Filosa acknowledged earlier this year that it had overestimated demand for EVs, taking a massive 22 billion euro write-down of its efforts and prompting a strategic review.
It has since announced a new EV production platform, STLA One, to reduce production costs while speeding up new model production.
The world’s fourth-largest automaker is now focusing on four of its 14 brands — Peugeot, Fiat, Jeep and Ram — while reducing its European production capacity by 20%, or around 800,000 fewer vehicles per year.
It is also teaming up with Chinese partners to bolster sales in both France and abroad, with Dongfeng recently signing a joint venture to share manufacturing, sales and engineering operations in Europe.
