Stellantis commits €1 billion to French EV production, widening regional disparities

Stellantis has committed more than €1 billion to electric and hybrid vehicle production at its Mulhouse plant in the Alsace region of eastern France, according to reporting from Automotive World on 2 June and Breakingthenews.net on 26 May. The investment will support production of three new Peugeot models based on the new STLA One modular platform, with manufacturing expected to commence in 2029. French President Emmanuel Macron announced the commitment at an event on 26 May, framing it as evidence of the automaker's confidence in French industrial capacity.

The Mulhouse investment represents a significant allocation of capital within Stellantis' European manufacturing footprint at a moment when the group is simultaneously managing production commitments across Italy, France, Germany, and other European nations. Automotive World reported that the commitment includes production of electric and hybrid Peugeot models, underscoring the group's determination to maintain Peugeot as a centerpiece of its European strategy. The STLA One platform, a modular architecture designed to accommodate both combustion and electric powertrains, will underpin multiple models across the Stellantis portfolio.

For Piemonte and northern Italy, the Mulhouse announcement carries implications for Stellantis' broader manufacturing strategy. The group has faced pressure from European regulators, shareholders, and consumers to accelerate electrification while maintaining employment and investment in key production regions. The €1 billion commitment to France, coupled with earlier announcements regarding the Lancia Gamma at Melfi in southern Italy and commercial vehicle expansion, suggests Stellantis is distributing capital across multiple geographies rather than consolidating production in a single region or country.