Stellantis invests 100 million euros to keep site near Paris open

[PARIS] Stellantis plans to invest 100 million euros (S$150 million) to transform its Poissy car-assembly plant near Paris, an initiative to keep the site open as the maker of Peugeots and Citroens scales back its European manufacturing operations.

Stellantis, which currently produces the Opel Mokka and DS compact sport utility vehicles in Poissy, will keep making cars at the site through at least the end of 2028, it said on Thursday (Apr 16). Then, it will shift to other kinds of activities, including auto part production, recycling, and 3D printing for special car series.

The company has worked closely with labour unions on the project, which “guarantees an industrial future for the Poissy site at a time of rapid change for the automotive industry”, said Xavier Chereau, the group’s chief human resources and sustainability officer.

The site will shrink in size and Stellantis will work with auto-parts suppliers impacted by the changes, for example Lear and Forvia, it said.

Chief executive officer Antonio Filosa has been conducting an in-depth review of the group’s manufacturing footprint as part of his efforts to stabilise Stellantis, following a period of deep market-share declines.

Stellantis has 12 sites in France and dozens elsewhere in Europe, several of which are underutilised.

Poissy employs about 1,925 people – roughly 1,580 of them active, the group said. Stellantis pledged to retain 1,000 blue-collar jobs in Poissy by 2030, with no layoffs.

The group had already said in November that it would invest 20 million euros to renovate the Poissy stamping workshop, but the lack of clearer prospects had sparked worries among labour groups of an outright closure.

Separately, Stellantis told workers it will shift an engine assembly line dedicated to aftersales from Vesoul, a site in eastern France, to Poissy, which will affect 190 workers, according to the CFDT labour union.

SEE ALSO

Stellantis eyes Dongfeng carmaking deal in Europe, China

Leapmotor expands Stellantis alliance, posts first profit

Stellantis weighs deals with China rivals to shore up Europe

Stellantis plunges after taking 22 billion euros hit on EVs

More

The move is part of an effort to better rationalise its plants, a Stellantis spokesperson said. The site of Vesoul is still hiring, and the 60 workers with long-term contracts affected will be able to find other jobs within the company.

As part of his overhaul, Filosa is seeking to bring in one or more manufacturing partners in Europe to help the group reduce costs, improve plant utilisation and avoid politically sensitive closures. BLOOMBERG