Stellantis has confirmed plans to invest more than €1 billion in its Mulhouse manufacturing plant in eastern France, where it will produce three new Peugeot models based on the group’s upcoming STLA One platform beginning in 2029.
The announcement follows comments made last week by French President Emmanuel Macron, who revealed the investment as part of France’s broader industrial and electrification strategy.
The project is expected to strengthen the future of the Mulhouse facility, which employs approximately 4,500 people and currently manufactures several Peugeot and DS models.
New Peugeot Models Planned
According to Stellantis, the Mulhouse plant will produce three Peugeot C-segment vehicles available with both battery-electric and hybrid powertrains.
The models will be built on the group’s newly developed STLA One architecture, a next-generation platform designed to replace five existing vehicle architectures across multiple market segments.
Peugeot will become the first Stellantis brand to utilize the platform.
The company said the new vehicles will support its long-term growth strategy while expanding Peugeot’s presence in one of Europe’s largest passenger vehicle segments.
STLA One Platform to Debut in 2027
Stellantis recently introduced STLA One as a new multi-energy platform designed for B-, C- and D-segment vehicles.
The architecture is intended to streamline vehicle development and reduce manufacturing complexity by consolidating multiple existing platforms into a single system.
According to Stellantis, the platform could deliver cost-efficiency improvements of up to 20% through economies of scale and standardized development processes.
The first vehicles based on STLA One are expected to enter production in 2027, two years before the new Peugeot models begin manufacturing in Mulhouse.
Key Role in FaSTLAne 2030 Strategy
The new investment aligns with Stellantis’ recently unveiled FaSTLAne 2030 business plan, which outlines the company’s long-term product and manufacturing roadmap.
The automaker said Peugeot is one of four global brands identified as having the strongest potential for future growth and profitability within the Stellantis portfolio.
Under the strategy, Peugeot joins Fiat, Jeep and Ram as the group’s lead brands.
Stellantis plans to introduce more than 60 new models and 50 major product updates by 2030 across all powertrain categories.
These launches are expected to include 29 battery-electric vehicles, 15 plug-in hybrid or range-extender models, 24 hybrid vehicles and 39 models equipped with internal combustion or mild-hybrid systems.
Mulhouse Plant Secures Long-Term Future
The investment is expected to improve capacity utilization at the Mulhouse factory while strengthening Stellantis’ manufacturing footprint in France.
The site currently produces the Peugeot 308, 408 and 508, alongside the DS 7, including electrified variants of several models.
Stellantis said the decision reflects its intention to combine vehicle electrification with continued industrial activity in France, which remains a key market for the group.
Linked to European Industrial Policy
The announcement comes as European policymakers continue discussions surrounding industrial support measures aimed at strengthening domestic manufacturing.
France has been among the strongest supporters of proposed “Made in Europe” requirements under the European Union’s Industrial Accelerator Act, which seeks to increase local value creation across strategic industries, including automotive manufacturing.
If implemented, the framework could tie public incentives and procurement programs to locally produced vehicles and components.
Stellantis welcomed the French government’s support for vehicle electrification and industrial development, noting that such policies have contributed to conditions favorable for long-term investment.
Stellantis Highlights French Operations
Chief Executive Officer Antonio Filosa said the Mulhouse investment reflects both the capabilities of the company’s workforce and the strategic importance of France within Stellantis’ global operations.
“France perfectly exemplifies Stellantis’ global strategy, presented in our FaSTLAne 2030 plan, where our global scale, our in-depth local knowledge, and our brands come together to meet and exceed our customers’ expectations,” Filosa said.
The investment marks one of the largest automotive manufacturing commitments announced in France in recent years and reinforces Stellantis’ focus on expanding electric and hybrid vehicle production within Europe.