Stellantis to Invest Over €1 Billion to Transform Mulhouse Plant for Next-Gen EV Production Starting 2029

Stellantis Group plans to invest over €1 billion in its Mulhouse plant in eastern France to produce a new generation of electric vehicles based on the all-new STLA One platform, starting in 2029. The platform is designed for small, compact, and midsize passenger cars, with the first model being the Peugeot 208 hatchback. Currently, the Mulhouse facility produces both battery-electric and internal combustion engine versions of models including the Peugeot 308 hatchback and estate, as well as the Peugeot 408 midsize coupe-sedan—all built on the EMP2 platform originally developed by the former PSA Group. According to product roadmaps, the Peugeot 308 lineup will be fully renewed before 2030 and transitioned to the STLA One platform. Meanwhile, production of the DS 7 compact SUV will cease, with its successor, codenamed NO.7, shifting to Stellantis’ Melfi plant in Italy. This investment forms part of France’s broader strategy to accelerate electrification. The French government is actively promoting the use of electricity across mobility, industry, transportation, and buildings. In 2024, it relaunched a social leasing program for low-income households, offering EVs at monthly rates under €100—a scheme currently supporting approximately 50,000 EV sales annually. Previously, during the initial phase of the COVID-19 pandemic in 2020, France introduced an €8 billion automotive industry rescue package, accompanied by Europe’s leading EV purchase incentives and the installation of thousands of charging points in regions previously underserved by charging infrastructure.