Stellantis is investing more than €1 billion [1] to produce three [2] new Peugeot electric and hybrid models at its Mulhouse plant in France.
This investment signals a critical push by the automotive giant to maintain its footing in the European market. As Chinese manufacturers increase their presence in the region, Stellantis must accelerate the rollout of affordable, high-tech electric vehicles to remain competitive.
The company said the plan on May 26, 2026 [3]. The new vehicle program will utilize the STLA One platform, a modular architecture designed to streamline the production of various electric and hybrid powertrains. By consolidating the manufacturing process at the Mulhouse facility, the company aims to optimize efficiency, and reduce the time required to bring new models to market.
Production of the three new Peugeot models is slated to begin in 2029 [4]. The initiative focuses on a mix of fully electric and hybrid options, reflecting a diversified strategy to capture different segments of the consumer market during the transition away from internal combustion engines.
Financial reports indicate the investment exceeds €1 billion [1], which some sources estimate as over $1 billion [5]. The funding will go toward upgrading the existing infrastructure at the Mulhouse plant to accommodate the specialized requirements of the STLA One platform, and the high-voltage battery systems required for the new fleet.
The move is part of a broader strategy to strengthen the industrial base within France while securing the future of the Mulhouse site. By committing significant capital to this specific plant, Stellantis is anchoring its next generation of Peugeot vehicles in a primary European hub.
“Stellantis is investing more than €1 billion to produce three new Peugeot electric and hybrid models.”
This investment demonstrates Stellantis' urgency to counter the growing threat of Chinese EV imports in Europe. By leveraging the STLA One platform at a dedicated French plant, the company is attempting to achieve the economies of scale necessary to lower prices while maintaining a 'Made in Europe' brand identity for Peugeot.
