Stellantis says it will invest more than €1 billion, roughly $1.1 billion, to turn its Mulhouse factory in eastern France into a major hub for designing and building three new Peugeot vehicles, with production slated to begin in 2029.
The commitment shores up the future of a long-running plant that had faced uncertainty and gives fresh political momentum to French President Emmanuel Macron, who had previously touted the project. Stellantis, owner of Chrysler, Jeep, Ram, Dodge and European brands including Peugeot, Fiat and Opel, is signaling it plans to keep a meaningful slice of its manufacturing footprint in France even as the industry races toward electrification.
$1.1 billion to remake Mulhouse into a design-and-build hub
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This isn’t just a promise to keep an assembly line running. Stellantis says Mulhouse will take on a dual role: engineering and production for Peugeot, one of the group’s flagship European brands.
That matters in an era when automakers often shuffle models between plants or quietly scale back operations. By pairing local design work with manufacturing, Stellantis is positioning Mulhouse as a strategic site rather than a stopgap.
The timeline is clear: the three new models are expected to roll off the line starting in 2029. That runway gives the company time to retool for new technologies, especially electric drivetrains, where European automakers are under intense pressure to keep up with fast-moving rivals.
Three new Peugeots, one site, an efficiency play
Stellantis hasn’t identified the three Peugeot models it plans to build at Mulhouse. But the decision to concentrate investment on a single brand at one plant is telling.
Stellantis oversees a sprawling portfolio of about a dozen brands worldwide. Instead of spreading money across multiple nameplates and factories, the company is betting on a focused approach, consolidating production to boost output, streamline operations, and cut per-vehicle costs.
Historically, French plants often specialized by brand. Centralizing three Peugeot models in Mulhouse marks a shift toward a more flexible, cost-driven manufacturing strategy, one that Stellantis likely sees as necessary to justify an investment of this size.
A political stamp of approval, and a path to public support
By publicly confirming Macron’s earlier statements, Stellantis is turning political messaging into a concrete corporate commitment. For the French government, which has pushed hard to keep industrial jobs at home, the announcement is a win.
For Stellantis, it also strengthens the case for public backing. In Europe, large industrial projects frequently involve negotiations over subsidies, tax breaks, and workforce training support, tools governments use to keep factories competitive as they transition to electric vehicles.
Why Mulhouse: location, workforce, and the EV transition
Mulhouse sits near the borders of Germany and Switzerland, close to major engineering talent pools and automotive supply chains. Stellantis is also building on existing infrastructure and an experienced workforce, advantages that can make upgrading a plant faster and cheaper than starting from scratch.
The investment is expected to go well beyond cosmetic modernization. Retooling for EV-era production can mean new assembly equipment, expanded testing capabilities, redesigned workstations, and potentially new adjacent facilities tied to batteries or electric motors.
For the region, the message is straightforward: France’s auto industry isn’t disappearing, it’s being rebuilt. If Stellantis hits its 2029 target, Mulhouse could become a key test of whether legacy European manufacturing centers can keep jobs and relevance in the electric age.
