Stellantis has announced plans to invest more than €1 billion in France to support the development and production of three future Peugeot models built on the company’s new STLA One platform. The vehicles, which will be offered as fully electric or hybrid models, will be produced at the Mulhouse manufacturing facility in Alsace beginning in 2029.
The investment represents a significant step in Stellantis’ long-term electrification strategy and reinforces France’s role as a key manufacturing and technology hub within the company’s global operations.
STLA One Platform at the Center of Stellantis’ Strategy
Part of Stellantis’ recently unveiled FaSTLAne 2030 strategic plan, the new STLA One architecture has been designed as a modular and scalable platform capable of supporting multiple vehicle sizes and powertrain configurations.
According to the automaker, STLA One aims to accelerate vehicle development cycles while delivering approximately 20% cost efficiency improvements through greater standardization and economies of scale.
The three upcoming Peugeot models will be the first vehicles to launch on the new platform, making the French brand a key player in Stellantis’ next-generation product strategy.
Peugeot Targets Europe’s Largest Passenger Car Segment
The new vehicles will compete in Europe’s highly competitive C-segment, which accounts for roughly 30% of all passenger car sales across the region.
By expanding its presence in this important market category, Stellantis aims to strengthen its position in Europe while accelerating the transition toward electrified mobility. The upcoming Peugeot models will be available with either fully electric or hybrid powertrains, giving customers greater flexibility as demand for low-emission vehicles continues to grow.
The decision also highlights Peugeot’s strategic importance within the Stellantis portfolio. The brand is considered one of the company’s four global brands with the strongest potential for both volume growth and profitability.
Mulhouse Plant Secures Long-Term Future
Production of the three new models will take place at Stellantis’ Mulhouse facility in eastern France, a site that currently employs approximately 4,500 people.
The investment is expected to improve factory utilization rates and provide long-term stability for the plant as the automotive industry undergoes a rapid transformation toward electrification.
By assigning production of next-generation electric and hybrid vehicles to Mulhouse, Stellantis is reinforcing its commitment to maintaining a strong industrial footprint in France while supporting the country’s transition to cleaner mobility.
Government Support Helps Drive Investment
Stellantis also credited the French government’s policies supporting vehicle electrification and industrial competitiveness as important factors behind the investment decision.
Measures designed to encourage the purchase of clean vehicles, combined with broader “Made in Europe” industrial initiatives, have helped create favorable conditions for large-scale automotive investments.
Antonio Filosa, CEO of Stellantis, said the decision reflects confidence in both the company’s workforce and France’s role within Stellantis’ global manufacturing network.
The investment aligns with the company’s broader FaSTLAne 2030 roadmap, which focuses on developing new vehicle platforms, advanced powertrains, and technologies that can be deployed across global markets.
Looking Ahead
With more than €1 billion committed to the project, Stellantis is laying the groundwork for a new generation of Peugeot vehicles that will play a central role in the company’s European growth strategy.
As production preparations move forward ahead of the 2029 launch, the three new Peugeot electric and hybrid models are expected to become among the first vehicles to showcase the capabilities of the STLA One platform, while helping Stellantis expand its footprint in one of Europe’s most important vehicle segments.
