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Stellantis announces dramatic reduction in production

On Tuesday, November 26, 2024, Stellantis, a giant in the automotive industry bringing together Peugeot, Fiat, Opel and other brands, confirmed a hard blow for its French factories: a drop in production of 20 % planned for the current year. The figures are clear. The initially planned production of 766,000 vehicles will be reduced to only 605,000 unitsas revealed by The Echoes. This situation increases the pressure on a sector already weakened by significant industrial and economic challenges.

The social and industrial impact: no closure, but doubts

Stellantis tried to reassure by affirming that no factory closures in were planned in the short term. The CFE-CGC union emphasizes, however, that this guarantee is limited to 2027leaving uncertainties for the future. The () and Douvrin (Pas-de-) factories, producing SUVs and thermal engines respectively, are particularly in the crosshairs.

Despite commitments to preserve activity, particularly through the transition to electric vehicles, tensions are emerging. In Douvrin, for example, only 50 employees out of the hundreds concerned were able to be integrated into the neighboring ACC factory, dedicated to batteries. This weak integration illustrates the limits of reconversion plans.

A poorly negotiated electric shift?

Stellantis' strategy is heavily criticized for its lack of clear vision. While the automotive sector is undergoing a transformation towards electric, the group seems to be struggling to adapt its French production sites to this revolution. The CFE-CGC calls for massive investments and diversification of activities to avoid economic and social asphyxiation of territories dependent on the group's factories..

Furthermore, this crisis calls into question the competitiveness of the French automobile industry compared to other better prepared European countries. German manufacturers, although also in difficulty, appear to have a strategic lead in batteries and electric vehicles.

Worrying economic outlook

If Stellantis promises to maintain an industrial base in France, projections for the future remain gloomy. Indeed, this drop in production comes at a time when the entire European automotive industry is struggling to survive in the face of high energy costs, disrupted supply chains and geopolitical uncertainties..

Questions arise: how long will Stellantis be able to maintain these commitments in the absence of sufficient profitability on the French sites? Are the recent closures announced in the United Kingdom, such as that of the Luton factory, a foretaste of what could happen in France?

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