Stellantis Announces €1B Investment in Peugeot Models at Mulhouse but Cuts European Output 20% After €22B EV Write-Down

Stellantis said Tuesday, June 2, that it would spend €1 billion to develop and build three new electric or hybrid Peugeot models at its Mulhouse factory in eastern France. The investment confirms a plan for the under-used Mulhouse site announced by President Emmanuel Macron last month.

The new models will be compact sedans and SUVs to bolster Peugeot's presence in a segment that accounts for 30% of European car sales, Stellantis said.

The €1 billion investment is part of a €60 billion plan to revive profitability over the next five years. Stellantis is the world's fourth-largest automaker. Stellantis's chief Antonio Filosa acknowledged earlier in 2026 that it had overestimated demand for EVs.

The company took a massive €22 billion write-down of its EV efforts and has since announced a new EV production platform called STLA One. Stellantis is now focusing on four of its 14 brands: Peugeot, Fiat, Jeep and Ram. It is reducing its European production capacity by 20%, or around 800,000 fewer vehicles per year.

Stellantis is teaming up with Chinese partners to bolster sales in France and abroad. Dongfeng recently signed a joint venture with Stellantis to share manufacturing, sales and engineering operations in Europe. Antonio Filosa spoke during a press conference to present the new Fiat 500 Hybrid at the Stellantis FIAT Mirafiori plant in Turin on November 25, 2025.