Stellantis expects production at its French factories to fall by about 11 percent over the next three years, marking one of the most significant adjustments to its industrial footprint in the country since the merger that created the automaker in 2021.
Trade unions said the company shared internal estimates last week showing that output across its five assembly plants is projected to drop to roughly 587,800 vehicles by 2028. Two union officials confirmed the figures, adding that they align with an earlier report published by the Financial Times.
The decline is not evenly distributed. According to one union source, three of the five plants are set for reductions, with Poissy — once a flagship site producing compact and mid-range models — facing the steepest drop. Poissy has already been under pressure this year after Stellantis temporarily halted production at the site, as well as at the Mulhouse plant, due to weakening consumer demand across Europe.
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These stoppages signaled a deeper concern about excess capacity in the region, something Stellantis has been wrestling with since the slowdown in EV sales and the deceleration of Europe’s auto market.
The automaker’s outlook could still shift depending on decisions expected from Brussels on December 10. The European Commission is preparing fresh guidance on CO? rules, including adjustments that may give carmakers more flexibility on emissions compliance while offering additional support measures for the European industry. Stellantis, which has a wide lineup spanning hybrids, petrol models, and EVs, is watching the regulatory process closely. Any change in emissions targets, deadlines, or hybrid credits could influence product allocations at its French plants.
The market context around Stellantis in France is already showing signs of stress. New data released on Monday revealed that Stellantis vehicle registrations fell 5.5 percent in November. This decline pushed its French market share down to 25.3 percent from nearly 27 percent in November last year. France is one of Stellantis’ most important markets, and a sustained drop in registrations can influence broader manufacturing decisions, especially at plants operating on tight margins.
Even with the production headwinds, Stellantis posted a 13 percent rise in third-quarter revenue — but the company has warned that the improving topline does not fully reflect its mounting operational challenges. Under new CEO Antonio Filosa, Stellantis has begun restructuring parts of its portfolio, triggering one-off charges linked to changes in its product and strategic plans. These charges include billions of euros booked in the first half as the company adjusts its EV rollout, trims less profitable projects, and rebalances its platform strategy.
Filosa, who will present his full business plan early next year, has already taken steps to steady the group’s direction. He has signaled a pragmatic tilt in favor of hybrids and petrol engines, reflecting persistent demand in regions where EV uptake remains sluggish. He has also pushed to revive established nameplates such as the Jeep Cherokee SUV, responding to consumer interest in models with longstanding brand value rather than newer experimental designs. His broader mandate is to refocus Stellantis’ lineup and cut unnecessary costs without triggering sweeping job cuts in key countries such as France and Italy.
Stellantis’ French operations — which include plants in Poissy, Mulhouse, Rennes, Hordain, and Sochaux — have historically been tightly linked to government policy and labor negotiations. France remains sensitive to any reduction in industrial activity, especially in the auto sector, where production has steadily declined over the past two decades. Any projected reduction in output tends to spark debate about state support, EU policy, and long-term industrial competitiveness.
The looming EU decisions complicate matters further. European manufacturers have been lobbying aggressively for more realistic emissions rules, arguing that rapid enforcement of EV-only pathways risks accelerating job losses, eroding competitiveness, and boosting the advantage of cheaper Chinese imports. Stellantis, which has warned repeatedly about EU-China trade dynamics, is among the companies most exposed to these shifts.
For now, the company’s estimates suggest that French production will decline even as Stellantis tries to cushion the blow through model adjustments and strategic recalibration. The next phase of EU policy could determine whether the automaker pares back even more capacity or whether it can stabilize output by leaning more heavily on hybrids and traditional combustion engines over the next several years.