Stellantis to cut french car production by 11% by 2028 amid weak demand

Stellantis plans to cut French car production by 11% by 2028 as weak European demand and overcapacity force the automaker to adjust its output across three of five plants.

According to trade unions citing company estimates, the reduction will primarily affect three of Stellantis’ five French assembly plants, with the Poissy plant expected to see the sharpest decline. Overall output in France is projected to fall to 587,800 units by 2028 as the company addresses overcapacity amid weak demand for cars in Europe. The scale of the reduction may be influenced by upcoming EU decisions on December 10, which are expected to provide more flexibility in meeting CO2 targets and introduce support measures for the European car industry.

Production at three of the five assembly plants, including the Poissy plant, is expected to decline the most. The move is part of Stellantis’ plan to tackle overcapacity as demand for cars in Europe remains subdued. Overall output in France is projected to fall to 587,800 units by 2028.

The reduction may be influenced by upcoming EU decisions on December 10, which are expected to provide more flexibility in meeting CO2 targets and offer support measures for the European car industry. Earlier this year, Stellantis temporarily halted production at Poissy and Mulhouse due to weak European demand. In November, Stellantis vehicle registrations in France dropped 5.5%, bringing its market share to 25.3% from nearly 27% the previous year.

Financially, Stellantis reported a 13% rise in third-quarter revenue, but flagged one-off charges related to strategic and product plan adjustments under CEO Antonio Filosa. Filosa’s plans include returning popular models like the Jeep Cherokee and refocusing on hybrid and petrol vehicles.