Stellantis will cease car assembly at its Poissy plant near Paris by 2028, repurposing the site for component manufacturing and parts recycling with a €100mn investment. The Île-de-France facility, operational since the 1930s and once home to thousands of workers, will retain around 1,000 jobs through voluntary departures, per the company’s statement. This marks a pivotal shift as the automaker grapples with faltering European sales and a €22bn charge from unwinding its electric vehicle expansion.

The decision aligns with Stellantis’ broader restructuring, including CEO Antonio Filosa’s upcoming strategy to reclaim US market share and counter Chinese rivals. While the Poissy plant remains operational in a reduced capacity, Stellantis is separately exploring expanded collaboration with Dongfeng, its former Chinese joint venture partner, though the Poissy site is excluded from these talks.

Industry-wide, automakers like Ford, Nissan, and Volkswagen are reportedly engaging Chinese firms such as Geely and BYD to utilize underused European plants amid sluggish demand. The Poissy closure underscores widening pressures on traditional manufacturing hubs as the sector pivots toward EVs and cost efficiency.

Unions, including CFDT, emphasize the need for “substantial” new activities at Poissy to secure its future, highlighting tensions between legacy operations and modern industrial demands.