Stellantis to bid farewell to automotive production at Poissy plant in 2028

The major automotive factory in the French city of Poissy, which has operated for many years and previously hosted giants such as Ford, Chrysler, and Peugeot, is entering a deep transformation process. The Stellantis group has announced its decision to completely halt the factory's vehicle assembly operations as of 2028. Behind this change lies a significant contraction in the European automotive market and excess production capacity.

The facility, which has an annual capacity of 500 thousand vehicles, had historically become one of the symbols of the region and the brand. However, in a recent statement made by the company management, it was stated that the approximately 20 percent contraction in market conditions and the "excess capacity" problem in the sector made this radical step necessary.

Starting in 2028, automobile assembly will no longer take place at the Poissy plant. Instead, the facility will host auxiliary industry production and recycling operations. The processing of used vehicles and the production of body parts will come to the fore.

NEW INVESTMENT IN CIRCULAR ECONOMY GOAL

Stating that the facility will not close its doors completely, Stellantis announced that it will make an investment of approximately 100 million euros. With this investment, the factory will take on a new role centered on the circular economy and sustainable production. It is aimed to provide environmental benefits through the evaluation of used automobiles and parts production. This strategic shift is considered an indicator that the firm is transforming not only its production but also its business model.

FUTURE OF EMPLOYEES UNCERTAIN

The transformation plans to be implemented at the factory also bring serious concerns regarding employment. In the first phase, approximately 600 employees are expected to be laid off through voluntary departures or retirement. However, unions are concerned about the future of both the 1,900 full-time workers and the personnel working for suppliers.

Union representatives point out that the factory will have a maximum employment capacity of 300 people after the transformation, noting that the majority of current employees are at risk of losing their jobs. For this reason, they are warning that strikes may be held in the coming weeks.

The new investments and this radical change in the factory's function will mark the beginning of a new era in the automotive ecosystem in Poissy. Both the region and the sector will closely monitor the social and economic impacts of this transition.

News Source: 12punto