Stellantis is leaning towards increasing manufacturing of its standard Peugeot e-208 full-electric small hatchback in Spain regardless of stress from the French authorities so as to add output in France, in accordance with individuals acquainted with the state of affairs.
French Finance Minister Bruno Le Maire desires Stellantis to make the compact mannequin domestically and has been discussing the matter with CEO Carlos Tavares, mentioned the individuals, who requested to not be recognized citing the personal nature of the talks.
Stellantis at the moment builds the e-208 in Trnava, Slovakia, and is now mulling an enlargement of its plant in Zaragoza, northeastern Spain, the place it already makes small vehicles together with the Opel Corsa, the individuals mentioned. A last choice hasn’t been made.
Non-electric variations of the 208 are additionally in-built Kenitra, Morocco, the place Stellantis has lately invested tons of of hundreds of thousands of euros to broaden manufacturing.
Governments throughout Europe are combating for automaking jobs because the shift to battery energy upends the trade. Securing manufacturing of a mass-market automobile just like the 208 could be a coup as a result of it’s now Europe’s best-selling automobile, having ended the 14-year reign of the Volkswagen Golf in 2022.
Spain is amongst international locations which have turn into extra aggressive for EV manufacturing funding due to favorable tax circumstances and comparatively low labor and power prices.
The French authorities is working with Stellantis and its friends to find meeting of as many autos as doable in France, a finance ministry official mentioned, declining to elaborate. A spokesman for Stellantis declined to remark.
Stellantis has pledged to supply 12 EVs in France, however they’re largely bigger, higher-end fashions just like the e-308 compact sedan and e-408 midsize fastback sedan. After Renault mentioned it’s going to assemble its electrical R5 compact automobile at house, Paris is hoping Stellantis can even construct extra finances autos within the nation to assist counter inflation, the individuals mentioned. The e-208 begins at round 35,000 euros ($38,623) in France.
Stellantis earlier this month mentioned it expects to rent 1,200 individuals in manufacturing, engineering and gross sales in France this yr.