Stellantis, the owner of Peugeot, Fiat and Jeep, said on Tuesday it will invest €1 billion in its Mulhouse factory in eastern France to develop and manufacture three new Peugeot electric or hybrid models, starting in 2029.
The move comes as European carmakers grapple with weak demand in China, rising global competition and tariffs. At the same time, Chinese brands such as BYD, MG Motor and Chery are gaining ground in Europe's growing EV market, prompting automakers to invest heavily in new technologies and more affordable models.
The announcement forms part of Stellantis' broader €60 billion strategy aimed at restoring profitability over the next five years. It also confirms plans for the site that were outlined by French President Emmanuel Macron last month.
According to Stellantis, the new vehicles will include compact sedans and SUVs, strengthening Peugeot’s position in a market segment that accounts for around 30% of car sales in Europe.
The new models will be compact sedans and SUVs to bolster Peugeot's presence in a "key segment" that accounts for 30 %of European car sales, Stellantis said.
