Stellantis To Pause Mulhouse Production Amid Weak European Demand

Stellantis will temporarily halt vehicle production at its Mulhouse Assembly Plant in northeastern France from October 27 to November 2. The automaker confirmed the move this week, citing slowing demand across Europe and the need to manage inventories better heading into the end of the year.

The stoppage will affect roughly 2,000 of the 4,700 workers employed at the facility. The Mulhouse plant currently builds the Peugeot 308, Peugeot 408, and the DS7 crossover, all of which have faced softening sales as the European market continues to cool.

This isn’t the first time Stellantis has adjusted its output in recent months. Earlier this fall, the company temporarily halted operations at its Poissy plant near Paris and its Pomigliano plant in Italy for up to three weeks. The automaker pointed to the same challenges—an overall tough European market environment and higher-than-expected vehicle inventories.

The Mulhouse site has long been an important hub for Peugeot. In 2007, it employed over 10,000 people. By 2011, that number had dropped to around 8,500. Today, the headcount is less than half of what it once was, reflecting a broader trend of shrinking European manufacturing as Stellantis adapts to electrification and shifts in global competition.

For now, Stellantis says the shutdown is temporary. But as the European market remains under pressure, the company may continue to fine-tune its output to balance production with real-world demand.

Source: Times Live