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Stellantis to Pause Production at Five Factories Amid Battery Shortage and Slowing Demand

Stellantis will temporarily stop production at five of its factories in France and Italy due to a shortage of large-capacity batteries and reduced demand for certain models. The disruptions are linked to recent market shifts triggered by rising fuel prices following conflicts in the Middle East.

Battery Shortage Affects Electric SUV Production

The battery supply issue mainly impacts Stellantis plants in France. The Sochaux factory, which builds the Peugeot 3008 SUV and its electric version, the e-3008, will pause production from October 23 to 30. Similarly, the Rennes plant will halt operations from October 22 to 30. Rennes produces the new Citroën C5 Aircross, including the high-end plug-in hybrid variant that pairs a 230 hp electric motor with a 97 kWh battery.

This particular battery is capable of delivering up to 677 km of range (WLTP), but its scarcity is delaying the rollout of this model in some European markets. Stellantis sources these batteries from Automotive Cells Co (ACC), a joint venture involving Stellantis, TotalEnergies, and Mercedes-Benz. Despite efforts to boost output by bringing in specialists from China, production gains have yet to fully address the shortage.

Other Production Pauses Linked to Demand and Costs

At the same time, the Mulhouse plant, responsible for making Peugeot 308 and 408 models including the 308 SW estate, will stop production in the second half of October due to weaker customer demand. The Poissy plant, which manufactures DS3 and Opel Mokka, will also suspend operations briefly from October 19 to 23 for similar reasons.

Meanwhile, Italy’s Mirafiori factory faces a production halt from October 19 to 30. Stellantis attributes this pause to the high energy costs and low sales of the Fiat 500 hybrid made there.

Previously, the Melfi plant in Italy had to pause due to shortages of other components. It produces the Jeep Compass, along with the DS 7 and the upcoming Lancia Gamma, which share similar mechanical components.

Market Shifts Prompt Temporary Adjustments

The adjustments come amid sharp increases in petrol and diesel prices in Europe caused by geopolitical tensions in the Middle East. Fuel in Spain and France has reached record highs, with prices near €2 per litre in Spain and above €2.3 in France.

Stellantis had not anticipated the scale of the battery shortage or the sudden drop in demand for some models. The company is now taking steps to align production better with current market conditions.

More details from Stellantis are expected as these production breaks conclude and battery supply conditions evolve.

Source: motor.es