After several years of decentralization, France and Europe in general are once again trying to attract business to your territory. Within the EU itself, several countries are competing for the privilege of hosting (or re-hosting) companies, such as France and its Battery Valley or even Spain, which has also invested in attracting electric vehicle and battery manufacturers.

Stellantis, which was born from the merger of the French group PSA and the Italian-American FCA, sees itself in the center battles between France and Italy. One million cars in France, one million in Italy: governments on both sides of the Alps are putting pressure on Stellantis for the group to fully rebuild its factories, thereby symbolizing the reindustrialization of the two countries.

The choice for Stellantis?

A mass exodus to Spain, Eastern Europe and the Maghreb has cut local production at the world’s fourth-largest manufacturer, and the pandemic-induced slowdown in the car market and shortages of electronic components have done nothing to remedy that.

“The willingness of France and Italy to help us is obvious”said Carlos Tavares, CEO of Stellantis, on July 5. “But frank support sometimes turns into significant pressure”.

While visiting Rome, Carlos Tavares promised to increase car production in Italian plants with the ultimate goal of producing one million cars a year.

” Our intention is to place more models in Italian factories“Starting with Melfi in the south of the country,” he said. Thus, Carlos Tavares announced his intention ” To produce a fifth model in addition to the four already announced ” for this site, ” subject to increased productivity“.

The Italian government, led by Giorgia Maloney, made the protection of national industry its horse. The two sides have established a working group to reach an agreement on the transition by the end of the month “as part of” a new European industrial policy that will protect production and employment“, he continued.

Remember that Stellantis only produces 685,753 cars in Italy last yearand the last two models presented by Fiat, the 600e SUV and Topolino, will be manufactured in Poland and Morocco, respectively.

The bell at the foot of the Hexagon

The Italian initiative echoes that of French Economy Minister Bruno Le Maire, who on Wednesday asked Stellantis to show ” patriotism by repatriating production of small electric cars such as the Peugeot 208 to France.

At the Paris Motor Show in October 2022, Carlos Tavares promised French President Emmanuel Macron that continues to invest in its French plantsand that 12 electric models will be produced there, including the Peugeot 308, 3008 and 408 electric.

The French government also considers the transfer of car production one of its priorities: Emmanuel Macron has promised that France will return to two million cars produced in 2030compared to 1.3 million in 2022.

If the French factories of Stellantis produced 678,400 cars in 2022as in Italy, Stellantis also aims to achieve ” more than a million cars and components“, as well as platforms, by 2024 in France.

But the little electric 208, number one in its segment in Europe with almost 50,000 units sold in 2022, will soon be built at a plant in Zaragoza, Spain. The economy minister would like it to be produced in France, like its future Renault 5 rival.

Read also:
• Fiat overtakes Peugeot in Stellantis
• What is the future of Opel in the Stellantis group?
• Peugeot 208: how many kilometers to sell?