European governments are pushing hard to shift production toward electric cars, signaling a future where the auto industry is electric-first. The year 2035 looms as the moment when sales of internal combustion vehicles end in several markets, and France is applying intense pressure on Stellantis to keep Peugeot’s electric 208 in its borders. This model sits at the heart of Europe’s best-selling pure plug-in segment, with production centralized at the Figueruelas plant in Zaragoza. There is no hybrid option planned for this line, and the company shows no sign of reversing course.
Stellantis chief executive officer Carlos Tavares has framed the situation clearly. Bloomberg’s latest updates, drawing on Aragon plant unions and industry sources, reveal continuing tensions. France’s press highlights a stubborn standoff between the group and government officials, with Macron’s administration eager to see a new generation of electric models, potentially arriving in 2026 or 2027. The company’s stance remains that a formal decision will come in November, with potential subsidies from the state being considered in this broader negotiation. Les Échos outlines a government fund that could support French business interests in this transition.
To protect industrial plans, Stellantis has opted to keep details discreet about the second electric model announced for late 2022, which some observers have linked to the Peugeot e-208. Despite substantial evidence, the company has held back from a definitive public confirmation while preparations continued.
Everything points toward the twin electric cousin of the Opel Corsa heading to Figueruelas for assembly, with a product launch tied to the French brand’s strategic push. Mass production in Zaragoza is slated to begin in the near future, aligning with the team’s return from summer breaks. The broader plan aims to synchronize with a major Catalan and Aragonese supply chain effort that has kept local suppliers engaged for some time.
The group has allocated an STLA platform and invested around 160 million euros in Rennes to support this transition. Today, the thermal Peugeot 208 is distributed across Stellantis plants in Trnava, Slovakia, and Kenitra, Morocco, while the electric variant is predominantly produced at Trnava. Figueruelas is poised to take over and initiate production of a second zero-emission vehicle after the Corsa-e, which has been assembled there for three years. The project dovetails with the launch of a new electric model from the French brand Lion. The Zaragoza plant is expected to begin mass production by late summer, just as the summer休 period ends.
Local suppliers have long-term contracts to provide components for this model, underscoring the regional supply chain’s critical role in the rollout. If a return to a French plant occurs, it would likely be tied to the next generation of the model, anticipated in 2026 or 2027. The new generation will be fully electric and built on the STLA Small platform, with Zaragoza as a strong candidate hosting the system, although the final decision remains pending.
Stellantis has committed to producing 12 electrified models in France and investing in electric motor production at Tremery and a battery factory in Douvrin. Another plant, Metz, is expanding production of electric dual-clutch transmissions, while Rennes has received the STLA Medium platform with a total investment of 160 million euros, aimed at launching an electric SUV by 2025. When asked about France’s push for the Peugeot e-208, Tavares praised the country’s projects and investments, noting that the company has already done a great deal to support the French automotive sector. He emphasized that further concessions were not on the table and that jeopardizing the company was not an option.
The French government’s pressure on Stellantis regarding the electric model has sparked some unrest among unions during previous negotiations. The most recent collective agreement at the Figueruelas plant has helped secure the factory’s future beyond 2030, stabilizing the workforce amid the ongoing shift to electrification. The broader regional strategy reflects a multi-year, multi-plant transition that ties together Spain, France, and other European production sites in a coordinated push toward a fully electrified lineup. (Bloomberg; Les Échos; industry sources)
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