Stellantis Zaragoza: A Roadmap Through Transition and Growth

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Stellantis Zaragoza faces a new inspection year as the plant resumes operations on Tuesday, August 16. It marks the tenth reaffirmation in its four-decade history and aims to meet the future with clear guarantees during a period of heightened uncertainty for the automotive sector. More than 5,000 workers return with hopes that the 2022-2023 school year will bring less disruption, more investment, and steady livelihoods. The stakes extend beyond the factory itself to the regional industry and the community economy, and El Periódico de Aragón analyzes the challenges ahead.[Cited from El Periódico de Aragón]

1. New models on the horizon

Figueruelas anticipates a major development with two new models approved for the plant. The Crossland X and Citroën C3 Aircross are slated to be replaced as production ends in 2024, and a smooth transition is essential. A strong signal could come this fall as the site is set to receive more than 42 million euros in PERTE funding to accelerate its digital and sustainable transition. The Peugeot 208 and the electric version of Lancia Ypsilon appear poised to strengthen the lineup at Figueruelas. The first is already a top seller this year, while the second remains under evaluation. Together with the Renault Captur and Peugeot 208, these vehicles would join the Opel Corsa, which led Europe’s best-selling car list in June. Yet the flagship model at Figueruelas, first produced in 2020, will need continued confirmation to keep Zaragoza at the industry’s forefront.[Cited from El Periódico de Aragón]

In parallel, the fate of one versus two assembly lines remains a question for Figueruelas. Stellantis plants across Europe predominantly run a single line, with Zaragoza and Vigo as notable exceptions. The group’s new platforms, focused on electric vehicles, suggest a shift away from gasoline models by 2026. If line 1 remains the primary hub for Crossland X and Aircross, line 2 would handle all other models (Corsa, Peugeot 208, and Lancia Ypsilon). PERTE projects do not specifically mandate electrification, but the strategic direction is clear. The arrival of new models, the Corsa approval, and the decision on line configuration will heavily influence employment levels at a time when automation and electrification could temper workforce needs. Before the holidays, production at Figueruelas exceeded 1,800 vehicles per day.[Cited from El Periódico de Aragón]

2. A question of lines and volume

Figueruelas faces 2022 with uncertainty about whether one or two assembly lines will shape its future. The plant has been an exception to Europe’s single-line approach, and the ongoing transition to electric platforms raises questions about capacity. If the group leans into a dual-line setup, it could accommodate a broader mix of models; if not, line 2 might become the exclusive path for all vehicles. Electrification projects within PERTE do not specify the line structure but reflect a broader push toward emission-free vehicles. The outcome will influence job creation or reduction as the industry moves into a new era of electric mobility. Production at Figueruelas stood above 1,800 vehicles daily before the holidays.[Cited from El Periódico de Aragón]

3. Redefining energy use

The Aragon plant plans to solidify its energy strategy this year. About 80 percent of its power comes from renewable sources, including photovoltaic and wind energy, prior to 2024. Cutting energy costs remains a core driver to strengthen competitiveness, and new statements on this issue are expected after the holidays. The initial phase involved deploying around 35,000 solar panels across 163,000 square meters, which is projected to prevent about 4,200 tons of CO2 from entering the atmosphere.[Cited from El Periódico de Aragón] The energy crisis across Europe has pushed many firms to reduce expenses, and Figueruelas benefits from ample land to deploy renewable projects within the plant’s sphere of influence.[Cited from El Periódico de Aragón]

4. Semiconductor challenges

Meanwhile, the Zaragoza site remains hopeful that the chip shortage will ease. The lack of microprocessors has shaved production at Figueruelas by more than 120,000 vehicles since early 2021. The works council head, Rubén Alonso, notes that recovery might mirror the last three years without production stoppages. Geopolitical tensions stemming from the war in Ukraine and the ongoing US-China frictions following Taiwan-related events could echo past disruptions for the industry.[Cited from El Periódico de Aragón]

5. Funding for electric projects

Stellantis Zaragoza is poised to gain 42.4 million euros from PERTE for electric and connected vehicles. Managed by the Figueruelas plant and involving up to 23 technology partners across six regions, including substantial contributions from Aragon, the initiative plans to assemble new electric models from 2023. The total investment in Figueruelas is projected to exceed 223 million euros, enabling projects not only for the parent company but also for its subsidiaries.[Cited from El Periódico de Aragón]

6. New agreement and union elections

Industrial relations and consensus with unions will significantly influence the plant’s future. Two milestones stand out this year: the union elections in October and renewed collective bargaining negotiations that will shape working conditions for more than 5,000 workers in the coming years. Historically, the factory has enjoyed a strong union presence to navigate pandemic-related delays and ongoing semiconductor challenges. Trade unions are set to play a decisive role in Aragon’s largest industry as the sector transitions to electric mobility, advances in technology and autonomy, and faces a major energy challenge. Inflationary pressures could shape the outcomes of collective bargaining, and a flexible leasing approach might emerge as a practical path for the Aragon plant, setting a potential example for others.[Cited from El Periódico de Aragón]

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