Stellantis stops production due to lack of orders

An unprecedented disruption is shaking the Stellantis assembly line in Mulhouse. Manufacturer suspends printing presses for seven days due to lack of full order book. This decision sends a strong signal in a sector already shaken by the stagnation of the European market.

European market in crisis: why Mulhouse closes its doors for a week

The Stellantis group, owner of Peugeot, Citroën, DS Automobiles, Opel, Fiat, Jeep, Alfa Romeo, Lancia and Maserati, has chosen to slow down in Mulhouse. A strategic rather than symbolic choice: the Alsatian site assembles Peugeot 308, 408 and DS 7, key models in its portfolio. However, demand is declining. An internal study, released by Motor1, shows a decline in orders for these silhouettes between January and September 2025 of 18%. The phenomenon is not isolated: the group’s overall European sales fell by around 12% in the same period.

Three factors explain this decision:

• 🚗 Surstock : distribution fleets are full of thermal vehicles.
• ⚡ Electrical transition : customers, waiting, hesitate between petrol and electric.
• 💶 Persistent inflation : Purchasing power is eroding, pushing back car purchases.

Beyond the Mulhouse case, Stellantis has already interrupted its lines in Poissy, Zaragoza and even Melfi. The goal: maintain profitability without saturating parking lots with unsold cars. According to the note sent to the social partners, the disorganization will not lead to immediate job cuts. However, the unions remain vigilant, as Le Figaro reminds us.

Analysts point out that the decision, however unusual, follows an industrial logic: shutting down printing presses costs less than inflating inventories. The challenge remains the recovery of stagnant demand while preparing the transition to electric, the official priority of the Franco-Italian-American giant.

Worth remembering: this “technical break” testifies to an industry that is navigating by sight, stuck between the still dominant thermal vehicles and the electric cars that are struggling to convince outside of urban niches.

Social consequences: when 2,000 employees enter partial unemployment mode

The factory siren didn’t sound Monday morning. In the empty locker rooms, the fear of an uncertain future mixes with resignation. The partial activity regime guarantees 84% ​​of the gross salary. Despite this network, the concern remains palpable. Déborah Schorr, delegate of the FO, told France 3 Grand Est: “the climate is tense”. The Mulhouse site, already marked by pace fluctuations in 2023 and 2024, once again sees its workforce decreasing.

To reduce the cut, Stellantis has opened a catalog of accelerated training courses:

• 🔋 Low voltage battery pack assembly.
• 🖥️Electronic diagnosis via tablet.
• 🌱 Ecodesign of plastic parts.
• 🤝 Coaching in lean production.

Around a hundred volunteers benefit from three to five day modules, funded by OPCO 2i. These sessions are in line with the future power line planned in the K building, which is expected to host the STLA Medium platform from 2027. HR sees this as an opportunity to retain talent and secure local know-how, a crucial element in the face of intra-group competition – in particular the recently modernized Tychy plant in Poland.

The experience of Sochaux, which closed three days earlier, serves as an example. There, similar training had reduced distrust. The unions want to believe that the same strategy will bear fruit in Alsace.

Final analysis: the chain stop affects men before machines; how the company supports its teams foreshadows the cohesion essential during the electric transition.

Stellantis industrial strategy: store less to remain profitable

Boss Carlos Tavares cultivates a golden rule: agility. Temporary suspensions, once rare, are becoming commonplace. The information site Actu.fr recalls that six of the group’s European sites have already suffered slowdowns in 2025. Mulhouse is therefore not an isolated case.

Behind the scenes, two dashboards dictate the pace: vehicle turnover rate at distributors and storage cost. The most affected models are the compact thermal ones. However, these silhouettes form the heart of Mulhouse. For the executive, the equation is simple: one day of downtime is better than a month of excess inventory.

• 📊 Fewer shares = reduced fixed capital.
• 🚚 Just-in-time flow = faster delivery of ordered models.
• 💸 Profitability = margin preserved even with lower volumes.

This adjustment benefits the brands in the portfolio: Peugeot limits the discount on its 308, DS Automobiles avoids internal cannibalization with the DS 4 assembled in Rüsselsheim, while Opel gains additional slots for the electric Astra line. In this diagram, Fiat, Jeep or Alfa Romeo, less dependent on Mulhouse, observe the maneuver to adjust their tariffs.

Noteworthy fact: Stellantis maintains planned investments in the Douvrin and Termoli gigafactories. The Mulhouse ruling does not call these projects into question, a sign that the long-term strategy remains intact.

Key point: the era of rhythm at all costs is over; place ourselves in the era of controlled flexibility.

Threat for the French sector: a senatorial report raises the alarm

On the same day that Mulhouse goes into standby, a Senate report, led by elected Republicans, speaks of the “risk of disappearance” of national automotive production. The main argument: the market share of French factories is collapsing compared to Eastern Europe and China. The RMC editorial team cites an implacable figure: 1.4 million cars produced in France in 2019 compared to 960,000 in 2024.

Mulhouse symbolizes this change. By the late 1990s, the site was producing more than 400,000 vehicles per year. In 2024 the counter stops at 210 thousand. The factory will therefore have to reinvent itself or relocate more volumes. The report identifies three levers:

1. 🧑‍🔧 Rapid retraining of workers towards electromechanics.
2. 🌐 Public aid conditioned on a minimum volume of local production.
3. 🏭 Digital modernization to gain competitiveness.

The deputies underline that France is not doomed: the Toyota plant in Onnaing or the Renault plant in Douai demonstrate that competitive production remains possible. The issue is all the more crucial as border areas, such as the Haut-Rhin, are largely dependent on industrial employment.

The Senate report also proposes a 10% tax on imports of vehicles produced outside the EU to finance aid for electric conversion. A divisive measure, but one that highlights the growing tension around French industrial employment.

Interim conclusion: the survival of the French sites will require a combination of increased productivity, technological upgrading and clear public commitment.

Towards electrification: what training to prepare for the post-thermal season?

Anticipate rather than endure: this is the creed adopted by the Mulhouse management. The week-long stopover becomes a life-size laboratory. The proposed modules tap “green” skills, essential for assembling the next generation of vehicles. This transition is part of Stellantis’ Dare Forward 2030 strategy, which aims to achieve 100% electric sales in Europe within five years.

The training is carried out in collaboration with UTBM (Belfort-Montbéliard University of Technology). On the program:

• 🔧Disassembly-reconditioning of hybrid gearboxes.
• 🔌Level 2 high voltage certification.
• 📡 OTA (over the air) computer network.
• ♻️ Battery recycling management.

Stellantis plans to allocate 3 million euros for this skills plan. A cost considered marginal compared to the 30 million invested last year to modernize the superstructures. This equipment will also have to encourage internal mobility: some operators of the molding line will be able to join, after training, the electric motor prototyping cell located in Metz-Borny.

Behind these figures lies a challenge: maintaining a qualified workforce rather than losing it to other sectors. The examples of Tesla in Berlin or CATL in Hungary show that the demand for these profiles is growing rapidly. Mulhouse, an ancient bastion of the combustion engine, therefore aims to become a stronghold of electric propulsion.

Implicitly there is the environmental issue. Local associations welcome the intention, but ask for guarantees on the recycling of batteries. A project that Stellantis promises to open in 2026, in collaboration with the Veolia company.

Key phrase: more than just a stage, this ski holiday outlines the learning curve that will determine the sustainability of the Alsatian site.

Why did Stellantis choose the week of October 27th to stop?

The group adjusts its volumes based on peak orders. At the end of October the concessions complete the quarterly balance sheets; it is therefore a good time to reevaluate the shares and prepare for the year-end launches.

Will employees lose money during the shutdown?

Thanks to partial unemployment they receive 84% of their gross salary. Those who undergo the training also receive an internship allowance funded by the OPCO.

Will electricity generation be installed in Mulhouse?

YES. Stellantis has confirmed the arrival of the STLA Medium platform in 2027, as well as a workshop dedicated to battery packs assembled on site.

How does this decision fit into Stellantis’ overall strategy?

It responds to the principle of agility: adapting production to orders to preserve profitability and prepare for electrification without increasing thermal inventories.

Will other French factories suffer the same fate?

Poissy and Sochaux have already suffered disruptions. Stellantis warns that possible one-off adjustments remain possible as long as demand remains fragile.