Carmaker Stellantis to pause production at French factories over battery shortage

Stellantis to Pause French Production Due to Electric Car Battery Shortage

Stellantis Factory Shutdowns and Battery Supply Issues

By Dominique Patton

Production Pauses at French Factories

Sept 29 (Reuters) - Stellantis will pause production at three of its French factories for at least a week, the automaker said on Tuesday, due partly to a shortage of batteries for electric vehicles.

Sochaux Factory Shutdown

The factory in Sochaux in eastern France, which produces the Peugeot 3008 and Peugeot 5008 SUVs, will shut from October 23 to 30 because of short supply of long-range batteries, the company said in a statement.

Strong Demand and Supply Challenges

"Demand for these versions is strong — particularly among fleet customers — and continues to exceed current supply capabilities. Against this backdrop, we are temporarily adjusting our production schedule to remain aligned with market needs and avoid building up vehicle inventory that does not match customer demand," Stellantis said, adding that it was a one-off measure.

Rennes Factory Closure

The Rennes factory will also close from October 22 to 30 for the same reason, with the situation particularly affecting the Citroën C5 Aircross, said Stellantis. 

Battery Supply Chain and Production Details

Automotive Cells Co (ACC) Partnership

The company sources long-range batteries from Automotive Cells Co (ACC), a joint venture it owns along with Mercedes and TotalEnergies. ACC has a plant in France, but dropped plans for Italian and German sites amid lacklustre demand for EVs in recent years. That demand has picked up this year, boosted by high fuel prices since the outbreak of war in Iran. 

Battery Production Progress

"Unfortunately we are not yet receiving enough of the batteries, despite big progress in ACC's production," a Stellantis spokesperson said. 

ACC said its production of modules in September will be close to its output for the whole of 2025.

"While we continue to ramp up, industrialization and scaling are clearly well underway, and we are meeting the commitments made to our client Stellantis, with module delivery levels aligned with their requirements," an ACC spokesperson said.

Additional Plant Closures and Industry Impact

Mulhouse Plant Halt

Stellantis also said its Mulhouse plant will halt production from October 15 to 30, for reasons unrelated to battery shortages.

Mirafiori Plant and Broader Implications

The stoppage at the three French facilities comes on top of a two-week halt scheduled for late October at Stellantis' Mirafiori plant in Turin, where workers will be placed on furlough.

Previous Stoppages and Market Demand

The site also faced stoppages in August and September which were attributed to a shortage of engine components, but unions have pointed to weaker-than-expected demand for the Fiat 500 city car produced at Mirafiori. 

(Reporting by Mateusz Rabiega in Gdansk, Gilles Guillaume and Dominique Patton in Paris and Giulio Piovocari in Milan. Editing by Mark Potter)