In October, Stellantis will temporarily reduce or suspend production at several French plants. The reason was interruptions in the supply of batteries for electric vehicles with an increased power reserve, as well as weaker-than-expected demand for some models, Bloomberg writes.
The Sochaux plant, which produces the Peugeot 3008, will shut down from October 23 to October 30. The company in Rennes, which produces Citroën C5 Aircross, will be idle from October 22 to October 30.
The company explained that the demand for electric vehicles with an increased power reserve remains high, especially among corporate customers. However, the available battery stocks are not enough to fulfill all orders, so Stellantis is forced to adjust production plans in order not to produce cars in configurations for which there is currently no stable demand.
This is especially true for the C5 Aircross model: the version with an increased power reserve is gradually entering new markets, and production has to be adjusted to meet real needs.
Other platforms will also be affected by the stops. The Mulhouse plant will operate intermittently during the last two weeks of October due to lower demand for the Peugeot 308 and a number of other models. In addition, the Poissy plant will be shut down from October 19th to 23rd.
Stellantis continues to face supply difficulties from Automotive Cells Company, a joint venture with Mercedes—Benz and TotalEnergies that manufactures batteries. Chinese specialists were even invited there to increase efficiency and reduce waste. ACC claims that supplies are meeting the demands of Stellantis as production increases.
Production problems arise against the background of the carmaker's difficult situation in Europe. Rising fuel prices are supporting interest in electric vehicles, but Stellantis is also under pressure due to a shortage of components, high energy costs and a decrease in demand for hybrid vehicles at enterprises in Italy.
Against this background, the company's shares fell by 3.5%, and the drop since the beginning of the year has reached 59%.