Over 10,000 Stellantis workers in France face partial unemployment as production halts at four plants due to supply chain issues and inventory management.
Production halt at four French plants
More than 10,000 employees and temporary workers at Stellantis are on partial or technical unemployment as the automotive company suspends production at four plants in France until the end of the month. The affected plants are in Mulhouse, Poissy, Rennes, and Sochaux.Reasons for plant closures vary
The Mulhouse plant has been stopped since late last week for two weeks, while Poissy has been interrupted since Monday. Rennes and Sochaux will halt operations this Thursday and Friday, respectively, for about ten days. The shutdowns at Rennes and Sochaux are directly linked to supply chain issues involving electric batteries.Battery supply shortage
The supply difficulties at Rennes and Sochaux are due to a shortage of electric batteries from Automotive Cells Company (ACC), a joint venture owned by Stellantis, Totalenergies, and Mercedes-Benz. ACC’s general secretary, Matthieu Hubert, said the company is operating at maximum capacity but expects its main battery plant to double production next year.Other closures focus on inventory
The production interruptions at Poissy and Mulhouse are related to financial goals and inventory management. At Poissy, where assembly will end in 2027 to shift to recycling, the focus is on reducing warehouse stock. At Mulhouse, production of the Peugeot 308 and 408 is slowing due to upcoming model updates.Financial challenges for Stellantis
Stellantis has faced significant financial strain, having spent 10 billion euros in cash over two years and accumulating unpaid bills and excess inventory in the U.S. Its stock price has dropped by half since its peak in March 2024, and the company previously used partial unemployment at six European plants by the end of 2025.
