Stellantis NV (STLA.US) plans to invest €100 million to modernize its Poissy assembly plant near Paris, securing the facility's future operations. The company announced on Thursday that the plant, currently producing the Opel Mokka and DS compact SUVs, will continue manufacturing vehicles at least until the end of 8. Following that period, the facility will transition to other business activities, including automotive parts production, recycling, and 3D printing for specialized vehicle lines.

Stellantis stated it has been working closely with labor unions on this project. Xavier Chéreau, the company's Chief Human Resources and Sustainability Officer, described the initiative as "securing the industrial future of the Poissy plant in the context of rapid changes in the automotive industry." The Poissy facility currently employs approximately 1,925 workers, with about 1,580 being active production staff. The company has committed to maintaining 1,000 blue-collar positions at Poissy through 2030 without implementing any layoffs.

This announcement follows the company's November statement of a €20 million investment to renovate the plant's stamping workshop. The earlier limited scope had raised union concerns about potential complete closure due to lack of a clearer long-term vision for the facility.

CEO Antonio Filosa is conducting a comprehensive review of the group's manufacturing network as part of stabilization efforts following significant market share declines. Stellantis operates 12 facilities in France and dozens more across Europe, with some experiencing underutilization. As part of broader reforms, Filosa is seeking to partner with one or more manufacturing collaborators in Europe to help reduce costs, improve plant utilization rates, and avoid politically sensitive plant closure decisions.

The investment decision comes against the backdrop of challenging 2025 financial results. Stellantis reported full-year 2025 net revenues of €153.5 billion, representing a 2% decline from €156.88 billion in 2024. The revenue decrease was primarily attributed to unfavorable foreign exchange movements and lower net pricing in the first half of 2025, which offset modest full-year volume growth.

More significantly, the company reported a net loss of €22.33 billion for 2025, compared to a net profit of €5.52 billion in 2024. The substantial loss resulted mainly from €25.4 billion in exceptional charges related to deep strategic realignment focused on customer needs and costs associated with changing regulatory environments.

In early February, Stellantis announced major business adjustments that generated approximately €22.2 billion in charges during the second half of 2025. These charges, excluded from adjusted operating profit, include an estimated €6.5 billion in cash payments expected over the next four years. The funds are allocated toward three main areas: adapting product planning and electric vehicle supply chains to customer demands and regulatory changes, optimizing contract warranty estimation processes, and expenses related to workforce optimization in Europe.

Despite the annual challenges, the second half of 2025 marked a significant turnaround—the first full half-year under new management. During this period, net revenues reached €79.25 billion, representing 10% growth compared to the second half of 2024. Vehicle shipments excluding joint ventures increased by 11% to 2.82 million units, with all global regions showing sales growth.

North America emerged as the standout performer, with second-half 2025 sales increasing by 231,000 vehicles—a 39% surge—driven by normalized inventory levels following 2024 reduction plans and strengthening commercial momentum in the region.

Looking forward, Stellantis has outlined its recovery pathway for 2025-2027. The company anticipates mid-single-digit percentage net revenue growth in 2026, with adjusted operating margin returning to low-single-digit percentages. Industrial free cash flow is expected to show year-over-year improvement, with operational conditions progressively strengthening from the first to second half of 2026. Long-term projections indicate the potential for positive industrial free cash flow by 2027.