Stellantis invests $173 million to build electric Citroen SUV in France

Stellantis will invest 160 million euros ($176 million) to prepare its factory in Rennes, western France, to build the next Citroen compact SUV, which will be mostly sold as a full-electric vehicle when it is launched in 2025, the automaker said.

Stellantis will use the investment to set up a battery assembly workshop as well as one dedicated to plastic injection molding, it said in a statement, adding that the vehicle's launch will happen on the future STLA Medium platform. The molding area will be used for front and rear modules, Stellantis said.

The car, code-named CR3, will succeed the current C5 Aircross, which offers gasoline, diesel and plug-in hybrid powertrains. Stellantis in November 2021 announced it would invest 152 million euros in the factory ahead of the new model, as part of a plan to boost EV production in France.

Stellantis plans to sell only electric cars in Europe by 2030.

Asked whether the new vehicle would be available as anything other than a full-electric model, CEO Carlos Tavares told the press on Thursday: "In principle, no." The STLA Medium platform can accept internal-combustion powertrains.

The factory currently builds the Citroen C5 Aircross and the Peugeot 5008 midsize SUV. Both models entered production in 2017; the C5 Aircross is available as a plug-in hybrid, while the 5008 does not have any electrified options. 

The 5008 is due to be replaced in the next 18 months, along with the smaller 3008 compact. Its successor is expected to be built at Stellantis' factory in Sochaux, eastern France, with the 3008. 

The Rennes facility dates to 1960, when it was set up by Citroen. Peugeot models were added in the 2000s, including the 407, 508 and the 5008, which entered production in 2017. It has an annual capacity of about 100,000 vehicles, and about 2,300 employees. Last year it produced about 73,000 vehicles.

Reuters contributed to this report