Stellantis, the global automotive company formed by the merger of Fiat Chrysler Automobiles (FCA) and Groupe PSA, has announced its plans to invest €95 million (approximately $111 million) in its facility in Hungary. The investment aims to transform the factory into a production hub for electric drive modules, amid the growing demand for electrified vehicles.
The Hungarian facility, located in the city of Esztergom, currently produces engines and transmissions for traditional gasoline and diesel-powered vehicles. However, with the global shift towards electric mobility, Stellantis is adapting its operations to stay ahead in the rapidly evolving automotive industry.
The investment will enable Stellantis to establish state-of-the-art manufacturing capabilities for electric drive modules, which are key components of electric and hybrid vehicles. These modules encompass electric motors, power electronics, and gearboxes, all vital elements for efficient propulsion in electric vehicles.
By upgrading the Hungarian facility to accommodate the production of electric drive modules, Stellantis aims to leverage the country's skilled workforce and strong automotive manufacturing heritage. The company believes that the Hungarian site's strategic location and experienced workforce will contribute to a seamless integration into Stellantis' global production network.
The investment aligns with Stellantis' commitment to its ambitious electrification goals. The company plans to offer electric or hybrid versions of all of its model ranges across its 14 brands by 2025. This investment in Hungary will play a crucial role in supporting this goal, as it enables Stellantis to localize the production of electric drive modules and strengthen its capacity to meet the growing demand for electrified vehicles.
Furthermore, this initiative is expected to create new job opportunities at the Hungarian facility. Stellantis is dedicated to sustainability and acknowledges the importance of investing in clean technologies, which not only benefits the environment but also stimulates economic growth and employment.
The announcement of this investment demonstrates Stellantis' continuous commitment to electrification and its efforts to remain at the forefront of the global automotive industry's transition towards sustainable mobility solutions. By investing in infrastructure and manufacturing capabilities for electric drive modules, Stellantis is laying a strong foundation for the future production of electric and hybrid vehicles.
As the demand for electric vehicles continues to surge worldwide, automotive companies are ramping up their investments in electrification. Stellantis' move to transform its Hungarian facility into an electric drive module production hub is a clear indicator of its determination to lead the way in the electric mobility revolution.
