Europe’s Auto Industry Hits a Wall: Major Plant to Halt Production, Jobs at Risk

A major shift is coming to one of Europe’s largest automotive plants—and it’s not good news for workers.

The massive factory in Poissy, France, will stop building cars, marking the end of an era for a site that has been part of the industry for decades. Originally built by Ford before World War II, the plant later changed hands to Chrysler and Peugeot before becoming part of Stellantis in 2021.

Even though the facility is capable of producing up to 500,000 vehicles annually, company leadership has decided to end its role as a vehicle assembly plant. Officials confirmed that starting in 2028, no cars will roll off its production lines.

The move reflects broader challenges across Europe’s auto sector. Executives point to significant overcapacity in the region, combined with a market downturn of roughly 20% compared to 2019 levels.

Layoffs and a New Direction

While the plant won’t shut down entirely, it will undergo a major transformation. Stellantis plans to invest about $110 million to repurpose the site into a hub for body component production and vehicle recycling operations.

For employees, however, the outlook is bleak. Around 600 workers are expected to leave through voluntary buyouts and retirements.

Labor unions say the restructured facility will only require between 200 and 300 workers, putting nearly 1,900 employees—including contractor and supplier staff—at risk.

With uncertainty growing, union leaders are already warning of large-scale strikes in the coming weeks as tensions continue to rise.