Stellantis Accelerates Electrification Agenda with €103 Million Investment in Hungary

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Stellantis N.V. has unveiled plans to boost production of electric drive modules (EDMs) with a new facility in Szentgotthard, Hungary, set to commence operations by late 2026. This €103 million investment, aided by grants and contributions from the Hungarian government, underscores Stellantis’ dedication to revamping its infrastructure for an electrified future.

The move marks a significant step in the company’s strategy to enhance its electrification portfolio. Stellantis has already utilized facilities in Tremery-Metz, France, and Kokomo, Indiana, USA, for EDM production. Additionally, the Mirafiori complex in Italy is ramping up production of next-generation electrified dual-clutch transmissions (eDCTs) in 2024, catering to Stellantis’ hybrid and plug-in hybrid vehicles.

Arnaud Deboeuf, Stellantis’s Chief Manufacturing Officer, emphasized the significance of this expansion, stating, “Bringing production of electric drive modules to Szentgotthard to support our transformation towards electrification is another important part of our goal to provide customers with clean, safe, and affordable mobility. The people at this plant can be proud that their work will be an integral part of our electrified future and a core element of delivering customer-focused, class-leading electrified vehicles from our iconic brands.”

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Minister Péter Szijjártó of Hungary hailed the investment, noting its role in facilitating the automotive industry’s transition to electrification. “This investment means that Hungary will have a stronger role in helping the automotive industry make its electrification transition,” Szijjártó remarked. “Now, traditional propulsion will be manufactured next to electric drive module production. With this investment, we are protecting jobs and ensuring the future of the Szentgotthárd plant.”

The Szentgotthard-produced EDMs will find their way into vehicles constructed on the forthcoming BEV-centric STLA platform. The production will take place within existing buildings at the plant, with new tasks including machining of key components and final assembly and testing of 3-in-1 EDMs, consolidating the electric motor, reduction gearset, and inverter into a single unit.

Presently, the Szentgotthard plant is responsible for crafting 1.2-liter turbocharged three-cylinder and 1.6-liter four-cylinder internal combustion engines for various Stellantis brand vehicles. To adapt to the demands of EDM production, Stellantis employees will undergo upskilling training.

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Stellantis is dedicated to substantial investments in electrification, committing over €50 billion over the next decade to meet its Dare Forward 2030 targets. These goals include achieving a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and a 50% BEV sales mix in the United States by 2030. The company is also on track to become a carbon net zero corporation by 2038, encompassing all scopes, with plans for single-digit percentage compensation of remaining emissions.

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