Automotive Cells confirmed it will halt plans to build battery gigafactories in Germany and Italy and said it is holding talks with unions at its French venture as key backer Stellantis downsizes its electric-vehicle plans.
ACC, the battery joint venture between Stellantis, Mercedes-Benz and TotalEnergies, said it doesn’t expect conditions to be met to restart the German and Italian projects, according to an emailed statement.
It had placed them on standby in May 2024.
While the company said it will maintain its industrial capacity in France, it is in discussions with French unions on possible partial unemployment measures, as it considers “all sorts of options to try and shore up its finances,” ACC General Secretary Matthieu Hubert said in a phone interview on Saturday.
Stellantis said it “takes note of ACC’s decision to enter discussions with social partners with a view to halting the gigafactory projects in Germany and Italy,” according to an emailed statement from a spokesperson.
Stellantis is “closely monitoring the situation.”
A media representative for the automaker declined to comment on ACC’s French talks with labour unions.
The automaker said it has taken measures to protect employees in a challenging European automotive market, pointing to plans for an e-DCT gearbox production line at Termoli in southern Italy by the end of 2026 and its investments in Euro 7-compliant GSE engines to ensure their continued use beyond 2030.
Stellantis added that current ACC employees will be offered employment within the company.
The decision underscores Stellantis’ pullback from aggressive EV investments.
The carmaker on Friday announced €22.2 billion (around R417 billion) in writedowns tied largely to unprofitable EV projects, and reported earnings far below expectations.
It warned it expects to post a second-half deficit of as much as €1.5 billion (around R28 billion).
Its shares plunged as much as 25% in Milan, extending a market-value rout of nearly €70 billion (around R1.4 trillion) since early 2024 as investors question management’s ability to rebuild trust.
Stellantis is selling its 49% stake in the Canadian joint venture to partner LG Energy Solution for just $100 (around R1,600), wiping out virtually all of the $980 million (around R16 billion) the carmaker had invested in the operation.
Chief Executive Officer Antonio Filosa’s electric pullback means Stellantis will need fewer battery factories in the US and Europe than initially expected, Bloomberg reported earlier this week.
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