Stellantis Hits the Brakes: Key EV Launches Delayed Up to Eight Months Amid Battery Supply Chain Crisis
Stellantis NV is delaying the launch of several key electric vehicle models by up to eight months, according to a Bloomberg report, as manufacturing issues at a critical battery supplier disrupt the automaker's electrification roadmap.
Citing people familiar with the matter, the report indicates that production shortfalls at Automotive Cells Company (ACC)—a joint venture between Stellantis, Mercedes-Benz, and TotalEnergies—are to blame. The problems have particularly affected upcoming Peugeot models, with current battery output reportedly sufficient for only about 1,000 vehicles per month, a figure far below initial targets.
In response, ACC has deployed a team of specialists from China to its flagship factory in Billy-Berclau, France, to improve production yields and reduce waste. The company is also examining cost-cutting measures at its French operations to mitigate financial pressure. The delays come amid a broad operational review led by Stellantis CEO Antonio Filosa, who has already halted projects like the electric RAM 1500 and scaled back plug-in hybrid offerings from Jeep and Chrysler in North America.
Analysts see the move as a significant setback for Europe's strategic push to build a homegrown battery ecosystem. The ACC facility, inaugurated in 2023 with backing from French President Emmanuel Macron, was hailed as a cornerstone of this industrial policy. Its struggles echo wider difficulties across the continent, following the recent collapse of Northvolt AB, a Swedish battery startup once supported by Volkswagen and BMW.
For Stellantis, the battery supply crunch adds another layer of complexity to its ongoing turnaround effort. The automaker has been working to recover market share lost under former CEO Carlos Tavares, as customers balked at price increases and raised concerns over product gaps. Just last month, the company announced price cuts on Fiat, Opel, and Peugeot models in France in a bid to regain traction.
Beyond ACC, Stellantis maintains other battery partnerships with LG Energy Solution in Canada, Samsung SDI in the US, and China's CATL in Spain. However, ACC has already paused its planned expansions into Germany and Italy, casting further doubt on the pace of Europe's EV transition.
Sarah Chen, Industry Analyst at AutoForecast Solutions: "This delay is a stark reminder of the fragility of the nascent European battery supply chain. Stellantis's multi-sourcing strategy is prudent, but when a key pillar like ACC stumbles, the ripple effects are immediate and severe for product timelines."
Marcus Thorne, Automotive Consultant: "While a setback, this is likely a tactical pause. Filosa is conducting a ruthless review of capital allocation. If certain EVs aren't profitable or the infrastructure isn't ready, delaying them to align with market reality is a tough but necessary business decision."
Elara Kostova, EV Advocate & Blogger: "It's infuriating but unsurprising. This is what happens when legacy automakers half-heartedly commit to an electric future while clinging to old partnerships and industrial models. Consumers are promised a revolution, but they get delays and excuses. Europe's 'gigafactory' dream is starting to look like a mirage."
David Park, Former Supply Chain Executive: "The move to bring in Chinese specialists highlights a painful irony. Europe wants strategic autonomy in batteries but currently lacks the advanced manufacturing expertise. This dependency, whether on raw materials or know-how, remains the Achilles' heel."
This analysis is based on a report originally published by Just Auto.