Small electric cars from Stellantis likely to be built in Spain

Spain’s Perte plan, a subsidy scheme to transform the country into an industrial hub for electric mobility, is bearing fruit. After Volkswagen, the Stellantis group is tapping into favorable incentives. Models built on the STLA Small architecture will be produced in Spain.

Stellantis has three plants in Spain and will now convert those in Figueruelas, Zaragoza, and Vigo to produce small electric cars. The decision has been made official publicly by Stellantis yet, but several media outlets, like El País, confirm the story, which was already rumored months ago.

Wrestling match

Spain has been in a wrestling match with France for the allocation of the production infrastructure for small battery-powered cars. The French government is a minority owner of Stellantis through BpiFrance and has used its influence to win over management.

But the Perte incentive, which also convinced Volkswagen to set up a complete value chain for electric car production in the country, seemed a trump card for Spain.

Allegedly, Stellantis brings 1 billion euros to the table for the conversion of both plants, of which it targets to recuperate roughly ten percent if its plan is greenlighted. As of Friday, they should be entered for official review as part of the scheme’s second phase.

Job security

If all goes according to plan, the first models could roll off the assembly lines as soon as 2025. The factory in Madrid, the smallest one from the group in the country, which makes the Citroën C4 – including the electric version – isn’t scheduled for the STLA Small platform. It takes no part in the mentioned conversion strategy.

What concerns small cars, Stellantis currently produces its ‘ludospace’ models and the Opel Corsa-e and e-208 in Spain. The latter, however, might be moved, as the French government demanded to assemble it in its home country in the act of ‘patriotism,’ but no decision has been taken yet.

Because of the higher output, small cars are a sound guarantee of job security. However, the CEO of Stellantis has repeatedly stated that French production is hardly profitable.

Third generation

The STLA Small architecture will replace the current e-CMP underpinnings and cover BEVs in the A and B categories, promising ranges up to 500 kilometers. With third-generation technology, it aims to be industry-leading in its class.

As approval of subsidies and loan schemes is premature, Stellantis isn’t expected to communicate on the news before November. The company is responsible for almost 40% of the nation’s car production.