French diesel engine factory Stellantis to boost its electric motor

TREMERY, June 29 (Reuters) – World’s No.4 carmaker Stellantis (STLA.MI) said on Wednesday it would ramp up production of electric motors at its plant in Tremery, France, long the largest diesel engine plant in the world. world, to represent 50% of the installation’s capacity by 2024.

In 2021, diesel represented 67% of the production of this plant in northeastern France. By 2024, diesel engines will represent only 30% of installed capacity. Gasoline engines, also used for hybrid electric vehicles, will account for 20% of capacity.

Through a joint venture with Japanese electric motor maker Nidec (6594.T), Stellantis expects a production capacity of 200,000 motors at Tremery by the end of 2021 and more than one million by 2024.

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“It is quite symbolic to see this as our lead factory for the start of production and transformation of electric motors that we are facing,” Stellantis manufacturing director Arnaud Deboeuf told reporters.

Over the past decade, diesel has accounted for more than 50% of new car sales in Europe, but the technology has fallen out of favor as the European Union has focused on zero-emission cars.

EU countries agreed on proposed climate change laws on Wednesday, backing an effective ban on new fossil fuel car sales from 2035. read more

Going electric poses significant employment and training challenges for automakers. An electric motor has one-third the parts of an internal combustion engine, requiring fewer parts and labor.

The Tremery plant opened in 1979 and has already cut jobs. The plant currently employs around 2,400 people and a nearby gearbox plant in Metz has 1,100 workers, up from 3,000 and 1,400 respectively in 2019.

By 2024, Metz will dedicate 62% of its capacity to electrified dual-clutch gearboxes for plug-in hybrids.

Stellantis has invested more than 37 million euros ($38.73 million) in Tremery and Metz for electric motors and new gasoline engines.

($1 = 0.9553 euros)

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Reporting by Gilles Guillaume, Writing by Nick Carey, Editing by Alexandra Hudson and Nick Zieminski

Our standards: The Thomson Reuters Trust Principles.

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