Stellantis to Invest €103 Million in Hungary Facility to Boost Electric Drive Module Production
Stellantis, the multinational automotive company, announced on Monday a significant investment of €103 million ($111.02 million) in its Szentgotthard facility in Hungary. This investment aims to ramp up the production capacity of electric drive modules (EDMs) and further enhance the automaker’s electric-vehicle portfolio.
This marks Stellantis’ third investment in an EDM manufacturing facility, following Tremery-Metz in France and Kokomo in the United States. By expanding its manufacturing capabilities in Hungary, Stellantis aims to bring itself closer to achieving its electrification goals of having 100% sales from battery electric vehicles (EVs) in Europe by 2030.
With a commitment of $50 billion in electrification efforts over the next decade, Stellantis is steadfast in its pursuit of sustainable mobility. The expansion at the Szentgotthard plant, which currently focuses on producing internal combustion engines, will now include the machining of key components and final assembly and testing of 3-in-1 EDMs. Production of EDMs at the plant is anticipated to commence in late 2026.
EDMs are integral units comprising an electric motor, gearbox, and power electronics. These components play a crucial role in both purely electric and hybrid powertrains by delivering high torque and maintaining system efficiency.
Stellantis’ investment in its Hungary facility underscores the company’s dedication to the electrification of its vehicle lineup. By bolstering EDM production, Stellantis takes another step towards a greener future and meeting the rising demand for electric vehicles.
Analyst comment
Positive news: Stellantis’ €103 million investment in its Hungary facility to boost electric drive module production is a significant step towards achieving its electrification goals. The expansion will enhance its electric-vehicle portfolio and contribute to a greener future. The market is expected to respond positively, reflecting increasing demand for electric vehicles and Stellantis’ commitment to sustainable mobility.
