Stellantis is set to invest more than €1bn ($1.15bn) in its Hordain plant in northern France to build a new van, Bloomberg reported, citing unnamed sources.

The funding will go towards upgrading the existing Hordain facility, alongside research and development work carried out elsewhere in France to support the new vehicle's production.

According to the sources, Stellantis is also expected to bring parts of the manufacturing process back in-house from external suppliers, leaning on greater automation to boost efficiency at the site.

The investment is part of a broader restructuring of the carmaker's European manufacturing base under chief executive Antonio Filosa, who has now led the company for more than a year.

Filosa is reshaping Stellantis's operations across the continent while gearing up to roll out dozens of new models.

The strategy is designed to tackle overcapacity and cut spending on parts of the business that are losing money.

Stellantis is aiming for €6bn in annual savings by 2028 and is working on partnerships with China's Leapmotor and Dongfeng Motor to make better use of underutilised plants in Rennes, France, and in Spain.

The Hordain commitment is likely to ease concerns among labour unions over the plant's long-term future.

Earlier in the year, Filosa unveiled a separate investment of more than €1bn to back production of three new electric and hybrid Peugeot models at the Mulhouse plant in eastern France, with output due to start in 2029.

Filosa is working to streamline Stellantis amid a difficult regulatory backdrop in the EU, particularly around vans.

The group's Pro One commercial vehicle division intends to roll out 11 new or updated models by 2030.

Last month, Filosa committed to keeping all 12 of the company's French manufacturing sites operational.

Stellantis reported Q2 2026 financial results showing net revenues up 13% year-on-year to €43.5bn, led by a 32% rise in North America and a 6% increase in South America.

Europe remained flat, while the Middle East & Africa and Asia Pacific regions saw slight declines.