Peugeot's Bid to Embed Sustainability into Manufacturing

Peugeot has long placed innovation and sustainability at the heart of its procurement strategy.

Social and environmental responsibility runs through the business, with ethical supplier partnerships that give customers confidence in every purchase.

By focusing on efficiency and service from the outset, Peugeot drives these outcomes through responsible sourcing.

Ethical procurement in manufacturing

Peugeot integrates social and environmental awareness into every stage of production, from raw material sourcing to vehicle assembly. This ensures every car reflects a balance between efficiency, ethics and performance.

The Peugeot brand begins this journey through responsible purchasing. Ethical supply chain management supports its mission to deliver products that meet both customer and environmental expectations.

The company’s manufacturing story began in 1810, when the Peugeot family started a steel foundry producing saws and hand tools. Steel remains a defining element of its identity, symbolising resilience and precision.

By 1889, Peugeot presented its first automotive model – a steam-powered three-wheeler – and over time built a reputation for creating innovative, award-winning vehicles.

Now part of Stellantis, Peugeot supplies vehicles to more than 140 countries and boasts the biggest electric vehicle (EV) line-up of any European mainstream manufacturer.

From compact urban cars to commercial models, the company maintains three guiding principles:

• Leading the charge
• Sustainability for now and the next generation
• Electrifying the future

Technology and transformation

Peugeot’s manufacturing evolution is deeply connected to technological progress.

It adopts advanced production systems to improve energy efficiency, material use and automation while maintaining social and environmental responsibilities.

"We're at a technological and societal turning point in our relationship with the automobile, and the Peugeot brand, through its creativity and innovation, is for me a major player in this evolution," says Alain Favey, CEO at Peugeot.

The brand’s E-Lion project forms the backbone of its electrification and manufacturing strategy. Built on five pillars – electric, efficiency, experience, education and environment – it provides a framework for transforming both production and procurement operations.

"The Peugeot E-Lion project is paving our way to becoming Carbon Net Zero, focusing on meeting the needs of our customers and helping them embrace the electric era," continues Alain.

This approach aligns with manufacturing efficiency, as the company aims to produce vehicles with optimised energy use and minimal waste.

Peugeot’s all-electric models now reach up to 435 miles WLTP range and allow fast recharging. Hybrid vehicles operate in CO2-free mode for half of driving time, lowering fuel use by around 15%.

Such achievements depend on efficient decision-making across the supply chain. Through smart sourcing and close supplier collaboration, Peugeot maintains performance quality while reducing production costs and environmental impact.

Localised production

As part of Stellantis, Peugeot operates within a global network of suppliers, factories and logistics centres. Managing ethical standards across multi-tiered supply chains requires rigorous monitoring and accountability.

The company addresses this through regular due diligence and transparency reviews.

Every year, Stellantis reassesses supplier performance to ensure compliance with Corporate Social Responsibility (CSR) standards and market regulations. This continuous review process guarantees that each component used in Peugeot vehicles meets ethical, environmental and quality expectations.

Localisation also plays a major role in Peugeot’s responsible manufacturing plan. The company positions suppliers near production facilities to improve supply chain resilience, lower emissions and reduce logistics costs.

Shorter transport routes minimise CO2 output and limit vulnerability to global disruptions. This strategy also strengthens local economies and fosters sustainable community development around its factories.

Localised procurement limits exposure to exchange rate volatility, providing more stable production costs and predictable sales margins, making sustainability both an ethical and economic decision.

Procurement leadership

Monica Genovese, Head of Purchasing at Stellantis, leads procurement for all 14 of the group’s brands, including Peugeot.

She has been part of the organisation for three decades, having started her career at Fiat in 1995 before progressing through senior purchasing and manufacturing roles at Fiat Chrysler Automobiles and then Stellantis.

Her leadership reinforces Peugeot’s mission to link manufacturing excellence with ethical sourcing.

Ultimately, Peugeot's procurement philosophy reflects a belief that sustainability begins not at the showroom but on the factory floor.

By combining responsible purchasing, localised supply chains and advanced technology, the business continues to manufacture vehicles that meet the expectations of a modern, sustainability-conscious market while maintaining the durability and precision that define its heritage.