After France, Spain is probably the European country where the former PSA, now part of Stellantis, has the most production plants. Peugeot and Citroën have established a veritable industrial hub on the Iberian peninsula, with three plants in Spain and one in Portugal, which is still in operation.

The oldest is located in Villaverde, a district in the south of Madrid, and was the birthplace of several popular models, in particular commercial vehicles. Today, it is a green factory that uses solar energy and also produces electric crossovers.

This is where they transform fuels into diesels

The Villaverde complex, to the south of the Spanish capital, was built in 1951 by Barreiros Diesel, which started out making diesel engines by converting petrol units, but later moved into the production of passenger cars such as the Simca 1000 and 1200.

In 1967, it was bought by Chrysler Europe, which sold it to PSA a decade later with the transfer of the Talbot brand, whose cars continued to be built at the plant for a few years until the brand was discontinued. In 1996, it changed its name to Peugeot Espana.

L'usine Stellantis à Villaverde, Madrid

Assembly line for mechanical sub-assemblies at Villaverde, Madrid

This is PSA's smallest plant in Spain, although it employs 1,200 people and produces around 140,000 units a year. It is mainly a plant specialising in the production of limited series or niche models. Indeed, in the 2000s, PSA concentrated production of strategic models such as the Peugeot 207 here; it is the only production plant in the world that produces the entire range, including the SW and CC.

It also supports production of the Citroën C3, which is built on the same platform, and assumes full responsibility for production of the Pluriel convertible variant.

L'usine Stellantis à Villaverde, Madrid

Production of the Citroën C4 Cactus

Over the next decade, Villaverde became a Citroën factory: it was here that the company launched production of the C4 Cactus, which represented something of an attempt to approach the low-cost market, even if it wasn't explicit.

In 2019, it welcomes the new generation C4, transformed into a crossover, of which it also produces the electric e-C4 variant. They will be joined in 2022 by the C4 X, a slightly larger derivative model, also available in an electric version.

L'usine Stellantis à Villaverde, Madrid

The new Citroën C4 and e-C4 produced in Madrid

The new solar park

In early 2022, the Madrid plant inaugurated a 15,000-module photovoltaic power plant. This initiative is the result of a partnership between Stellantis and the energy company Endesa. It is the largest self-generating photovoltaic installation in the Spanish capital. It is located on the roof of the main production building and covers an area of 30,000 square metres, the equivalent of four football pitches.

With an installed capacity of 6.7 megawatts, it meets around 30% of the centre's energy needs and is expected to generate more than 8,000 MWh/year of clean energy, while reducing CO2 emissions by more than 2,546 tonnes- roughly as much as is absorbed by all the trees in Madrid's famous Retiro Park.

The Villaverde dossier

Inauguration 1958
Owner Stellantis
Location Villaverde, Madrid, Spain
Total surface area n.a.
Employees 1,200
Production capacity Around 140,000 vehicles a year
Other activities -
Models currently produced Citroen C4, e-C4, C4 X ed e-C4 X
Historic models produced Simca 100 e 1200, Talbot Horizon, Solara, Peugeot 205, 306, 309, 207, 207 SW e 207 CC, Citroen LNA, C3, C3 Pluriel, Xsara, C4 Cactus
Upcoming models -

Gallery: The Stellantis factory in Villaverde, Madrid