Stellantis Resumes Diesel Production Amid Slowing Electrification

Facing weaker-than-expected electric vehicle (EV) sales and relaxed emissions regulations in Europe and the U.S., Stellantis—the world’s fourth-largest automaker—is revising its strategy by restarting production of at least seven diesel models in Europe. These include the Peugeot 308, DS 4, Opel Astra, and Citroën Berlingo, with deliveries scheduled to resume gradually from late 2025. The company is also reintroducing the Hemi V8 engine in the Jeep Cherokee in the U.S. market and launching a gasoline-hybrid version of the Fiat 500. These moves aim to better align with market demand and ease profit pressures. Stellantis had previously targeted full electrification in Europe by 2030, but due to tepid market response, it has already written down €22.2 billion to scale back its EV expansion plans. Currently, diesel vehicles account for just 7.7% of new car sales in Europe—far below the 19.5% share held by battery-electric vehicles. Chinese automakers have largely stayed out of this segment. Compared with EVs, diesel cars offer lower costs and, under current industry conditions, present a more practical and attractive option.