Stellantis' EV Shift Stalls as Europe Revives Production of 7 Diesel Models

Stellantis, the world’s fourth-largest automaker, has decided to restart production of at least seven diesel models in Europe—including the Peugeot 308, DS 4, Opel Astra, and Citroën Berlingo—due to slower-than-expected progress in its electrification efforts. This move marks a significant retreat from its previously aggressive electric vehicle (EV) strategy. The company had originally aimed for full electrification in Europe by 2030, but weak EV sales have forced it to record a €22.2 billion asset impairment charge for 2025 and announce a suspension of dividend payments in 2026. Facing high EV development costs, profit pressures, and intense competition from Chinese automakers, Stellantis is now opting to retain and even expand its diesel offerings to stabilize its market share. Currently, diesel vehicles account for just 7.7% of the European market, while battery-electric vehicles hold a 19.5% share.