Stellantis revives diesel: an unexpected bet to counter the electric crisis?
Just when diesel engines were thought to be condemned by new standards and the rise of electric vehicles, they still have a few words to say. Stellantis, the automotive giant behind Peugeot, Citroën, Opel, and Jeep, has decided to extend the production of its diesel engines until 2030. A surprising choice at a time when most manufacturers are trying to move away from internal combustion powertrains, but one that could well meet a still strong demand in certain markets.
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There is still demand for diesel
For several years, diesel vehicle sales have been plummeting, weighed down by increasingly strict regulations and an image tarnished by pollution scandals. Yet, despite this trend, 1.3 million diesel vehicles still found buyers in Europe in 2024, barely less than the 1.4 million fully electric cars. Stellantis has clearly understood that, despite the erosion of its market, some drivers remain attached to diesel—especially professionals, high-mileage drivers, and those who need long range without relying on an insufficient charging network. With more and more brands abandoning diesel powertrains, consumers are left with fewer choices. By betting once again on diesel, Stellantis could capture a customer base that lacks alternatives and boost its sales.
A way to compensate for the slow pace of electrification
The shift to electric is more complicated than expected for manufacturers. The widespread adoption of electric cars is lagging, partly due to still high prices, uneven charging infrastructure, and a slowdown in demand. Stellantis, which initially planned to reach 50% electric sales in 2024, has had to revise its forecasts down to only 20%. Faced with this reality, the manufacturer prefers to rebalance its lineup rather than rely solely on models that struggle to take off. This return to diesel allows it to limit its losses, offer a more diversified lineup, and meet the real market expectations rather than overly optimistic projections for electric vehicles.
Updated diesel engines to meet new standards
Reviving diesel is fine, but not just any way. The upcoming Euro 7 standards in Europe, which will come into effect soon, require manufacturers to further reduce pollutant emissions. Stellantis therefore plans to adapt its engines to these new environmental requirements, notably by reworking its emission control systems. The Metz-Trémery plant in France will remain the heart of this production with the manufacture of the 1.5 BlueHDi and the 2.2-liter diesel engines already used in several group models.
But Stellantis doesn’t stop there: a new, more compact diesel engine could also be developed, offering a more efficient alternative for passenger cars. Not to mention the Chinese innovations that have been boosting diesel engine efficiency year after year. While some may see this return as a risky gamble, it could very well be a wise strategic decision. By maintaining a competitive diesel offering, Stellantis could benefit from a market where competition is gradually fading, while ensuring a smoother transition to electric vehicles.
This article explores Stellantis’s surprising decision to extend diesel engine production, the strategic reasons behind this choice, and the group’s efforts to adapt these powertrains to future environmental standards.
