Stellantis’ turnaround, they brought back a number of diesel models in Europe: ‘We want to generate growth in the company’

Return of write-offs in response to the market

According to the analysis of available data from authorized dealers’ websites and official company announcements, Stellantis has reintroduced or decided to retain diesel units in at least seven models of passenger cars and passenger vans. Among the returnees are some of the most popular models on the market, such as the Peugeot 308, Opel Astra and the premium compact DS 4. In addition to them, the Citroën Berlingo, Peugeot Rifter and Opel Combo Life passenger vans, vehicles that until recently were only available in electric versions, are getting a diesel option again. The company also confirmed that it will continue to produce diesel versions of premium SUV models such as the DS 7 and the Alfa Romeo Stelvio and Tonale, as well as the Giulia sedans, citing “continuous customer demand” as the reason.

This turnaround is happening at a time when sales of electric vehicles across Europe are not meeting optimistic expectations. Last week, Stellantis himself announced a huge write-down of 22.2 billion euros related to investments in the electrification strategy, admitting that he had overestimated the speed of the energy transition. The company confirmed the new strategy to Reuters.

“We have decided to keep diesel engines in our product portfolio and, in some cases, increase our range of powertrains. At Stellantis, we want to generate growth, so we are focused on customer demand.”

Competitive advantage and relaxed regulations

Although the share of diesels in the sale of new cars in Europe has fallen drastically from more than 50 percent in 2015 to only 7.7 percent in 2025, it seems that there is still a market niche for them. In the same period, fully electric cars reached a share of 19.5 percent. Stellantis’ move can also be seen as an attempt to differentiate itself from the upcoming competition from China, whose manufacturers mainly focus on electric and hybrid models, but do not have a developed offer of diesel engines. Diesels, which are generally cheaper than their electric counterparts, offer a price advantage at a time when buyers are struggling with economic uncertainties.

Changes in the regulatory framework give additional wind at the back of this strategy. The European Union has eased some of its emissions reduction targets, which could extend the life of internal combustion engines even after the originally planned ban in 2035. The situation in Europe also reflects trends in the United States, Stellantis’ largest market, where the administration of President Donald Trump has lifted strict standards on exhaust gas emissions. Although many manufacturers have completely written off diesel technology after the ‘Dieselgate’ affair, Stellantis is now betting that there are still a significant number of customers, especially those who travel long distances or need more pulling power, for whom diesel is still the most rational choice.