Stellantis Group plans to bring back the diesel versions of at least seven of its brands’ models across Europe, after overestimating EV demand in the region.
Last year, Stellantis Group sold a total of 2,421,571 vehicles across its European markets — a 6.0% decrease from 2024.
The automaker includes a total of 14 car brands, such as Opel, Peugeot, Citroën, and Fiat, among others.
As first reported by Reuters on Friday, internal combustion engine (ICE) models to be launched in Europe include the Opel Astra, the Opel Combo van, the Peugeot Rifter seven-seat SUV, and the Citroën Berlingo passenger van.
When contacted by Reuters, Stellantis Group confirmed that the company will also continue manufacturing diesel versions of the premium DS 7 SUV, and the Alfa Romeo‘s Tonale and Stelvio SUVs and Giulia sedan “in response to sustained customer demand.”
“We have decided to keep diesel engines in our product portfolio and – in some cases – to increase our powertrain offer. […] At Stellantis, we want to generate growth, that’s why we are focused on customer demand,” the firm told Reuters.
The new perspective differed drastically from the group’s previous remarks that battery electric vehicles (BEV) should make up all of its European sales and 50% of US sales by 2030.
This shift led the Stellantis Group to reintroduce diesel versions in Europe of the Peugeot 308 family car, the premium DS 4 hatchback, among others, in late 2025.
The same retreat is occurring in the United States as well, due to President Trump’s high tariffs on imported EVs and the termination of the federal EV tax credit for new vehicles of this powertrain last September.
Therefore, the company applied the same strategy in the country as in Europe, bringing back popular ICE models, such as the Jeep Cherokee crossover SUV, and introducing the petrol hybrid version — and a BEV one — of the Fiat 500 A-segment city car, “as part of its strategy to regain US market share,” the report noted.
European Sales
Stellantis Group‘s sales in the Old Continent fell by 6.0% in 2025.
Europe’s second-largest carmaker reached a market share of 16%, including both passenger cars and light commercial vehicles, in the region.
Despite the “ongoing market turbulence and clear demand weakness,” Stellantis “maintained its second position among the major players in the automotive business” in the Old Continent, as emphasized by the group’s Chief Operating Officer for Enlarged Europe & European Brands Emanuele Cappellano.
The multinational company led sales in France, Italy, and Portugal, and achieved the second position in Germany, Spain, the UK, Austria, Belgium, and Luxembourg.
Powered by Citroën‘s C3 hatchback, C3 Aircross and C5 Aircross SUVs, the Fiat Grande Panda, among other models, the automaker maintained its top place in the hybrid segment in Europe, with a 15% share.
The hybrid segment includes hybrid electric (HEV), mild hybrid electric (MHEV) and plug-in hybrid electric vehicles (PHEVs).
$26 Billion Hit
Earlier this month, Stellantis Group announced a €22.2 billion charge — equivalent to $26.4 billion — to restructure its business.
The automaker also suspended this year’s dividend after posting a 2025 net loss.
Its shares reached their lowest level since the group’s 2021 creation through the merger of the Fiat Chrysler and PSA Group, according to Reuters.
In addressing the charges, Stellantis‘ CEO Antonio Filosa said that the company overestimated EV demand.
“The charges announced today [February 6] largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means, and desires,” the chief executive stated.
“They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new Team,” he added.
Stellantis Group is set to release full-year 2025 financial results on February 26, while it plans to present its new strategic plan at an investor day on May 21.
