Stellantis is reversing course on its electric vehicle strategy in Europe, quietly reintroducing diesel versions of at least seven car and passenger van models. The move, beginning in late 2025, signals a significant shift for the automotive giant as it responds to slowing EV sales and a changing regulatory landscape.
The reintroduction of diesel engines will encompass models from Peugeot, Citroen, and Opel, including passenger versions of commercial vehicles like the Peugeot Rifter and Citroën Berlingo. Diesel options will be available for the Opel Astra, Peugeot 308, and DS 4 hatchbacks, according to a review of dealer websites and company statements.
This strategic pivot comes as the anticipated surge in electric vehicle adoption has failed to materialize across Europe. EV sales have lagged expectations, and recent adjustments to emissions targets are allowing combustion engines – including diesel – to remain viable for a longer period. Stellantis, the world’s number four automaker, appears to be positioning itself to capitalize on this evolving market dynamic.
“We have decided to keep diesel engines in our product portfolio and – in some cases – to increase our powertrain offer,” Stellantis told Reuters, emphasizing a focus on meeting customer demand. The company will also continue producing diesel versions of the Alfa Romeo Tonale and Stelvio, as well as the Alfa Romeo Giulia sedan.
The resurgence of diesel is a notable development considering its decline in popularity following the “Dieselgate” emissions scandal in 2015. While diesel vehicles once accounted for over 50% of new car sales in Europe, their market share had fallen to just 7.7% by 2025, compared to 19.5% for electrified models, according to data from the European car lobby group ACEA. However, Stellantis’s decision suggests a recognition that diesel still holds appeal for certain segments of the European market.
The shift isn’t limited to Europe. In the United States, Stellantis is also scaling back its EV ambitions, influenced by the policies of the Trump administration. The administration’s recent repeal of a finding that greenhouse gas emissions endanger human health effectively eliminates car and truck tailpipe emissions standards, creating a more favorable environment for internal combustion engines.
The decision to revive diesel engines also provides Stellantis with a competitive advantage against Chinese automotive rivals, who are primarily focused on electric and plug-in hybrid vehicles. By offering a broader range of powertrain options, Stellantis aims to cater to a wider spectrum of consumer preferences and navigate the uncertainties of the evolving automotive landscape.
The move represents a significant reversal for Stellantis, which, like many automakers, had been heavily investing in electric vehicle technology and phasing out diesel options. In 2025, the company began to quietly reintroduce diesel versions, starting with select models and gradually expanding the offering. This change in strategy highlights the challenges automakers face in predicting future demand and adapting to shifting market conditions.
The financial implications of this shift are still unfolding. Stellantis recently reported billions of dollars in charges to write down EV investments that didn’t pay off, alongside GM, Ford, and Honda. The company’s decision to prioritize diesel engines could help mitigate further losses in the short term, but it also raises questions about the long-term viability of its EV strategy.
The reintroduction of diesel engines is not without its critics. Environmental groups have expressed concerns about the impact of diesel emissions on air quality and climate change. However, Stellantis maintains that its diesel engines meet current emissions standards and that the company is committed to reducing its overall carbon footprint.
The company’s decision to offer both diesel and electric options reflects a pragmatic approach to the energy transition. By catering to diverse consumer needs and adapting to changing regulatory conditions, Stellantis aims to maintain its market position and navigate the complexities of the automotive industry in the years to come. The move underscores the fact that the path to a fully electric future is likely to be more gradual and nuanced than initially anticipated.
