Stellantis looks to be rethinking its electrification strategy in Europe, quietly bringing diesel engines back to several models just a few years after pledging an aggressive EV push, according to reports.A Reuters review of dealer websites and company statements shows the automaker has reintroduced diesel variants on at least seven passenger cars and vans since late 2025. Some models included in the diesel rejuvenation include the Peugeot 308, the DS No. 4 hatchback, and multiple light commercial vehicles sold under various Stellantis brands.“We have decided to keep diesel engines in our product portfolio and—in some cases—to increase our powertrain offer,” Stellantis told Reuters. “At Stellantis we want to generate growth, that’s why we are focused on customer demand.”The move marks a notable shift for a company that had positioned itself as one of the industry’s most eager champions of battery-electric vehicles, particularly in the wake of its 2021 merger. (Stellantis was formed when PSA Group and Fiat Chrysler Automobiles joined forces). Like so many automakers across Europe and beyond, Stellantis had been preparing for stricter EU emissions rules and a 2035 ban on new internal-combustion sales.gettyimages-2189178797But EV demand has been uneven across Europe, most markedly outside major urban centers. At the same time, Chinese manufacturers have expanded their presence with aggressively priced electric models. Reintroducing diesel, a long favored technology in Europe for its fuel economy, gives Stellantis a hedge while it navigates pricing pressure and slower-than-expected EV uptake.The strategy also mirrors wider shifts in the US, Stellantis’ largest market, where regulatory signals around emissions and electrification have recently softened.
