STELLANTIS has ditched a new fueling program after the head of the company confessed it wasn’t working out.
The major carmaker canceled the launch of brand new vehicles that were set to start this summer.
Stellantis’ hydrogen powered vans will no longer be made[/caption]
Stellantis COO Jean-Philippe Imparato at the Brussels Motor Show in Brussels, Belgium, on January 13, 2023[/caption]
Imparato speaking about Stellantis’ strategy for developing hydrogen-powered vehicles at Stellantis Commercial Vehicles Ambition Day in October 2023[/caption]
Stellantis is discontinuing its hydrogen fuel cell technology program, the company announced on Wednesday.
The group said it was no longer launching the hydrogen-powered vehicles that had been planned for production this year.
Stellantis — which formed from the 2021 merger between Fiat Chrysler Automobiles and PSA Group, the owners of Peugeot and Citroën — said hydrogen isn’t a practical fuel for cars and vans.
The world’s fifth-largest car company said hydrogen-refueling infrastructure is too scarce, production was too expensive, and there weren’t enough incentives to attract customers.
“The hydrogen market remains a niche segment,” Jean-Philippe Imparato, chief operating officer for Europe, said.
The COO admitted that there were “no prospects of midterm economic sustainability.”
“We must make clear and responsible choices to ensure our competitiveness and meet the expectations of our customers with our electric and hybrid passenger and light commercial vehicles offensive,” he continued.
Stellantis was expected to create a range of hydrogen-powered Pro One vans by the end of the year.
NO MORE PARTNERSHIP
Car parts suppliers Michelin and Forvia said they were surprised by Stellantis’ decision to abandon the program, according to Reuters.
Stellantis bought a 33% stake in Symbio, a hydrogen joint venture between the three, in 2023.
Michelin and Forvia said the move would have “serious operational and financial consequences” for the partnership.
Forvia said Stellantis is currently Symbio’s main customer and accounts for almost 80% of their business.
“Michelin’s primary concern lies with the impact this will have on Symbio’s employees, both in France and abroad,” Michelin said in a statement.
Production for the new vehicles was due to begin soon in France and Poland.
Stellantis’ full statement
Stellantis announced on Wednesday that it was discontinuing its hydrogen fuel cell technology development program. Below is the carmaker’s full statement:
Stellantis today announced its decision to discontinue its hydrogen fuel cell technology development program. Due to limited availability of hydrogen refueling infrastructure, high capital requirements, and the need for stronger consumer purchasing incentives, the Company does not anticipate the adoption of hydrogen-powered light commercial vehicles before the end of the decade.
As a result, Stellantis will no longer launch its new range of hydrogen-powered Pro One vehicles this year. Serial production was scheduled to start this summer in Hordain, France (medium-sized vans) and Gliwice, Poland (large vans).
“In a context where the Company is mobilizing to respond to demanding CO2 regulations in Europe, Stellantis has decided to discontinue its hydrogen fuel cell technology development program,” explains Jean-Philippe Imparato, Chief Operating Officer for Enlarged Europe. “The hydrogen market remains a niche segment, with no prospects of mid-term economic sustainability. We must make clear and responsible choices to ensure our competitiveness and meet the expectations of our customers with our electric and hybrid passenger and light commercial vehicles offensive.”
This decision will not impact staffing at Stellantis’ production sites. R&D activities related to hydrogen technology will be redirected to other projects.
The current state of the hydrogen segment also presents financial challenges for various stakeholders. In this context, Stellantis has initiated discussions with the shareholders of Symbio to evaluate the current market consequences and to preserve the best interests of Symbio, in line with their respective obligations.
Source: Stellantis
However, the carmaker said employees working at the production sites won’t be affected.
The company’s resources that were being funneled into research and development for hydrogen technology will be directed to other projects.
TOUGH MARKET
Hydrogen vehicles have struggled to find a place in the auto market as electric vehicles become more popular.
The models drive like EVs, but they skip traditional batteries and convert hydrogen into electricity on the go.
Last year, BMW announced its plan to develop a new hydrogen fuel cell technology by 2028.
The brand already has a fleet of hydrogen iX5 vehicles that aren’t for sale yet.
Toyota introduced the Mirai, a hydrogen alternative, in the UK back in 2015.
Stellantis, which formed from the 2021 merger between Fiat Chrysler Automobiles and PSA Group (stock image)[/caption]
