The problems for Stellantis continue to pile up. In addition to the already well-known challenges with the reliability of some of its gasoline and diesel models, the conglomerate now has to deal with the bankruptcy of one of its main foreign projects and the termination of another that seemed doomed from the start. According to the publication motor.es, these difficult decisions were taken in order to minimize financial losses, one of which concerns the Chinese market and the other directly affects the company's commitment to hydrogen technologies.
Reliability problems and market retreat from China
The current period is particularly difficult for Stellantis, which has been plagued for some time by reliability problems with its PureTech gasoline engines. Added to these are those caused by the crystallization of AdBlue and the camshaft chain in diesel engines. In addition to these technical difficulties, the business group, which includes giants such as FIAT, Peugeot, Citroën, Opel and Jeep, has taken drastic measures. It is now official: Stellantis is abandoning the Chinese market following the declaration of bankruptcy of GAC-FCA – the joint venture with the Asian automotive giant. This risky plan, launched by the late Sergio Marchionne, has ended its 15-year existence.
Bankruptcy of GAC-FCA and significant losses
The attempts to market FIAT and Jeep models adapted for the Asian market have come to an end. An investment of 17 billion yuan (approximately 2.041 billion euros) that was used to start two plants with an annual capacity of 300,000 units has also been lost. After a promising start, GAC-FCA's sales began to decline in 2018, finally collapsing in 2021, when only 20,100 units were sold in a market with over 25 million vehicles sold annually. Although the company was dissolved in 2022, it is only now entering liquidation after unsuccessful attempts to sell the factories and remaining equipment. Stellantis is thus giving up, suffering losses of approximately 972 million euros.
End of hydrogen ambitions
The bad news for Stellantis does not end there. The multinational company has officially confirmed that it is stopping the development of hydrogen fuel cells. This means withdrawing the investment made in Symbio - a company created in partnership with Michelin and Forvia, whose goal is to develop alternative zero-emission vehicles. Stellantis held a 33.3% stake in Symbio from 2023, with the aim of strengthening its hydrogen van portfolio. Although this segment represented nearly 80% of the project's total revenue, the pursuit of hydrogen for light commercial vehicles never seemed like a profitable option.
Hydrogen market unviable
The truth is that the hydrogen market remains a niche segment, with no prospects for medium-term economic sustainability. Stellantis is withdrawing due to "the limited availability of hydrogen refueling infrastructure, high capital requirements and the need for greater consumer purchasing incentives". The company believes that it is not viable to market hydrogen-powered light commercial vehicles in the current decade and is therefore abandoning the launch of the “Pro One“ range. Stellantis announced that it has entered into discussions with Symbio shareholders to assess the current market implications and to protect Symbio's best interests, in line with its respective obligations.
Redirecting resources and future priorities
"We need to take clear and responsible decisions to ensure our competitiveness and meet our customers' expectations with our drive towards electric and hybrid passenger cars and light commercial vehicles", added Jean-Philippe Imparato, the recently appointed CEO of Stellantis in Europe. The company also stated that this decision will not affect personnel at Stellantis' production sites and that research and development activities related to hydrogen technology will be redirected to other projects. Imparato also warned that electric car sales continue to fall short of expectations, and electric vans are even further from achieving their stated goals, even hinting at possible factory closures.