Stellantis, the multinational automotive manufacturer, is reversing course on diesel engine production in Europe, citing sustained customer demand as the primary driver. The move comes after a period of significant powertrain adjustments for the company, including the reintroduction of the Hemi V8 in the Ram 1500 and the cancellation of plug-in hybrids and an all-electric Ram truck.
Diesel’s Unexpected Revival
Despite a decade-long decline in diesel sales following Volkswagen’s “Dieselgate” scandal, Stellantis is quietly reintroducing diesel options into at least seven European models. In 2025, diesel accounted for only 7.7% of new car sales across the continent. However, the automaker reports that demand persists in certain segments, leading to the continued production of diesel versions for vehicles like the Alfa Romeo Stelvio, DS 7, and select Peugeot, Opel, and Citroën models.
Why Now? The EV Market Challenge
The decision to reinstate diesel engines is not merely a response to consumer preference but also a strategic move in a rapidly evolving automotive landscape. Electric vehicle (EV) adoption in Europe has not met initial expectations, creating pressure on automakers to adapt.
As Chinese manufacturers aggressively gain market share in the EV sector, European automakers are seeking ways to differentiate their offerings. Diesel engines, while controversial, remain a viable option for consumers in regions where EV infrastructure is lacking or affordability is a concern.
A Pragmatic Approach to Powertrain Diversification
Stellantis explicitly stated its reasoning: “We have decided to keep diesel engines in our product portfolio—and in some cases—to increase our powertrain offering.” The company is effectively acknowledging that a one-size-fits-all approach to powertrain electrification isn’t working, and a more diversified strategy is necessary to cater to a wider range of customer needs.
The reinstatement of diesel engines highlights a pragmatic shift in the automotive industry, where market realities often outweigh long-term ideological goals. While the future of transportation is undoubtedly electric, the transition is proving slower and more complex than initially anticipated, forcing automakers to re-evaluate their strategies in the present.
This move suggests that internal combustion engines—particularly diesel—will remain relevant in Europe for the foreseeable future, even as the industry pushes toward electrification.
