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Stellantis scraps hydrogen fuel cell tech and abandons new car plans
Story by Jane Denton2 min read
Carmaker Stellantis has scrapped its hydrogen fuel cell development programme as well as launch plans for new vehicles using the technology.
The group announced on Wednesday it would no longer launch a range of hydrogen-powered vehicles this year.
Stellantis said 'the hydrogen market is showing no development prospect at mid-term'.
The group said the decision was due to the limited availability of hydrogen refuelling infrastructure, high capital requirements and the need for stronger purchase incentives for customers.
Jean-Philippe Imparato, chief operating officer for enlarged Europe, added: 'The hydrogen market remains a niche segment, with no prospects of mid-term economic sustainability.'
Imparato said the company had to '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'.
The group does not anticipate the adoption of hydrogen cell vans before the end of the decade.
Serial production of Stellantis' new Pro One range was scheduled to start in the summer in Hordain, in France, and Gliwice, in Poland.
The decision will not impact staffing at Stellantis production sites, the group said.
It said all research and development activities focused on the hydrogen technology would be redirected to other projects.
The company added: '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.'
Stellantis' portfolio of car brands includes Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.
This month, Stellantis said it may be forced to shutter vehicle plants due to the risk of hefty European Union fines levied for not complying with CO2 emission targets.
Earlier this year, Stellantis closed Vauxhall's 100-year-old Luton van factory, putting 1,100 jobs at risk. When it announced the move in November, it partly attributed the decision to the UK government's stringent EV sales targets.
Stellantis had warned earlier in 2024 that plants were at risk because of government pressure on car firms to meet ZEV targets that incrementally rise each year.
In March, it emerged that Skoda was considering laying off 6,000 people as part of drastic cuts to keep up with an expensive electric car rollout.
Audi in December announced it would shutter its EV factory in Belgium, which resulted in 3,000 jobs cut. The factory in Brussels had been billed the 'cradle' of the German car maker's electric drive.
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