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Stellantis Revives Diesel in Europe, Ends 2026 PHEVs in U.S. as EV Strategy Shifts

The move reflects softer EV demand plus rising Chinese price pressure, prompting a pivot to hybrids and range‑extended designs.

Overview

  • Dealer listings and company statements show diesel options restored across at least seven European models, including Opel Astra and Combo, Peugeot Rifter and 308, and Citroën Berlingo, with diesel continuing for DS7 and Alfa Romeo Tonale, Stelvio and Giulia.
  • Stellantis says it is keeping diesel in the portfolio to satisfy customer demand under new CEO Antonio Filosa, marking a step back from its earlier EV‑only trajectory for Europe.
  • For North America, Stellantis is discontinuing all plug‑in hybrids for the 2026 model year, making 2025 the final year for models such as Jeep Wrangler 4xe and Grand Cherokee 4xe, Chrysler Pacifica PHEV, Dodge Hornet PHEV and Alfa Romeo Tonale PHEV.
  • The U.S. plan emphasizes conventional hybrids and range‑extended EVs, with some BEVs like Jeep Wagoneer S and Recon proceeding, while the fully electric Ram 1500 REV is delayed and Dodge’s Charger Daytona R/T entry‑level EV is being phased out for 2026 due to weak demand.
  • The retrenchment follows EV sales that lagged expectations, easing EU emissions targets, shifting U.S. regulations and incentives, and financial strain reported last year, even as diesel accounted for only about 7.7% of new car sales in Europe versus roughly 19.5% for EVs.