Stellantis Pulls Diesel Cars Back In EV Recession... I don't know about carbon neutrality

*This content was translated by AI.

Stellantis will revive its diesel car lineup, which had been in the process of exiting the European market. This is interpreted as a "struggle measure" to protect realistic profitability and market share in the automobile industry's trend toward carbon neutrality.

13 (Reuters) - Stellantis recently decided to resume sales of its major brands of diesel models across Europe or expand production. It is contrary to the all-in strategy of electric vehicles by shouting the slogan "Dare Forward 2030" just a few years ago. The background of this decision reflects the reality that the EV market has cooled sharply due to reduced subsidies for EV sales in Europe, a lack of charging infrastructure, and a contraction in consumer sentiment caused by high interest rates.

Stellantis' decision is based on the calculation that it will again target consumers who value economic feasibility. Stellantis-affiliated brands such as Peugeot, Citroen and Fiat have strengths in small and commercial vehicles, as demand for diesel engines with high fuel economy and long-distance driving efficiency remains strong at these levels. In fact, many drivers in Europe are again bombarded with inquiries to internal combustion locomotives due to the high initial purchase cost and driving distance anxiety of electric vehicles.

This move by Stellantis is expected to have some impact on other finished cars. Until now, the European Union (EU) was gradually pushing diesel engines to exit in accordance with environmental regulations. However, the growing share of Chinese electric vehicles has increased the sense of crisis in the automobile industry, and expectations have grown that the latest emission reduction technologies, such as Euro 7, can meet regulations. Above all, it is believed that it can meet the practical needs of consumers. Therefore, rather than electric vehicles that cost a lot of money to develop and are difficult to increase their market share, the judgment was that sales should be increased immediately even at the cost of the carbon emission trading system.

In the meantime, Stallantis has been negative about the conversion of electric vehicles in other ways, even though he has even put forward a slogan for the conversion of electric vehicles on his own. For example, Stellantis CEO Carlos Tavares has criticized the political circle's radical push to switch to electric vehicles, adding to the cost burden on automakers and violating consumers' options. The revival of diesel cars is also interpreted as a result of his belief. He is emphasizing the importance of a "multi-energy strategy" that maintains various powertrains such as internal combustion engines, hybrids, and diesel until electric vehicle technology matures and prices fall to reasonable levels.

However, there are also concerns among environmental groups and some experts. It is pointed out that the flow of mobility transformation, which has been difficult to cope with the climate crisis, can regress. In particular, there is great concern that if diesel cars take over the road again, the speed of urban air quality improvement could be delayed. It is also followed by warnings that if the financial resources to invest in strengthening EV competitiveness in the long term are dispersed in maintaining internal combustion engines, the technology gap with Tesla and Chinese electric vehicle companies could widen in the future.

Nevertheless, the market is cold. This is because automakers, whose sales performance is soon surviving, cannot neglect the situation of accumulating electric vehicle inventory. Stellantis' decision clearly shows a cross-section of the global finished car industry that is agonizing between ideal environmental goals and harsh market realities. Industry attention is focused on whether the return of diesel cars in the European market will be only a temporary phenomenon or a new transitional survival model to advance the era of popularization of electric vehicles.

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*This content was translated by AI.