By Giulia Segreti
ROME, July 16 (Reuters)
Stellantis announces it will discontinue its investment in hydrogen fuel cell vehicles and discusses the automotive industry’s inclination to invest more in battery electrification. This change in its planning is noteworthy because it directly affects Symbio, its joint venture, which may face operational uncertainty in the future. Is it true that the reason behind this decision is a stagnation in the hydrogen market? What can we expect from the future of the Stellantis future in the automobile sector? Discover this and more information.
Stellantis abandons its hydrogen mobility program
Carmaker Stellantis STLAM.MI said on Wednesday it would discontinue its hydrogen fuel cell technology programme and no longer launch hydrogen-powered vehicles this year, raising questions about the future of hydrogen subsidiary Symbio. 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.
“The hydrogen market remains a niche segment, with no prospects of mid-term economic sustainability,” Jean-Philippe Imparato, chief operating officer for enlarged Europe, said in a statement. Car parts suppliers Michelin MICP.PA and Forvia FRVIA.PA said Stellantis’ decision came as a surprise and would have “serious operational and financial consequences” for Symbio, a joint venture in which Stellantis acquired a stake in 2023.
Stellantis is its main customer, accounting for nearly 80% of Symbio’s business volume, said Forvia. “Michelin’s primary concern lies with the impact this will have on Symbio’s employees, both in France and abroad,” the tyremaker said in a statement. Symbio employs more than 650 people, according to its website. It opened a gigafactory in eastern France in 2023 as well as a new site in California.
Symbio will need new strategic directions
Symbio now faces a challenging situation because approximately 80% of its production is dedicated to Stellantis. With this decision, Symbio must see alternative strategies tosustain its operations, even with declining demand. There is concern for the employees of the companies involved amid the need to find viable ways to maintain the joint venture’s financial viability.
Stellantis said it has initiated discussions with Symbio shareholders to evaluate the current market consequences and to preserve the best interests of the joint venture, in line with their respective obligations. Imparato said the automaker 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 production schedule will need to be revised
Stellantis’ strategy, after shifting its production from hydrogen fuel cell vehicles to electric and hybrid vehicles, is to focus on the Pro One production line. This decision will affect employee numbers and research investment, all now focused on technologies with the greatest market potential. This move reinforces the pursuit of competitiveness and adaptation to real consumption and infrastructure trends.
The group said it did 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 affect 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.
Shifting priorities towards a cleaner future
Stellantis’s withdrawal from the hydrogen-powered car market reflects the current challenges of this technology and also highlights the inevitable evolution of the automotive market toward more profitable and applicable options. Hydrogen has not yet proven to be this viable option, at least in the short term.