Stellantis Scraps Plans for Hydrogen-Fueled Automobiles Launch
In a surprising move, Stellantis, the parent company of Chrysler, Dodge, Jeep, and Citroen, has decided to discontinue its hydrogen fuel cell technology development program. The decision comes amidst limited hydrogen refueling infrastructure, high capital investment requirements, weak consumer demand, and the lack of mid-term economic sustainability for hydrogen light commercial vehicles.
The company's strategic choice not to launch the new hydrogen fuel cell vans was primarily driven by the realization that hydrogen-powered light commercial vehicles are unlikely to be adopted before the end of the decade. Instead, Stellantis will focus on electric and hybrid passenger and light commercial vehicles to meet stringent European CO2 regulations.
This decision has led to the cancellation of planned hydrogen-powered Pro One vehicles, including medium and large vans intended for France and Poland. Stellantis emphasized that this move is a strategic choice to maintain competitiveness and align with customer expectations, not a reflection on staffing, as related R&D resources will be redirected to other projects.
The discontinuation of Stellantis' hydrogen fuel cell technology development program has significant implications for its former joint venture, Symbio. Symbio, co-owned by Stellantis, was a key player in developing and marketing hydrogen fuel cell systems. With Stellantis exiting this technology, Symbio’s future and projects relying on Stellantis as a major stakeholder and customer are likely to face uncertainty or scale-down unless alternative partners or markets are found.
However, the exact impact on Symbio is yet to be clearly defined, with Stellantis initiating discussions with Symbio shareholders to evaluate the current market consequences of its decision. It's worth noting that Stellantis accounts for most of Symbio's business volume.
In the broader market, while some OEMs like Stellantis and General Motors are pulling back from hydrogen fuel cell investments, other manufacturers such as Toyota, Honda, and Hyundai remain committed, continuing advancements in hydrogen technology and vehicle launches. This contrast highlights differing strategic assessments of hydrogen fuel cells’ commercial viability and timing across the auto industry.
Stellantis' decision does not involve hydrogen fuel cell technology in its response to European CO2 regulations. Instead, the company is mobilizing to respond to these demanding regulations by focusing on electric and hybrid vehicle technologies.
[1] Source: Reuters, 2023 [2] Source: Autocar, 2023 [3] Source: Green Car Congress, 2023 [4] Source: Stellantis press release, 2023
Despite Stellantis' decision to discontinue its hydrogen fuel cell technology development program, other manufacturers such as Toyota, Honda, and Hyundai remain committed to advancements in hydrogen technology. Without Stellantis as a major stakeholder and customer, Symbio's future and projects may face uncertainty or scale-down, unless alternative partners or markets are found.
