ROME (Reuters) -Carmaker Stellantis 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 and Forvia 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.
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 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.
(Reporting by Giulia Segreti, additional reporting by by Mathias de Rozario in Gdansk and Dominique Patton in Paris; Editing by Cristina Carlevaro, Tomasz Janowski and Emelia Sithole-Matarise)
