Transcript
Big Three pillar Stellantis issued a rather shocking warning this week when it reported preliminary financial figures that estimate a $2.7 billion first half loss.
And as the auto company gets focused on the poor financials – impacted largely by tariff costs and related production losses – it’s also unveiled some strategic changes relating to R&D.
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Stellantis said it will suspend its hydrogen development program and - with it - will discontinue the hydrogen powered commercial vans that it had previously planned to begin making this year.
In explaining the decision, Jean-Philippe Imparato, Stellantis' Chief Operating Officer for Enlarged Europe, said the technology had “no prospects of mid-term economic sustainability," after describing the hydrogen market as a “niche.”
Stellantis has not been alone in efforts to commercialize the technology. Despite its ability to produce emission-free power while operating, producing hydrogen for power has traditionally been environmentally unfriendly. Secondly, lack of scale means it’s both expensive and suffers from a lack of refueling infrastructure.
And it’s this infrastructure issue that Stellantis cited as a primary reason behind its decision.
According to Fastech, there were just 54 public hydrogen stations in the United States in 2024, and another 20 privately owned hydrogen refueling stations for fleets.
And while other major auto companies – Toyota, most notably – continue to be bullish on hydrogen fuel cells, things are still hanging by a thread despite the optimism.
Last year, Toyota offered such dramatic discounts on its Mirai – an electric vehicle that runs off of a hydrogen fuel cell – that it appeared to put Toyota completely in the red once a generous promotion for free fuel was added in.
Whether things will turn around remains to be seen, but clearly Stellantis doesn’t want to wait around to find out.
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X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
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Big Three Pillar Salontis issued a rather
shocking warning this week when it reported
00:04.760 --> 00:10.800
preliminary financial figures that estimate a
$2.7 billion first half loss.
00:10.880 --> 00:16.079
And as the auto company gets focused on the
poor financials impacted largely by tariff
00:16.079 --> 00:22.170
costs and related production losses, it's also
unveiled some strategic changes relating to R&D.
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Stella has said it will suspend its hydrogen
development program and with it will
00:27.520 --> 00:30.052
discontinue.
The hydrogen powered commercial vans that it
00:30.052 --> 00:32.842
had previously planned to begin making this
year.
00:32.972 --> 00:38.722
In explaining the decision, Jean Philippe
Imperato, Stellati's chief operating officer
00:38.722 --> 00:44.932
for enlarged Europe, said the technology had no
prospects of mid-term economic sustainability
00:44.932 --> 00:47.882
after describing the hydrogen market as a niche.
00:48.092 --> 00:51.722
Stellantis has not been alone in efforts to
commercialize the technology,
00:51.893 --> 00:55.202
despite its ability to produce emission-free
power while operating,
00:55.493 --> 00:59.776
producing Hydrogen for power has traditionally
been environmentally unfriendly.
00:59.986 --> 01:04.585
Secondly, lack of scale means it's both
expensive and suffers from a lack of refueling
01:04.585 --> 01:07.106
infrastructure.
And it's this infrastructure issue that
01:07.106 --> 01:10.825
Stellati cited as a primary reason behind its
decision.
01:11.106 --> 01:15.545
According to FastTech, there were just 54
public hydrogen stations in the United States
01:15.545 --> 01:21.146
in 2024, and another 20 privately owned
hydrogen refueling stations for fleets.
01:21.225 --> 01:24.185
And while other major auto companies, Toyota,
most notably,
01:24.599 --> 01:29.480
Continue to be bullish on hydrogen fuel cells.
Things are still hanging by a thread despite
01:29.480 --> 01:32.680
the optimism.
Last year, Toyota offered such dramatic
01:32.680 --> 01:37.470
discounts on its Mirai, an electric vehicle
that runs off a hydrogen fuel cell,
01:37.839 --> 01:42.599
that it appeared to put Toyota completely in
the red once a generous promotion for free fuel
01:42.599 --> 01:45.559
was added in.
Whether things will turn around remains to be
01:45.559 --> 01:50.080
seen, but clearly, Stellati doesn't want to
wait around to find out.
01:50.440 --> 01:52.440
I'm Anna Wells, and this is manufacturing now.
