Stellantis halts investments into hydrogen vehicle JV

MILAN: Stellantis NV will withdraw its support for a joint hydrogen-vehicle venture with Michelin and Forvia SE as the automaker cuts its exposure to the fledgling technology, putting the project's future at risk.

The maker of Fiat cars plans to stop investing in the Symbio business that specialises in hydrogen fuel cells by 2026, Forvia and Michelin said in separate statements in response to Bloomberg queries. Stellantis declined to comment.

"Forvia confirms it has been made aware of Stellantis' intention to stop its investments in hydrogen from 2026, including in Symbio," the auto-parts maker said in an email.

The move "has serious and immediate operational and financial consequences for Symbio's future."

Stellantis bought a 33.3% stake in the company two years ago to bolster its hydrogen-van offering.

The auto maker accounts for nearly 80% of Symbio's business volume, according to Forvia.

Hydrogen-mobility companies have struggled to scale up due to the fuel's high cost, lack of standardisation and sparse infrastructure.

Battery-electric drivetrains have become the leading alternative to petrol and diesel engines for vans and passenger cars.

Stellantis is trying to improve sales in Europe and the US after a challenging period under former Chief Executive Officer Carlos Tavares.

His successor, former Jeep boss Antonio Filosa, is expected to shake up product strategy as he works to introduce more affordable vehicles and overcome trade hurdles.

Symbio has around 650 employees, mostly in France, and supplies hydrogen-mobility solutions for vans, buses and trucks, according to its website.

Stellantis notified Forvia and Michelin of its decision in early May, just a few days after approving the latest version of Symbio's long-term business plan, people familiar with the matter said.

"It's unclear what will happen to the stake Stellantis owns in Symbio," the people added.

"This unexpected, sudden and uncoordinated decision is all the more surprising given that Stellantis has always stated its ambition to be a pioneer in this new market," Michelin said in an email.

The tyre maker "is primarily concerned about the impact on Symbio's employees in France and abroad," it added.

Media representatives for Michelin and Forvia declined to elaborate further on the Stellantis decision and the future of the venture.