Stellantis pulls plug on hydrogen fuel cell vans
'The hydrogen market remains a niche segment, with no prospects of mid-term economic sustainability,' said Jean-Philippe Imparato, Stellantis's chief operating officer for the European region. The company cited limited availability of hydrogen refuelling infrastructure, high capital requirements, and the need for stronger consumer purchasing incentives. 'We must 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,' Imparato added.
Hydrogen fuel cell technology was seen as a possible rival to battery electric vehicles to reach zero emissions. When hydrogen and air are fed into a cell it creates electricity and water. The technology could offer faster refill times than recharging electric batteries, but also involves creating expensive new infrastructure and most hydrogen is currently produced from natural gas without capturing the greenhouse gas emissions.
Only Toyota, Hyundai and BMW are still developing fuel cell vehicles and few models are on the roads. France's Renault shut its hydrogen fuel cell factory at the start of the year. Stellantis said staff at the factories would be reassigned to other tasks, but acknowledged the move would create 'financial challenges' for fuel cell supplier Symbio.
Stellantis took a stake in Symbio in 2023 alongside tyre manufacturer Michelin and auto parts supplier Forvia. Symbio opened a fuel cell factory near the French city of Lyon in 2023.
Stellantis said it had launched discussions with the other shareholders in Symbio, but Michelin called the announcement 'unexpected, brutal and uncoordinated'. Forvia noted that Stellantis accounts for nearly 80 percent of Symbio's activity. 'Stellantis's announcement will have serious and immediate operational and financial repercussions for the future of Symbio,' it said. – AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab Times
2 hours ago
- Arab Times
New US Tariffs Could Tank Oil Market - What It Means for Kuwait!
KUWAIT CITY, July 23: A number of oil and economic experts shed light on whether or not the tariffs that America imposed on the European Union and many other countries around the world affect oil prices; as well as the repercussions for the Kuwaiti economy and other countries in the region that rely primarily on oil as a primary source of income, and the action that the Kuwaiti government must take to avoid the repercussions of any looming global economic crisis. The experts stressed the need for the Kuwaiti government to fully prepare for dealing with the repercussions of the increased US tariffs on most countries. They also emphasized the importance of reducing reliance on imported goods by expanding industry, agriculture and all other sectors related to economic growth. Oil expert Kamel Al-Harami asserted that the Trump-like increase in US tariffs on imports from European Union countries and many other countries will impact global inflation, resulting in higher commodity prices. 'This could continue for at least two years until the world adjusts to these conditions. Higher prices will lead to a decline in purchasing power in European Union countries and those affected by the tariff increase, with the expected result being a drop in the price of a barrel of oil -- ranging from $65 to $70,' he explained. He said Kuwait should use the proceeds from the sale of its stake in two companies to cover the budget deficit, while investing these funds in investment projects with good financial returns for the State budget. At the same time, he warned against becoming accustomed to borrowing. Economic expert Ahmed Al-Sadhan believes that the United States' imposition of tariffs on the European Union will inevitably lead to a decline in trade between the two sides, which will in turn lead to global economic instability. 'One of the negative repercussions of this move is the global commodity price hike, which negatively affects the economies of importing countries, including Kuwait and other Gulf states; particularly through increased import costs and a decline in global demand for oil. If the global economy slows down due to these tariffs, oil prices will decline because of low global demand,' he explained. He suggested that in order to avoid these economic crises in light of the escalating economic conflict among the United States, the European Union and other countries, Kuwait must diversify its imports, support local industry, expand its trade partnerships, and stop total dependence on oil in the long term. Dr. Manal Al-Kandari said that Trump's announcement of a new 30 percent tariff on European Union countries has intertwined global and regional economic dimensions. 'This could lead to a decline in European exports to the US, which will result in higher prices of European products in the US market, and a decline in demand for such products. She pointed out that this will cause enormous economic damage to European companies, especially the export-dependent industries like automobiles, aircraft, electronics and technology industries, ultimately leading to an economic recession in the European Union countries. She explained that the repercussions of this recession will spill over to global markets, including Kuwait, other Gulf states and Arab countries; considering this potential recession could reduce the European Union countries' consumption of oil, gas and all petroleum derivatives they import from Kuwait and other Gulf states. 'This is especially true given that trade between Kuwait and the European Union is steadily increasing. The trade between Kuwait and the rest of Europe is significant, as international data issued by the European Statistical Office (Eurostat) showed that Kuwaiti exports to the European Union some years ago amounted to 3.5 billion euros ($3.6 billion), compared to imports of 5.5 billion euros ($5.8 billion). Therefore, a European economic recession will affect the Gulf and Kuwaiti economies,' she added
Kuwait Times
18 hours ago
- Kuwait Times
Markets caught between earnings optimism, tariff fears
LONDON: Stock markets largely rose on Monday, as traders focused on upbeat US corporate news, but President Donald Trump's August 1 deadline for ramped-up tariffs still weighed on European indices. New York extended its positive trajectory from the previous week, which had also pulled Asia higher. In Europe, London and Frankfurt rose, but Paris sank. 'As we start a new week, the focus is once again on tariffs and earnings reports,' said Kathleen Brooks, research director at trading group XTB. Investors in US equities have been encouraged by forecast-beating results from major corporations, against only a modest uptick in inflation that suggested Trump's tariffs impact was not yet a worry. But analysts warned the picture could change if Trump made good on his threat to slap higher tariffs on major US trading partners the European Union, Canada and Mexico. Brooks and others stressed 'the clock is ticking' towards August 1, when a bruising US-EU trade war could be unleashed. Brussels has readied reprisals against a range of US imports—including on Boeing planes and bourbon—should no breakthrough come in its negotiations with Washington. Trump has threatened 30-percent tariffs on EU goods, which would rise further if Brussels retaliated. 'The upcoming US tariff deadline, which is due to kick in a week this Friday, continues to cast a long shadow, particularly across the EU,' said David Morrison, senior market analyst at Trade Nation. US Commerce Secretary Howard Lutnick told CBS News over the weekend he was 'confident' a trade deal would be reached with the EU. But Jochen Stanzl, chief market analyst at CMC Markets, said that any agreement would likely be 'only a framework deal... requiring further negotiations on the details'. 'Realistically, there is a high probability that uncertainty will persist beyond August 1,' he said. That uncertainty will be part of the European Central Bank's calculus as it meets this week. Expectations are for it to hold eurozone interest rates steady, pausing a long cycle of easing. Asia's equities advance was led by Hong Kong and came after strong earnings from Taiwanese chip giant TSMC and news that US titan Nvidia will be allowed to export key semiconductors to China. The yen strengthened against the dollar after Japanese Prime Minister Shigeru Ishiba vowed to stay on even after his ruling coalition lost its majority in the upper house in elections on Sunday. Ishiba, too, is struggling to reach a trade deal with Trump, who has threatened tariffs of 25 percent on goods from Japan. In company news, Jeep maker Stellantis said it suffered a massive, 2.3-billion-euro ($2.7-billion) net loss in the first half of this year, on the back of slumping North America sales and partly from 'the early effects of US tariffs'. Its shares, which have lost more than a third of their value since the start of the year, dipped early on Monday before reversing course and ending up. Oil prices receded on worries of declining global trade. But US Treasury Secretary Scott Bessent suggested the next round of US-China talks could include Chinese purchases of Russian and Iranian oil, which might pressure supply. Trump has already warned he will impose tariffs on countries buying Russian oil if Moscow did not end its war on Ukraine, and Bessent said: 'I would urge our European allies, who have talked a big game, to follow us if we implement these secondary tariffs.' – AFP
Kuwait Times
18 hours ago
- Kuwait Times
ECB expected to hold rates as tariff uncertainty lingers
FRANKFURT: The European Central Bank is set to hold interest rates for the first time in almost a year when policymakers meet this week, despite concerns over the potential impact of higher US tariffs on the eurozone economy. The 26 members of the ECB's governing council will meet just over a week before an August 1 deadline set by US President Donald Trump for the imposition of his government's punitive tariffs. Trump has threatened to triple a basic tariff on imports from the EU to 30 percent if Brussels does not cut a deal by the end of the month, casting uncertainty over the future of transatlantic trade. But the ECB was expected to hold tight on rates instead of preempting the outcome of negotiations, pausing a series of cuts that goes back to September. The central bank has reduced its benchmark rate a total of eight times since June last year and at each of its last seven meetings, bringing it down to two percent. The rapid reduction in rates has come as eurozone inflation has fallen back towards the ECB's two-percent target from the double-digit highs seen in 2022. In June, eurozone inflation sat exactly on the ECB's target and was forecast by officials at the central bank to even out at two percent for the year. The ECB would 'almost certainly leave interest rates unchanged' at the conclusion of its monetary policy meeting on Thursday, analysts from Italian bank UniCredit said in a note. 'The central bank will now want to have more clarity on the trade outlook before it considers adjusting its policy further,' they said. Despite the murky outlook, the ECB was in a 'good place' to deal with what comes next, executive board member Isabel Schnabel told financial news service Econostream Media this month. And with the euro area economy showing some signs of life despite Trump's threats on tariffs, 'the bar for another rate cut is very high', she said. Euro area factory output has grown four months in a row and the bloc's manufacturing PMI—a survey-based measure of manufacturer's overall health—rose in June to its highest level since August 2022. The improving picture painted by recent indicators could, however, be shattered were Trump to follow through with additional tariffs on top of steep existing levies on auto manufacturers, steel and aluminum. The saber-rattling from the Oval Office over trade—and Trump's repeated attacks on the US Federal Reserve's independence—have otherwise had the impact of weakening the dollar against the euro. Were the euro to rise much further it would make matters 'much more complicated', ECB Vice President Luis de Guindos told Bloomberg TV this month. A stronger single currency brought with it the risk of undershooting the ECB's inflation target by making imports cheaper and cooling the economy, while making European exports more expensive. Already, the ECB's forecasts published last month predict inflation to fall to 1.6 percent in 2026, before recovering to two percent the following year. A strong euro meant rate cuts later in the year were a matter of 'when and by how much and not if', ING bank analyst Carsten Brzeski said. The question would get 'more attention' at forthcoming ECB gatherings, Brzeski said, but the uncertainty over US tariffs argued in favor a 'wait-and-see approach'. Trump had upped the threatened level of tariffs on EU exports to the United States since the ECB's last meeting but where they would land after August 1 was uncertain. With the EU locked in talks with Washington to avoid higher tariffs, the necessary 'clarity is unlikely to emerge by next Thursday', UniCredit analysts said. A pause was likely before another cut later in the year, perhaps already in September, the first meeting after the summer, they said. –AFP
