--- title: "AUTO FILE-Stellantis’ diesel revival, and a Mexican foothold for China’s carmakers" description: "Stellantis is reviving diesel models in Europe, introducing at least seven new diesel variants despite a significant decline in diesel sales over the past decade. This move comes after a $27 billion w" type: "news" locale: "en" url: "https://longbridge.com/en/news/276145150.md" published_at: "2026-02-17T16:00:01.000Z" --- # AUTO FILE-Stellantis’ diesel revival, and a Mexican foothold for China’s carmakers > Stellantis is reviving diesel models in Europe, introducing at least seven new diesel variants despite a significant decline in diesel sales over the past decade. This move comes after a $27 billion writedown related to its EV plans, as diesel offers a lower-cost alternative for consumers. Meanwhile, Chinese automakers BYD and Geely are vying for a Nissan-Mercedes plant in Mexico, aiming to expand into South America and potentially the U.S. market. Additionally, Germany's far-right AfD party is seeking to gain influence among auto workers through union representation. Feb 17 - By Nick Carey, European Autos Correspondent Greetings from London! Car prices for U.S. consumers have been rising for years, hovering close to the $50,000 mark for nearly a year now – a startling figure when you think that not so long ago, $40,000 was considered the baseline for premium cars. Industry experts have long warned of an affordability crunch and that far too many U.S. consumers have been priced out of the new car market. But now, as Reuters colleague Nathan Gomes reports here, U.S. car buyers that can stretch their budgets to a new car are opting to ditch expensive trims and go for more basic models. Inventories for higher-trim models are at far higher levels than basic versions. Lower trims mean lower margins. Unless of course you can get enough volume to cover the difference. So automakers are now under pressure to beef up their lower-cost offerings for more frugal U.S. car buyers. Which brings us to today’s Auto File… - Stellantis brings back diesels - China’s carmakers in Mexico - Germany’s far right woos car workers Stellantis’ diesel comeback In one of the more unexpected moves of the last couple of years, Stellantis has been quietly bringing back diesel car models to Europe. As Reuters colleague Gilles Guillaume reports, the world’s No. 4 automaker is resurrecting diesel versions for at least seven car and passenger van models for the European market and keeping diesel for four other models. You can read all about it here. This comes on the heels of Stellantis’ $27 billion writedown related to its pullback from ambitious plans for EVs. At first glance, diesel appears a counterintuitive choice. In just a decade, diesel cars fell from more than half of all European car sales in 2015 to 7.7% in 2025 in the wake of Volkswagen’s Dieselgate emissions cheating scandal. Most automakers have either dramatically reduced the number of diesel models they sell or have abandoned them altogether. But Stellantis can sell diesels at much lower prices than EVs – even factoring in electric car subsidies and penalties for diesel in some markets. It’s also an area that Chinese automakers have not bothered with. So it protects them from price competition. Assuming more European car buyers want diesel after years of decline, that is. This will be an interesting experiment to watch. Recommended reading: - Lawsuits likely for Trump’s climate rollback - China takes on EV price war - Lacking oil, Cubans go electric BYD, Geely eye Mexico Chinese automakers have wanted a foothold in Mexico for some time, as factories there would give them access to South America and potentially even to the U.S. market if the Trump administration or a successor down the line decides to let them in. As Reuters colleague Emily Green reports, China’s top two automakers BYD and Geely are among the finalists seeking to buy a Nissan–Mercedes-Benz plant in Mexico that is slated for closure. You can read all about it here. According to sources, these finalists – along with Vietnam’s VinFast – emerged from nine companies who want to acquire the factory, including at least two other major Chinese manufacturers: Chery and Great Wall Motor. This seismic shift in a market where U.S., European and Japanese automakers have dominated for decades places Mexican officials in a bind. Trump’s tariffs have battered Mexico’s auto sector, while Chinese investments in under-utilized factories could generate much-needed jobs. But Mexican officials also fear that Chinese production in Mexico could inflame Washington and jeopardize this year’s North American trade-agreement negotiations. Sources say that while Mexico can’t block a factory sale, economy ministry officials have quietly urged state authorities to slow-walk Chinese auto investments until the government completes U.S. trade talks. Far right woos German car workers Germany’s far-right Alternative for Germany (AfD) party has made large political gains in recent years and is now turning its attention to winning union representation at the country’s automakers to further boost its showing on the national stage. As Reuters colleagues Rachel More, Sarah Marsh and Andreas Rinke report, Zentrum, a far-right union affiliated with the AfD, is contesting elections to factory works councils taking place across the country from March to May. You can read all about it here. Works councils are a pillar of the corporatist model which proponents say helped foster stability and prosperity in Germany after World War Two, giving about 37% of employees a formal voice within companies. Although some are only loosely affiliated with the AfD, they could give the party - which leads nationwide opinion polls and is on track to make gains in five state elections this year - a bigger platform to woo workers. Great Wall attempts a comeback Great Wall Motor was one of the first Chinese automakers to take a crack at the European market with an EV-heavy lineup. But unlike others like BYD, Chery and Leapmotor that have started to do well in Europe, Great Wall has seen sales fall 25.4% in 2024 and almost 30% in 2025 to just 3,500 cars. Now, Great Wall plans a comeback in Europe with hybrids and combustion-engine models, as part of an ambitious plan to double overseas sales to 1 million vehicles by the end of the decade. You can read all about it here. If Great Wall wants to hit its 2030 target, then it absolutely has to succeed in Europe because South America, Asia, Africa and the Middle East will never provide enough volume to get there. But a lot has changed in Europe since Great Wall made its debut at a car show in Munich in 2021: a number of Chinese rivals have experienced success there in the intervening years and European automakers are also launching cheaper models to compete with the challenge from the East. Second chances are tough in any market. But with dozens of other Chinese automakers in Europe or coming soon, it is not going to be easy. Fast Laps A Toyota tender offer to buy out its Toyota Industries unit has been extended until March 2 after it appeared to fall short of the necessary shareholder votes in the face of staunch opposition from activist shareholder Elliott Investment. Tens of thousands of cars are being exported from China to Russia under gray-market schemes that often circumvent Western and Asian government sanctions and automakers’ commitments to exit the Russian market, according to registration data reviewed by Reuters and interviews with five people involved in the trade. China’s commerce ministry has decided to allow Chinese EV makers to negotiate independently with the European Union, after Volkswagen secured a tariff reprieve for one of its China-made SUV models. Rivian’s results beat Wall Street targets and the U.S. EV maker stoked expectations for its rival model to Tesla’s best-selling Model Y, saying its new, more affordable R2 SUVs would drive a 53% jump in 2026 deliveries. JSW MG Motor, a joint venture between China’s SAIC and India’s steel-to-cement JSW Group, plans to invest up to $440 million to expand its India factory and launch new cars with a focus on hybrid and electric models. Loss-making Indian two-wheeler maker Ola Electric aims to lower its operating costs by as much as 50% in the coming quarters, as it sets its sights on turning profitable after posting a narrower third-quarter loss. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here. (Editing by Bernadette Baum) ### Related Stocks - [GELYY.US - Geely Auto](https://longbridge.com/en/quote/GELYY.US.md) - [STLA.US - Stellantis NV](https://longbridge.com/en/quote/STLA.US.md) - [002594.CN - BYD](https://longbridge.com/en/quote/002594.CN.md) - [MOTO.US - SmartETFs Smart Transportation & Tech ETF](https://longbridge.com/en/quote/MOTO.US.md) - [GELHY.US - GEELY AUTOMOBILE HOLDINGS LIMITED SPON ADS EACH REP 20 ORD](https://longbridge.com/en/quote/GELHY.US.md) - [01211.HK - BYD COMPANY](https://longbridge.com/en/quote/01211.HK.md) - [BYDDF.US - BYD Company Limited](https://longbridge.com/en/quote/BYDDF.US.md) - [00175.HK - GEELY AUTO](https://longbridge.com/en/quote/00175.HK.md) - [BYDDY.US - BYD Company](https://longbridge.com/en/quote/BYDDY.US.md) - [CARZ.US - First Trust S-Network Future Vehicles & Tech ETF](https://longbridge.com/en/quote/CARZ.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 比亞迪美國子公司提訟 要求退還關税 | 比亞迪美國子公司提起訴訟，要求退還在川普政府進口關税政策下繳納的關税，認為相關行政命令無效，徵收關税非法。此案於 1 月 26 日提交美國國際貿易法院，尚未有最高法院裁決。比亞迪與其他超過 1,000 家企業共同提起訴訟，涉及數十億美元的關 | [Link](https://longbridge.com/en/news/275415968.md) | | Stellantis 在歐洲重新推出了幾款柴油車型 | 斯特蘭蒂斯正在歐洲恢復至少七款汽車和麪包車的柴油版本， reversing its previous phase-out strategy。這包括標緻 308 和歐寶阿斯特拉等車型，因為在麪包車細分市場中對柴油的需求依然強勁。儘管市場正在向 | [Link](https://longbridge.com/en/news/276047229.md) | | 巴西取消了電動汽車組裝套件的優惠關税政策 | 巴西已結束對電動車（EV）組裝套件的優惠關税，這主要影響到像比亞迪這樣的中國製造商。關税率將逐步提高至 35%，到 2027 年 1 月時達到這一水平，而目前的關税率為 14%。這一決定是在與比亞迪的爭端後做出的，旨在使組裝套件的關税與完全 | [Link](https://longbridge.com/en/news/275435398.md) | | 比亞迪參與了針對特朗普關税的訴訟 | 比亞迪已加入針對特朗普進口關税的訴訟，尋求退還已支付的關税。該訴訟於 1 月 26 日在美國國際貿易法院提起，比亞迪認為這些關税無效，徵收不合法。儘管比亞迪在美國不銷售乘用車，但其仍需為電動卡車和公交車的材料支付關税。此次訴訟是更廣泛挑戰的 | [Link](https://longbridge.com/en/news/275489998.md) | | 比亞迪提起訴訟，要求退還特朗普時期美國汽車關税 | 中國汽車製造商比亞迪已對美國政府提起訴訟，挑戰特朗普總統的關税，並尋求自四月以來支付的税款退款。這是中國汽車製造商首次就美國關税提起訴訟。比亞迪認為《國際緊急經濟權力法》並未授權徵收邊境税。該案件目前在美國國際貿易法院待審，同時美國最高法院 | [Link](https://longbridge.com/en/news/275327026.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.