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Stellantis to bet on Italian engines in Europe
Stellantis may be about to initiate a silent but structural change in its combustion engine strategy in Europe. After years of betting on French-origin blocks — especially Peugeot's PureTech — the automotive giant should turn to an Italian alternative in the future: FIAT's Firefly engines, also known as SGE (Small Gasoline Engine).
There is still no official confirmation, but statements by Emanuele Cappellano, CEO of Stellantis Europe, at a roundtable at MIMIT (Ministry of Enterprises and "Made in Italy") earlier this year, seem to confirm the rumors. Cappellano said that the group decided to "invest in the future of GSE engines to guarantee their use beyond 2030". This implies that the Firefly/GSE engine is no longer an end-of-life engine in the European continent, as it seemed.
The decision is unlikely to have come about by chance. The problems with PureTech engines are well known — mainly due to the use of the oil-bathed timing belt solution — and the consequences are too: expensive recall operations and damaged reputation.
Something that is difficult to recover from, despite the improvements made and the introduction of a new variant that replaced the belt with a chain, used in the Hybrid versions of several models in various brands of the group. A change that solves the problem once and for all.
For several weeks now, the Stellantis seems to be evolving at high speed. The return of diesel, extension of the Italian FireFly engineWith each announcement, the same signal appears: the Group is gradually abandoning the idea of a single engine for the whole of Europe. Behind the scenes, however, discussions are going much further than the official communication suggests. According to several industry reports, Stellantis is now considering a major industrial changeover: gradually replacing PSA-sourced engines, including the famous 1.2 PureTech, with Italian engines from Fiat. And this time, it's no longer just a rumor.
Behind Euro 7, a budget battle...Officially, the arrival of the Euro 7 standard means that internal combustion engines will have to be modernized across the board. Unofficially, it forces manufacturers to choose what to invest in, and what not to invest in.
Adapting an entire engine family to this standard costs millions of euros. However, according to several sources inside the sector, Stellantis has made a clear choice: to concentrate its budgets on Italian engines rather than pursue the in-depth development of the PureTech and BlueHDi engines.
It's not just a question of industrial image or internal politics. It's first and foremost a technical and financial trade-off. The Group believes that modernizing French engines would be very costly for an uncertain result in the long term, particularly in terms of reliability and durability under Euro 7 constraints.
PureTech's problem isn't just a belt...For years, the 1.2 PureTech has had a difficult reputation surrounding its belt. But according to technical information from the industry, the problem goes deeper than that. Internally, the engine is said to be mechanically more fragile, with faster wear of certain key components and a higher risk of breakage over long distances. The Euro 7 upgrade could even accentuate these stresses, by increasing internal temperatures and pressures.
Conversely, the Fiat FireFly (GSE) engine is said to be more structurally robust. Its more recent design and larger components would offer a better margin of durability, making it a sounder basis for the next thermal decade. In other words, the debate would no longer be purely industrial, but purely mechanical.
The changeover has already begun...Internal reports even suggest that the timetable has already been set. The 1.6 JTD engine (present in the Alfa Romeo Tonale) is said to be in preparation for equipping a large part of the European range: Peugeot 208, 308, 2008, 3008, 4008, 5008, but also Opel Corsa, Astra, Mokka or Grandland, not forgetting numerous Citroën models.
Other displacements would follow, notably the 2.0 and 2.2 adapted to future standards. Ironically, the 2.2-liter is said to be a former PSA-FCA collaboration... but would now return under the Italian banner. If confirmed, this would mean a historic reversal: for years, Italian brands have adopted French engines within the group. The balance could now be reversed.
A strategy consistent with recent decisions:
-Taken separately, each event might seem isolated: the rescue of the FireFly, the return to diesel, the investment in Termoli, the new eDCT boxes.
-Taken together, they tell a different story: Stellantis is preparing a new common thermal base for Europe, but different from the one planned when the group was created.
The initial plan was based on PSA engines as the backbone, with the 1.2L EB2 and 1.6L EP6. The current plan could be based on Fiat engines. The logic becomes clear: rather than developing two complete Euro 7-compatible families, the Group chooses the one deemed the most technically sustainable.
This choice would also have important symbolic significance. At the time of the PSA-FCA merger, many believed that French technology would become dominant. For several years, this was indeed the case.
But the slower-than-expected energy transition is changing priorities: robustness and longevity are once again essential to amortize development costs. Stellantis could finally rely on its Italian mechanical heritage to get through the last decade of thermal power in Europe.
Nothing has yet been officially confirmed. But the industrial direction now seems coherent:
-an electrified Fiat diesel for long-distance travel,
-an electrified Fiat FireFly for hybrid petrol,
-and electric for the rest.
If this strategy comes to fruition, it would mark a major turning point in the Group's history. Not only would the PureTech no longer be Stellantis' core engine, but Peugeot could be driving tomorrow... with a Fiat heart, as is already the case in Brazil.
Firefly gains new prominence...Now the Italian alternative emerges. Originally developed by FIAT, the Firefly engines — also known as the GSE (Global Small Engine) family — are now gaining new prominence within the group.
These three- and four-cylinder blocks stand out for having a simpler architecture and solutions considered more robust. In addition, they were designed from the beginning to support electrification, whether in mild-hybrid, hybrid or plug-in hybrid systems.
Currently in Europe, they are only used in the FIAT Pandina, the new 500 Hybrid (one-liter, three-cylinder) and the Alfa Romeo Tonale (1.3 and 1.5-liter, four-cylinder). They are more common in South America, used not only by FIAT, but also by Jeep, Peugeot and Citroën.
For Stellantis, this change has several strategic advantages. On the one hand, it allows for a reduction in the complexity of the engine range, concentrating resources on a common technical base. On the other hand, it helps to solve image problems associated with other engines.
There is also an industrial reason. The production of these engines is already well established in Stellantis factories in Betim (Brazil) and Termoli (Italy), facilitating integration into different models and brands. If this transition expands to many more models, it is expected that they can be produced in more factories.
The change will be gradual...Despite this, an immediate transition is not expected. The Firefly engines will be adapted to the Euro 7 standard, which comes into effect on November 29, 2026. The replacement of the PureTech engines should then occur gradually, following the natural model renewal cycle.
The strategy represents a symbolic change within Stellantis. Since its formation in 2021, the French side of the group has had more weight in decisions regarding the use of platforms and engines in compact models. Now, the center of gravity may move more towards Italy.
Stellantis is pivoting its European strategy to focus on Italian-made engines and components, reversing previous, heavily electrified, or French-engine-focused plans due to slowing electric vehicle (EV) demand and high costs. The company is investing in, rather than phasing out, Italian engine production to better meet customer demand for more affordable hybrid and, in some cases, diesel vehicles in Europe.
Key aspects of the shift to Italian engines(below):
FireFly/GSE revival: The Fiat-designed FireFly (GSE) engine, which was previously considered to be nearing the end of its life, will now be adapted to meet Euro 7 emissions standards to remain in production beyond 2030.
Termoli plant focus: The Termoli plant in Italy is becoming a central hub for producing these Euro 7-compliant gasoline engines and new e-DCT (electrified dual-clutch) gearboxes.
Engine replacement: Stellantis is considering replacing PSA-sourced engines (like the 1.2 PureTech) with Italian-made engines across various models, including those from Peugeot, Opel, and Citroën.
Diesel reintroduction: In a reversal of previous plans, Stellantis is reintroducing diesel engine options, specifically, the 1.6-liter MultiJet unit, on several European models.
Investment in EV parts: In addition to ICE engines, Stellantis is investing $41 million to produce steel components for electric drive modules at the Verrone plant in Italy, aiming for over 400,000 units annually by 2027.
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