Stellantis Wins Two Regulatory Reprieves as European Battery Shortage Halts Production
Published on 09/29/2026 at 16:20 | Editorial boerse-global.de
Stellantis has secured a pair of favorable outcomes on the US regulatory front, even as battery supply problems force the automaker to idle a French assembly plant and its share price hovers near a 52-week low.
The National Highway Traffic Safety Administration closed its preliminary investigation into engine-compartment fires affecting more than a million Stellantis vehicles, the agency announced Tuesday. The probe, opened in September 2024, initially covered roughly 781,500 Jeep Wrangler and Jeep Gladiator SUVs following reports of fires erupting in parked, switched-off vehicles near the power steering pump.
The matter was resolved after the manufacturer carried out technical remedies, according to Reuters. Chrysler expanded its existing recalls in June 2026 to nearly 1.08 million vehicles from model years 2021 through 2025, covering units built between June 24, 2020 and December 2, 2024. NHTSA said the expanded recall addressed the identified causes, though it intends to keep monitoring the vehicle segment. The closure ends a two-year regulatory review in Stellantis's key North American market.
$6.6 Billion in Relief From Looser Fuel Rules
Separately, the safety agency finalized less stringent corporate average fuel economy standards, a move expected to cut Stellantis's costs by an estimated $6.6 billion through 2031. The decision eases the regulatory burden on traditional automakers navigating the shift toward lower-emission drivetrains in North America. For Stellantis, the revised standards remove the prospect of penalties and costly model-portfolio adjustments that had previously loomed at that scale.
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The company is also widening its software push. Stellantis is expanding its partnership with technology firm Momenta to develop advanced driver-assistance systems for future production models. The technology will be deployed across the Jeep and Peugeot brands as well as through Stellantis's Chinese joint venture with Dongfeng, with a rollout planned for China, Europe and other international markets. The alliance is aimed at addressing intensifying competition in automated driving features across several core regions.
Battery Delays Halt La Janais for a Week
On the operational side, Stellantis faces bottlenecks in European electric-vehicle output. The French plant at La Janais, south of Rennes, will stop its lines for seven days in October — on the 22nd and 23rd, plus the five working days of the following week. The interruption stems from delivery delays for drive batteries used in the electric version of the compact Citroën C5 Aircross SUV.
The required battery packs come from Automotive Cells Company's facility in the Pas-de-Calais department. The joint venture involving Stellantis, TotalEnergies and Mercedes is ramping up production of the long-range 680-kilometer batteries more slowly than planned, according to plant management. Affected workers at La Janais will be placed on short-time work combined with training measures during the one-week stoppage.
Peugeot Invest Flags Disappointing Share Performance
Investor sentiment remains strained despite the regulatory wins. Peugeot Invest said Thursday it saw positive signals in Stellantis's first-half results, but described the stock's performance as disappointing.
The shares rose 0.3% to EUR 4.06 on Monday, yet have fallen 57% since the start of the year. On Tuesday the stock traded at EUR 4.04, down 0.6%, keeping it close to its 52-week low of EUR 3.93 set just last week. Operational developments in North America and the challenges of ramping up new platforms have weighed heavily on the group's valuation in recent months. The now-quantified savings from the US fuel standards at least give management breathing room on the regulatory front.
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