For over a decade, the auto industry has been striving for a cleaner future through batteries, hydrogen cells, and synthetic fuels – everything to create hybrid or full powertrains. From Detroit to Tokyo, manufacturers have invested billions into electric drivetrains and zero-emission platforms, each promising to redefine how we power our lives on the road. However, behind the buzzwords and futuristic press releases, one thing remains clear: the internal combustion engine is not going away quietly.
Combustion engines remain the favorites
As EV growth hits friction – from high price tags to spotty charging infrastructure – carmakers are hedging their bets. They are reimagining the combustion engine, not retiring it. This means investing in fuels that work with today’s systems, not just tomorrow’s ideals. Ethanol, biofuels, and other hybrid solutions are gaining a second wind, offering a middle ground between legacy powertrains and full electrification.
And it’s not just talk. Major players are now backing this pivot with real money – billions, in fact — to bring cleaner-burning engines into the spotlight. What’s emerging is not a movement to push back against EVs, but a reshaping of what “green innovation” actually looks like in the real world.
Stellantis is not planning to switch to EV
Stellantis is not ready to give up on gas engines just yet. The group – which owns 14 car brands — is investing around $6 billion in South America to develop new vehicles and engines. The money will go into more than 40 new models, with a strong focus on flex-fuel engines. These are internal combustion engines built to run on both gasoline and ethanol – a setup that is especially popular in Brazil.
Some of the upcoming vehicles will mix that flex-fuel technology with hybrid and plug-in hybrid systems, giving drivers more range and better fuel efficiency. Stellantis also plans to release at least one fully electric car made in the region. The $6 billion investments are scheduled to roll out gradually between 2025 and 2030.
What makes this move even more strategic is that these new engines will fit into Stellantis’ existing factories in South America. This means lower costs and faster production timelines. The first flex-fuel hybrid cars are expected to arrive by late 2024, and some of them will feature dual-clutch automatic transmissions.
The market outside the U.S. for hybrid cars
The market outside the U.S. has become a key market for Stellantis. In Brazil alone, the group holds over 31% of the market. Across the continent, that number sits at 23.5%. It’s also the top seller in countries like Argentina and Chile, and leads the region in commercial vehicles with nearly 29% market share. Last year, Stellantis sold more than 878,000 vehicles in South America.
Fiat, one of the brands under Stellantis, was the company’s best performer in 2023 – largely thanks to strong numbers from Latin America. While Fiat’s presence has faded in Europe and is minimal in North America, it’s thriving across the Southern Hemisphere.
Stellantis is not the only major player still betting on hybrid engines. Toyota recently confirmed it is working on a new generation of gasoline engines. And although South America does not have the strict emissions rules seen in Europe, the landscape could shift. The EU’s planned 2035 ban on new gas-powered cars might even get delayed.
Stellantis had a problem with a famous car in the U.S.
Stellantis had a problem with a famous car in the U.S. one of the main automakers owned by Stellantis, Dodge, is recalling 8,390 electric Chargers in North America due to a software issue. The problem affects the car’s amplifier, which in some cases fails to produce the required pedestrian warning sounds. The recall applies to vehicles built between April 2024 and May 2025 – covering both the 2024 and 2025 model years, according to Stellantis.
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