«We denied the difficulties»: Peugeot's boss makes his mea culpa on the PureTech engine... which Stellantis replaces with an Italian engine

For several years, the 1.2 PureTech engine was one of the industrial pillars of Peugeot and, more broadly, of the former PSA Group. But this three-cylinder petrol engine, which won awards at the start of its career, gradually found itself at the heart of a major controversy linked to reliability problems. The situation is now serious enough for Peugeot's CEO himself to admit that mistakes were made in the management of the project.

In an interview with the French daily «Le Parisien», Peugeot CEO Alain Favey admitted that the company's response to customer criticism had not been up to scratch.

«We gave the impression of denying the difficulties».»

For several years now, many owners of vehicles equipped with the 1.2 PureTech engine have been reporting recurring technical failures. The most frequently reported problems concern excessive oil consumption and premature deterioration of the timing belt, sometimes leading to major breakdowns.

Faced with this criticism, the automaker's response was not always convincing. Today, Alain Favey acknowledges that Peugeot's attitude may have exacerbated customer frustration.

According to him, many motorists felt abandoned when problems arose. The company gave the impression of «playing for time, even denying the difficulties» instead of confronting them head-on. A rare admission for the head of a major automaker.s

In an attempt to calm the situation, Stellantis launched a retroactive compensation platform in early 2025 for customers who experienced problems between 2022 and 2024. But the case has also taken a legal turn, with the filing of a class action before the Versailles court targeting these engines.

Peugeot says the problem is now under control

According to Alain Favey, the most critical phase is now behind the group. The defects that affected earlier versions of the PureTech engine would no longer affect models currently on the market.

However, the reimbursement platform has already received several thousand claims, proving that the case remains sensitive for the brand's image.

The executive also promises a change of approach for the future. In the event of a comparable industrial problem, Peugeot says it intends to intervene more quickly at source, including by launching earlier recall campaigns, to prevent customer relations from deteriorating. But while Peugeot is trying to turn the page, Stellantis already seems to be preparing for what comes next.

Stellantis prepares for the gradual end of PureTech

In parallel with this public questioning, the group headed by Antonio Filosa, under the chairmanship of John Elkann, is reviewing its strategy for small-displacement combustion engines.

According to several corroborating reports, PSA-sourced PureTech engines will be gradually replaced by 2026 in the Group's mass-market models.

The next generation will come from Italy.

Stellantis plans to rely more heavily on FireFly (GSE) engines developed by Fiat. These engines, produced at the Termoli plant, include three-cylinder 1.0-liter and four-cylinder 1.5-liter versions, with power ratings ranging from around 70 to over 160 hp.

These engines are already used on several Fiat, Alfa Romeo and Jeep models, where they enjoy a reputation for greater reliability.

Italian engineering at the heart of Euro 7 strategy

This development is not only linked to the PureTech scandal. It is also part of the preparations for the future Euro 7 standard, which will require a major overhaul of internal combustion engines.

Adapting all the group's engine families would represent a considerable investment. In this context, Stellantis seems to have made a clear industrial choice: to concentrate its budgets on modernizing Italian FireFly engines, which will gradually be electrified with 48-volt mild-hybrid systems.

If confirmed, this would mark an interesting turnaround in the Group's history. When PSA and FCA merged in 2021, many believed that French technologies would dominate the new automotive giant's engine strategy.

A few years later, the situation could be reversed: Peugeot, Opel or Citroën could tomorrow be powered by engines originally designed by Fiat. A powerful symbol for Stellantis... and perhaps the last great evolution of the internal combustion engine in Europe before the electric transition.