Auto manufacturer Stellantis recently reported a historic net loss of €22.3 billion ($26.3 billion) for 2025, a stark contrast to its €5.5 billion profit the previous year. This significant downturn results from €25.4 billion in write-downs as the company shifts its strategy away from electric vehicles (EVs).
CEO Antonio Filosa reassured investors that North America is expected to be a strong growth area. He noted that new products and the increased production of popular trucks could drive profits. Filosa emphasized, “North America will be the largest contributor to Stellantis’ profitability.” Encouragingly, after this announcement, shares rose about 5% in both Milan and New York.
The automotive industry is experiencing a broader trend of revising EV strategies. Major companies like GM, Ford, and Honda have also reported similar financial setbacks linked to their EV investments, indicating a significant shift in the market landscape. For instance, a recent report highlighted that nearly 70% of automakers are reconsidering their EV timelines due to production challenges and consumer demand.
Filosa acknowledged the misjudgment in estimating the pace of energy transition. He stated their goal for 2026 is to streamline operations and focus on customer preferences, whether that means electric, hybrid, or traditional vehicles. Stellantis has paused its dividend payments for 2026 and is looking to issue up to €5 billion in hybrid bonds to strengthen its financial position.
In terms of performance, Stellantis reported consolidated shipments of 2.8 million units in the second half of 2025, with North America leading the charge. Overall, net revenues climbed 10% to €79.25 billion during this period, a sign of initial operational improvements and strong brand performance.
As the market continues to evolve, Stellantis plans to focus on sustainable strategies while navigating through significant changes in consumer preferences and regulatory pressures. While the current challenges are notable, the company aims to return to profitability with a clearer game plan for the future.
For more insights into Stellantis’ financial strategies and industry trends, you can visit the Stellantis press release.
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