Stellantis Reports Major Loss Following Electric Vehicle Strategy Retreat
Stellantis NV, the multinational automotive manufacturer behind iconic brands like Jeep and Peugeot, has swung to a substantial loss in the second half of last year. The company reported an adjusted operating loss of €1.38 billion (approximately US$1.6 billion) for the six-month period through December, with the bulk of this negative result directly tied to its North American operations.
North American Operations Drive Losses
The automaker disclosed that losses in North America alone amounted to €941 million during this period. This disappointing performance comes as Stellantis has been scaling back its previously ambitious electric vehicle push, a strategic retreat that has triggered a wave of impairments and charges across the company's global operations.
Citi analyst Harald Hendriske noted in a research report that the results "disappoint in all key regions" and suggested that "Stellantis needs a more ambitious cost plan than we have been shown so far."
Strategic Reset of EV Plans
Earlier this month, Stellantis reset its electric vehicle strategy after facing disappointing demand in Europe and the removal of incentives in the United States. This strategic adjustment represents part of a broader push to regain market share in both the U.S. and European markets, where some automakers have been resurrecting traditional gasoline-powered models.
The company's total impairments ballooned to €25.4 billion last year, with the majority concentrated during the second half. The record charges detailed on February 6 prompted Stellantis to shed approximately a quarter of its market value.
Regional Performance and Market Response
In Europe, Stellantis reported an adjusted operating loss of €660 million, which included costs related to the Takata airbag recall campaign. This compares unfavorably to an adjusted operating income of €359 million in the same period the previous year. Vehicle sales for brands including Peugeot, Fiat, and Opel remained essentially flat at 1.2 million units.
Despite the losses, Stellantis has seen some positive developments. The company reported that volumes improved, led by North America where deliveries gained 39 percent to reach 825,000 vehicles. The shares traded in Milan showed little change following the announcement, though the stock has declined 31 percent so far this year.
Leadership Comments and Future Outlook
Chief Executive Antonio Filosa noted in a statement that the second half of the year showed "initial, positive signs" from efforts to improve quality and launch new models. The company indicated that pricing trends this year, outside of hyper-inflationary countries, are likely to be "neutral to nominally positive."
Stellantis reiterated its 2026 guidance, targeting a mid-single digit percentage increase in net revenues and a "low-single-digit" adjusted operating income margin for the current year. The company continues to estimate €1.6 billion in net tariff expenses for 2026.
Strategic Initiatives and Market Positioning
To maintain momentum in the crucial U.S. market, Stellantis plans to continue introducing limited edition versions of its popular Jeep Wrangler model. The company will launch one new limited-edition version on the 12th day of each month for twelve consecutive months as part of this marketing initiative.
The strategic reset represents a significant unwinding of ambitious bets on electric vehicles made under previous leadership, while also downsizing plans for battery manufacturing capacity. As the automotive industry continues to navigate the transition to electric vehicles, Stellantis faces the challenge of balancing innovation with financial sustainability in an increasingly competitive global market.
