Troubled automaker Stellantis, the parent company of brands such as Jeep and Fiat, has announced a net loss of 22.3 billion euros ($26.3 billion) for last year, citing weaker-than-expected demand for electric vehicles (EVs).
The group said earlier this month it would incur significant charges to finance a strategic shift back to combustion engines, after EV sales fell well below expectations.
The setback comes as major US automakers, including Ford Motor Company and General Motors, also reported multibillion-dollar write-downs while scaling back EV investments. The pullback follows policy changes under President Donald Trump, including the scrapping of generous EV subsidies.
Both the United States and the European Union have recently eased emissions targets after years of pushing for cleaner vehicles, further reshaping the automotive landscape.
Stellantis’ losses also coincide with internal leadership upheaval. Former Chief Executive Officer Carlos Tavares was ousted amid disagreements over his premium-pricing strategy. He was replaced last July by Antonio Filosa, an Italian executive and longtime Fiat veteran, who has since initiated a management shake-up aimed at restoring profitability.
Despite the massive net loss, Stellantis’ revenue dipped only two percent to 153.5 billion euros. Sales volumes increased from 5.41 million vehicles in 2024 to 5.48 million last year.
“Our 2025 full-year results reflect the cost of over-estimating the pace of the energy transition,” Filosa said.
He added that the company must “reset our business around our customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies.”
The group recorded a current operating loss of 842 million euros and confirmed it would not pay a dividend.
In the second half of 2025, Stellantis reported a 10 percent increase in sales to 2.8 million vehicles, alongside an 11 percent rise in volumes, driven largely by a rebound in US demand. Filosa expressed optimism about “further momentum” in returning to profitable growth this year, supported by new model launches, particularly combustion-engine pickup trucks in the US market.
The automaker also projected that US tariffs would cost it 1.2 billion euros in 2025 and 1.6 billion euros in 2026, despite a ruling by the Supreme Court of the United States striking down certain levies.
Formed in 2021 through the merger of France’s PSA Group and Italian-American automaker Fiat Chrysler Automobiles, Stellantis has recently confirmed its shift away from aggressive EV expansion.
The company sold its 49 percent stake in NextStar Energy, which is developing Canada’s first battery gigafactory, and plans to exit a joint venture with Samsung to build two US-based gigafactories.
Stellantis also announced plans to relaunch combustion engine models in the US and Europe, including diesel variants, while maintaining that the strategic recalibration does not signal a complete retreat from its broader electric mobility commitments.
