Stellantis posts massive losses
Stellantis has posted a second-half net loss of €20.1 billion – or about NZ$37.7b – and an operating loss of €1.4b.
It means the company has finished its fiscal year in the red for the first time since it was formed in 2021.
Adjusted operating loss in the second half of was 1.7 per cent, at the upper range of guidance issued early last month when Stellantis warned investors it was taking tens of billions in write-downs, mostly because of overly optimistic projections of EV sales.
Antonio Filosa, pictured, chief executive officer, is unwinding many of the bets on electrification made by Carlos Tavares, his predecessor.
The write-downs have included impairments for cancelled or delayed models, such as the Ram 1500 BEV pick-up and Alfa Romeo EVs, scaling down its electric-car supply chain and revising warranty estimates linked to quality issues.
They also include about €6.5b in cash payments, expected to be spread across four years from 2026. All up, net loss was €22.3b for the year and operating loss came in at €842m.
Filosa says: “Our 2025 full-year results reflect overestimating the pace of the energy transition, and of the need to reset our business around customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies.”
He adds there were “initial, positive signs of progress” in the second half behind several key model launches. Net revenue was €79.2b for those those six months, a 10 per cent increase over the second half, and deliveries rose by 11 per cent.
Stellantis is forecasting a net-revenue increase of “mid-single digits” for 2026 with an operating margin in the low single digits. Filosa says: “Our focus will be on continuing to close execution gaps of the past, adding further momentum to our return to profitable growth.”
In Europe, the company reported an adjusted operating loss of €660 million in the second half, including costs related to Takata airbag recalls. This compared with an adjusted operating income of €359m in the same period of the previous fiscal year. Sales of brands including Peugeot, Fiat and Opel were essentially flat at 1.2m.
North America’s adjusted operating loss was €941m for an improvement of 6.8 per cent in the second half.
Stellantis’ difficulties reflect the broader issue of buyers’ appetite for EVs. Globally, marques are unwinding their EV bets at a cost approaching US$50b – or some NZ$86.3b. Write-downs include investments in EV factory capacity, vehicle programmes and battery manufacturing by General Motors, Ford, Honda and Porsche.
Filosa says Stellantis intends to maintain its structure as a global company after a sweeping review of its business with more details to be announced on May 21.
He is taking steps to stabilise the company, which suffered steep market-share declines under Tavares, who pushed for aggressive cost cuts. The efficiency drive and strategic missteps led to quality problems, gaps in the line-up and mispriced vehicles.
Stellantis was formed in the 2021 through the merger of Fiat Chrysler and France’s PSA Group to established a portfolio of 14 brands.
