Stellantis closes 2025 with a €22.3 billion net loss

2025 ended deep in the red for Stellantis, which reported a net loss of €22.3 billion, weighed down by total write-downs of €25.4 billion linked to the revision of its electric vehicle strategy. The automotive group, headquartered in Amsterdam, is paying the price for a shift in the regulatory and market landscape in the United States, where demand for EVs has slowed significantly.

The multi-brand conglomerate - which includes Fiat, Opel, Peugeot, Chrysler, Alfa Romeo and Jeep - had already warned of significant impairments following the revision of incentives and emissions policies introduced under President Donald Trump. The new rules have particularly affected the North American market, historically the group’s most profitable thanks to strong demand for pickup trucks and SUVs.

Even excluding extraordinary items, operating performance came under pressure, with operating losses driven by intensifying price competition in both North America and Europe. A weaker demand environment and excess production capacity compressed margins, making industrial repositioning necessary.

The new Chief Executive Officer, Antonio Filosa, who took office in June, has launched a far-reaching restructuring expected to generate multi-billion-euro costs over several years. The plan includes scaling back certain electric models, strengthening the range of traditional combustion-engine and hybrid vehicles, and overhauling supply chains.

On the financial front, the group expects free cash flow in its automotive division to remain negative until 2027. This timeline reflects the scale of the ongoing transition and the need to realign investments and production capacity with a rapidly evolving market environment.

Andrea Pelucchi