Stellar lost up to 21 billion euros (A$35 billion) in the second half of 2025, mainly due to 22.2 billion euros (A$37.4 billion) in costs related to the company’s less than successful push into electric vehicles (EV) in the US.
The write-off includes payments to laid-off employees, the scaleback of battery production and reduced volume expectations for the company’s remaining electric vehicles.
There is also €5.4 billion earmarked for a “contractual warranty provision” which “takes into account the recent increase in cost inflation and a deterioration in quality”, which is “now being reversed by the new management team”.
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Since the company has slipped into the red, Stellantis has suspended dividend distributions for 2026. Stock markets have not responded well to the loss: the company’s shares fell 24 percent from $9.54 before the announcement to $7.28 at the time of writing.
CEO Antonio Filosa called the writedown a necessary part of a “reboot” that will see the automaker “make our customers and their preferences our guiding star again.”
He blamed the massive loss on “the overestimation of the pace of the energy transition, which has distanced us from the real needs, means and wishes of many car buyers,” as well as the “previous poor operational implementation.”
In 2021, then-CEO Carlos Tavares announced an ambitious €30 billion electric vehicle program for both the European and American branches of the newly formed French-Italian-American automaker.
For the US, the company planned to launch a new electric muscle car, an electric Ram 1500 pickup and an electric midsize ute within a few years. Under this plan, the Euro-focused Opel/Vauxhall brands would stop using internal combustion engines by 2028.
After Mr. Tavares resigned in 2024 and Antonio Filosa took over in mid-2025, Stellantis changed course. V8 engines were reintroduced in the Ram 1500, then the long-delayed EV variant of the pickup was eliminated.
The company has also pulled its Jeep and Chrysler plug-in hybrids from the market due to declining demand and possibly an unresolved fire recall. With plug-in hybrids now gone from the North American lineup, the company is focusing on longer-range electric vehicles, including one for the Ram 1500 ute.
In Europe, the company offers electric powertrains for many popular models, but in North America the selection is limited to the Dodge Charger and Jeep Wagoneer S, as well as the upcoming Jeep Recon.
Accordingly Good car, bad carOnly 6,701 examples of the Wagoneer S were sold in the United States last year. The company managed to sell just 4,645 electric Dodge Chargers in all of 2025, while the six-cylinder version, which was only available at the end of the year, recorded 4,916 sales.
For comparison: Ford sold 45,333 copies of the four- and eight-cylinder Mustang in the USA in 2025.
MORE: Explore the Ram showroom | Jeep showroom
