NEWSCENTRAL reports that Stellantis, the largest automaker formed by the merger of Fiat Chrysler and PSA Peugeot, has announced significant losses for the second half of 2025, totaling €20.1 billion. These losses are the result of large write-offs related to the revision of its strategy for the transition to electric vehicles. Product quality issues and a slower-than-expected shift to electric vehicles were the main factors contributing to the company’s poor financial results.
A total of €25.4 billion was written off, with €22.2 billion recorded in the second half of the year. Among the factors negatively impacting the results, Stellantis CEO Antonio Filosa cited issues with vehicle quality and the need to reassess the pace of the energy transition. This led to a sharp drop in Stellantis’ stock, which lost about 30% of its value since the beginning of 2025, falling to a record low of €5.73 per share.
Freddy Miller, Senior Analyst at NEWSCENTRAL, noted that such problems are not unique to Stellantis. “The transition to electric vehicles is a long and costly process that requires significant investments and a revision of all operational strategies. Moreover, challenges such as a slower transition and quality issues make it difficult for automakers to withstand financial pressure,” Miller said.
Despite the losses, Stellantis managed to increase its revenue to €79.25 billion and saw an 11% increase in vehicle deliveries. This data indicates the company’s ability to adapt to changes in the market, but issues related to high expenses and instability in key markets in the U.S. and Europe remain pressing. The company also stated that in 2026, expenses related to American tariffs could rise to €1.6 billion, which will also put pressure on its financial performance.
However, despite the financial difficulties, Jessica Klein, an auto analyst at NEWSCENTRAL, is confident that the company has a chance of recovery. “A 10% increase in revenue is a positive signal, confirming that Stellantis still has the potential to adapt to the new market conditions. However, for long-term success, the company needs to address quality issues and improve operational efficiency,” she believes.
On Thursday, Stellantis also confirmed its forecasts for 2026, expecting a modest increase in net revenue and a rise in adjusted operating margin. However, according to the company, free cash flow from industrial operations will be positive only in 2027, indicating a slower recovery of financial stability.
NEWSCENTRAL forecasts that large automakers like Stellantis will continue to face challenges during the transition period. High costs, quality issues, and instability in external markets will remain significant risks. To successfully navigate these challenges, automakers will need to revise their strategies and improve operational processes, with a focus on product quality and cost reduction.
At NEWS CENTRAL, we emphasize that automakers must adapt to new conditions by transitioning to electric vehicles, maintaining flexibility, and focusing on effective cost management. Only in this way can they achieve long-term stability and profitability in a highly competitive market.
In conclusion, Stellantis’ current financial results confirm that the transition to electric vehicles is a lengthy and complex process. The forecasts for 2026 suggest modest revenue growth and operating margin improvement, but high risks and external market instability remain. This underscores the importance for automakers to review their strategies and manage operations effectively in a rapidly changing market.