Automaker Stellantis posts massive loss, pivots from EV

Troubled automaker Stellantis, behind brands like Jeep and Fiat, announced Thursday a net loss of 22.3 billion euros ($26.3 billion) for last year, blaming a lack of demand for electric vehicles. The group said earlier this month it would incur colossal charg…

Troubled automaker Stellantis, behind brands like Jeep and Fiat, announced Thursday a net loss of 22.3 billion euros ($26.3 billion) for last year, blaming a lack of demand for electric vehicles. The group said earlier this month it would incur colossal charges to finance a shift back to combustion engines and away from producing EVs after sales fell well below expectations. U.S. auto giants Ford and General Motors also recently announced multibillion-dollar write-downs as they pull back on EVs, a move sparked by President Donald Trump's scrapping of hefty subsidies.

Both the U.S. and the European Union have also relaxed targets on emissions after years of demanding cleaner vehicles. The huge losses at Stellantis also come amid boardroom chaos after CEO Carlos Tavares was ousted over disagreements about his premium-pricing strategy. He was replaced last July by Antonio Filosa, an Italian veteran of Fiat who immediately embarked on a management shake-up with a vow to restore profitability.

Stellantis' revenue fell only by two percent to 153.5 billion euros last year while its sales actually rose 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," said Filosa. He said there was now a need to "reset our business around our customers' freedom to choose from the full range of electric, hybrid and internal combustion technologies".

The group posted a current operating loss of 842 million euros last year and will not pay any dividend. In the second half of 2025, Stellantis saw a 10 percent increase in sales to 2.8 million vehicles, an 11 percent rise by volume, as U.S. sales rebounded. Filosa said he expected "further momentum to our return to profitable growth" this year, which the firm said would be driven by the arrival of new models, particularly combustion-engine pickups in the U.S.

The group predicted US tariffs would cost it 1.2 billion euros for 2025 and 1.6 billion for 2026, despite the U.S. Supreme Court's decision to strike down Trump's levies. Stellantis, formed in 2021 through a merger of France's PSA Group and Italian-American company Fiat-Chrysler, had in recent weeks confirmed its shift away from the EV sector. It sold its 49 percent stake in NextStar Energy, behind the development of Canada's first battery gigafactory, and is planning to exit a joint venture with Samsung to build two gigafactories in the U.S.

The group also announced it would relaunch combustion engine models in the U.S. and Europe, including diesel. Stellantis said those choices would not affect its broader commitment to electric. Skip the crowds. Enjoy tailor-made cultural journeys with our trusted licensed guides. Stellantis would do well to not overreact and go too far in the other direction, becoming overly dependent on V-8 combustion engines and high-performance muscle cars.

Stuff like that is fun, but that path leads to becoming a marginal, low-volume player in the industry. There is nothing wrong with electric vehicles. As long as they have an overhead power connection. The problem is that governments are pushing BATTERY electric vehicles that shlep a ton or more of lithium battery around and still have only a fraction of the reach of internal combustian engine, plus all their other disadvantages.

Electricity simply is not something that can be stored efficiently and safely. EVs are great to drive however, nobody likes to talk about their resale values. The 5 top depreciating vehicles in the UK are all EVs. All losing more than 65% of their value in 3 years. So the car you paid £100,000 for is only worth £35,000 three years later, if you can find a buyer. Now tell me EVs are cheap to run.

EVs are great… as golf carts, or as in-town grocery-getters. But anyone who believes they are "green" is deeply mistaken. The source of the electricity for charging the massive, toxic waste batteries is primarily the "evil" fossil fuels. Unless and until the EVs are charged solely from solar panels, it's akin to towing a diesel-electric generator to charge the battery, a self-defeating reality, mere virtue-signaling.

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