Stellantis Reports $26.3 Billion Loss, Shifts Focus to Combustion Engines

Stellantis, the parent company of renowned brands such as Jeep, Ram, and Alfa Romeo, has announced a staggering net loss of $26.3 billion (€22.3 billion) for the fiscal year 2025. This financial setback reflects the sustained impact of challenging sales and a bold shift towards electric vehicle (EV) strategies amid changing regulatory landscapes. The sizeable loss primarily stemmed from $29.9 billion (€25.4 billion) in “unusual charges,” which have severely hampered the company’s fiscal outlook.

Decline in Revenues

The company’s net revenues slipped by 2% from the previous year, totaling $180.8 billion (€153.5 billion). CEO Antonio Filosa, who took the helm in June 2025, attributed these results to an overestimation of the energy transition’s pace and the company’s need to adapt its business model according to diverse customer preferences for electric, hybrid, and internal combustion technologies.

Challenges in Sales

The year was marked by a 3% decline in U.S. sales, a trend mostly remedied by a rise in the demand for gas-powered vehicles, particularly minivans, trucks, and SUVs during the latter half of the year. Electric models such as the all-electric Jeep Wagoneer S only sold around 11,000 units, far trailing the 210,000 sales of the Grand Cherokee. In addition, the electric Dodge Charger managed to sell a modest 7,400 units, while gas-powered Chargers sold 2,100 units, with the latter ceasing production in 2023.

Strategic Adjustments for 2026

In light of disappointing electric vehicle sales, Stellantis is re-evaluating its offerings. Reports indicate that none of the Chrysler or Jeep plug-in hybrids will return for 2026, including the previously popular Jeep Wrangler 4xe and the Chrysler Pacifica Hybrid minivan. Meanwhile, the Fiat 500e saw only 1,100 sales, leading to a shift towards gasoline variants.

• The redesigned 2025 Ram 1500 pickup truck will now include a missing eight-cylinder engine option for 2026.
• The Charger lineup will also receive a turbocharged six-cylinder gasoline engine.
• Stellantis has announced that the all-electric Ram pickup truck is discontinued and will be replaced by a gasoline-powered version acting as a generator.

Response to Market Trends

Stellantis is not alone in retreating from an aggressive EV-focused strategy. Industry giants like Ford and General Motors have also faced significant write-downs and appear to be pivoting back towards internal combustion engine technologies. The expiration of the EV tax credit in late 2024 has also negatively influenced market dynamics, leaving many consumers leaning towards gas-powered vehicles.

Despite the challenges, Stellantis anticipates a “mid-single-digit percent” increase in net revenues for the full year 2026 as it aims to recalibrate its strategy in response to customer demands and evolving market conditions.