AMSTERDAM – Stellantis N.V. (“Stellantis” or “the Company”) today announced that as part of the reset of its business and as it prepares for the communication of its new strategic plan in May of this year, it has conducted a thorough assessment of its strategy and related costs required to align the Company with the real-world preferences of its customers.
Over the past five years Stellantis has become a leader in electric vehicles and will continue to be at the forefront of their development. That journey continues at a pace that needs to be governed by demand rather than command. Stellantis is committed to being a beacon for freedom of choice, including for those customers whose lifestyles and working requirements make the Company’s growing range of hybrid and advanced internal combustion engine vehicles the right solution for them.
Stellantis CEO Antonio Filosa commented: “The reset we have announced today is part of the decisive process we started in 2025, to once again make our customers and their preferences our guiding star. The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires. They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new Team.”
He added: “We have gone deep into every corner of our business and are making the necessary changes, mobilizing all the passion and ingenuity we have within Stellantis. The positive customer reception to our product actions in 2025 resulted in increased orders and a return to top-line growth. In 2026, our unwavering focus is on closing past execution gaps to add further momentum to these early signs of renewed growth. We look forward to sharing the full details of our new strategy at our Investor Day on May 21.”
Initial actions taken in 2025 to reset Stellantis and catalyze growth include:
- The announcement of the largest investment in Stellantis’ U.S. history:
- $13 billion of investment over the next 4 years to drive growth in the U.S.
- Introducing 5 new vehicles and initiating 19 other product actions
- Adding more than 5,000 jobs and increasing U.S. manufacturing capacity utilization
- Launching 10 all-new products in 2025, and expanding powertrain choices, including:
- Returning the iconic HEMI® V-8 to the Ram 1500
- Returning the Jeep® Cherokee and introducing the next generation Jeep® Compass
- Introducing the Dodge Charger SIXPACK two-door
- Introducing the Fiat Grande Panda and Fiat 500 Hybrid
- Introducing the Citroën C3 Aircross and C5 Aircross
- The cancellation of products that will be unable to achieve profitable scale, including the previously planned Ram 1500 BEV, recognizing both the need to align with customer demand and the changes to U.S. regulatory frameworks.
- A thorough reorganization of the Company’s global manufacturing and quality management processes. In this context, the Company hired over 2,000 engineers during 2025, mainly in North America.
Decisive organizational changes made include the re-empowerment of regional teams, freeing them to make decisions based on their direct knowledge of the preferences of the customers they serve. The Company has also moved to create a more cost-efficient supply chain to support the long-term development of Stellantis’ electrified vehicle programs. The important product actions taken during 2025, which continue to roll out in 2026, and the disciplined allocation of capital to support these, reflect the new team’s determination to drive profitable growth.
Early Benefits of Actions Taken in 2025
The effectiveness of these initial measures is evidenced by Stellantis’ return to positive volume growth. H2 2025 Consolidated Shipment volume of 2.8 million units increased by 277 thousand, or +11% year-over-year. North America contributed most strongly to the growth (+39%), benefiting from both improved inventory management and higher sales, while Enlarged Europe, South America, Middle East & Africa, and China and India & Asia Pacific each also contributed year-over-year volume gains.
Market share in the U.S. at 7.9% for H2 2025 was 60 basis points higher sequentially. In Enlarged Europe, Stellantis retained its overall #2 market share position and was also the leader in the all-hybrids segment, in the passenger car B-segment and in the LCV market. Customer order intake in Enlarged Europe increased throughout the year, with notable acceleration in H2 2025 (+13% y-o-y) with Q4 2025 orders up 23% y-o-y.
The renewed focus, improved methods and enlarged engineering staff committed to quality management are already seeing encouraging early results. For example, the number of issues reported for vehicles in their first month of service decreased over 50% in North America, and over 30% in Enlarged Europe since the beginning of 2025.
This reset of Stellantis’ business resulted in charges of approximately €22.2 billion, excluded from AOI, for the second half of 2025, including cash payments of approximately €6.5 billion, which are expected to be paid over the next four years.
1. €14.7 billion related to re-aligning product plans with customer preferences and new emission regulations in the U.S., largely reflecting significantly reduced expectations for BEV products:
- Includes write-offs related to cancelled products of €2.9 billion and impairment of platforms of €6.0 billion, primarily due to significantly reduced volume and profitability expectations.
- Includes approximately €5.8 billion in projected cash payments over the next four years, relating to both cancelled products as well as other ongoing BEV products whose volumes are now expected to be considerably below prior projections.
2. €2.1 billion related to the resizing of the EV supply chain:
- €2.1 billion of charges, including a total of approximately €0.7 billion in cash payments expected to be paid over the next four years, related to steps of rationalizing battery manufacturing capacity.
3. €5.4 billion related to other changes in the Company’s operations:
- €4.1 billion due to a change in estimate for contractual warranty provision, resulting from the reassessment of the estimation process, taking into account recent increases in cost inflation and a deterioration in quality, as a result of operational choices, which did not deliver the expected quality performance, now being reversed by the new management team.
- €1.3 billion of other charges, including restructuring primarily related to already communicated workforce reductions in Enlarged Europe.
The Company has taken the vast majority of decisions required to correct direction, particularly related to aligning our product plans and portfolio with market demand, which are reflected in the amounts accrued.
Preliminary financial information for the Second Half 2025(1): Second half 2025 Net revenues and Industrial free cash flows improved compared to the first half of 2025, consistent with the Company’s latest financial guidance. However, results were negatively impacted by specific items, including the change in estimate for contractual warranties, and other items, resulting in AOI margin for the second half of 2025 finishing below the guided low-single digit range.
