Published:
Readtime: 4 min
Every product is carefully selected by our editors and experts. If you buy from a link, we may earn a commission. Learn more. For more information on how we test products, click here.
- Stellantis reports a €22 billion loss following a major reset in its electric vehicle strategy.
- CEO Antonio Filosa is shifting focus from EVs back to customer preferences.
- Previous plans for electric Ram utes and muscle cars have been cancelled.
- The company will invest USD$13 billion into U.S. manufacturing and new jobs.
- V8 engines will return to the Ram 1500 as part of the growth.
It’s not a great time to be selling EVs, but that’s especially true if you’re not one of the dozen or so Chinese manufacturers in global markets. European brands like BMW have found a way forward with cost-effective, Chinese-made alternatives. But the expedited transition to an all-electric future has come back to bite even premium brands like Mercedes-Benz and those under the Stellantis umbrella.
Brands like RAM, Alfa Romeo, Jeep, and Chrysler have a reason to be excited about the future, as they slow their transition to EVs and PHEVs in the USA market, which has been stalling their growth. However, the short-term financial pain will be felt deeply. The brand has lost up to €22 billion (AUD$35 billion) in the second half of 2025, but CEO Antonio Filosa said the write-off was a necessary part of a “reset” to hopefully see the brand “once again make our customers and their preferences our guiding star.”
The reset button has been firmly pressed after former CEO Carlos Tavares announced a €30 billion EV program (2021) for the European and American arms of the business. Originally, the automaker planned to launch a new electric muscle car, an electric Ram 1500, and an electric mid-size ute. Those plans were axed by the new CEO, and his first project was reintroducing V8 engines to the Ram 1500.
It’s unfair to say that the EV move was a mistake, as the brand has found some success in European markets. However, the new CEO wants to focus heavily on the US market over the next four years.
“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,” said Stellantis CEO Antonio Filosa. “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.”
“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.”
Stellantis announced USD$13 billion in investment over the next four years to drive growth in the U.S., including five new vehicles and 19 other product actions.
This investment will add more than 5,000 jobs and increase U.S. manufacturing capacity utilisation. Most importantly, it acknowledged the need for an enhanced quality management process. They hired over 2,000 engineers during 2025, mainly in North America, to oversee this change.
The good news for Stellantis is that it’s had a positive effect early, with H2 2025 Consolidated Shipment volume increasing by 277,000 (+11% year-over-year). Its key market, North America, contributed most strongly to growth (+39%), driven by improved inventory management and higher sales. Close to home, Europe, South America, the Middle East & Africa, and China and India & Asia Pacific also contributed year-over-year volume gains.
Full details of the new Stellantis strategy will be shared at the brand’s Investor Day on May 21, 2026.
Comments
We love hearing from you. or to leave a comment.