Stellantis Lost $26.3 Billion Last Year, Says It’s Pivoting Back to Combustion Engines
Summary
Jeep's parent company faces challenges as the U.S. market shifts away from electric vehicles (EVs). This trend raises concerns about the future of the brand and its adaptation to changing consumer preferences in the automotive industry.
Key Insights
Why did Stellantis report a $26.3 billion loss in 2025 despite previous profits?
The loss stemmed primarily from €25.4 billion ($30 billion) in unusual one-time charges related to overestimating the pace of the EV transition, canceling EV models, high warranty costs, product mix issues, falling U.S. sales, and increased incentives, marking the company's first annual loss as a merged entity.[1][2][6]
What does Stellantis mean by pivoting back to combustion engines?
Stellantis is recalibrating its strategy by canceling several EV models, reintroducing high-margin internal combustion engine (ICE) options like the HEMI V8 in the Ram 1500 for North America, and adding diesel and mild-hybrid gasoline models in Europe to better match customer demand for a range of powertrains including ICE, hybrids, and EVs.[1][2]