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Stellantis will record approximately €22.2 billion ($26.32 billion) in charges in the second half of 2025 as it restructures operations and adjusts its electric vehicle (EV) strategy.
The group said the items, which are excluded from adjusted operating income (AOI), include about 6.5 billion euros of cash outflows over the next four years.
They stem from revised product roadmaps, a shortened electric vehicle supply chain and other operational measures.
Most of the charges – €14.7 billion – relate to changes in product plans and compliance with US emissions standards.
This includes 2,900 million euros of cancellations linked to abandoned projects and 6,000 million euros for deterioration of the platform.
Another €2.1 billion is related to battery capacity reductions, while €5.4 billion covers additional operational actions, such as a €4.1 billion increase in warranty provisions and €1.3 billion in restructuring costs, largely linked to job cuts in the enlarged Europe.
As part of its reset, the group reiterated a move towards offering hybrids and internal combustion vehicles alongside battery electric models and confirmed a number of steps taken during 2025.
These included a US$13 billion investment program over four years, the launch of 10 new vehicles and the completion of projects deemed unlikely to reach a profitable scale, including the planned Ram 1500 BEV.
Stellantis CEO Antonio Filosa commented: “The reset we 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 overestimating the pace of the energy transition that moved us away from the real needs, means and desires of many car buyers.”
New and revived models were announced across the Jeep, Ram, Dodge, Fiat and Citroen brands.
The company also revamped manufacturing and quality systems and hired more than 2,000 engineers last year, mostly in North America.
Early operational improvements were reported, with second-half 2025 shipments reaching 2.8 million vehicles, up 11% year-over-year, and US market share rising sequentially to 7.9%.
The group also noted falls of more than 50% in first-month vehicle breakdowns in North America and more than 30% in extended Europe from early 2025.
Preliminary results for the period showed estimated net income of €78-80 billion, a net loss of €19-21 billion and adjusted operating income of minus €1.2-1.5 billion.
The board decided not to distribute a dividend in 2026 after the loss in 2025 and approved the issuance of up to €5 billion in non-convertible subordinated perpetual hybrid bonds.
Looking ahead to 2026, Stellantis expects net income to increase in the mid-single digits, adjusted operating margin in the low single digits and year-over-year progress in industrial free cash flows.
