What structural challenges does Stellantis face in transitioning its global portfolio to electric vehicles, and how might its 2025 financial outcomes signal broader industry realignment?
Stellantis's €22.3 billion net loss in 2025 represents one of the most dramatic financial collapses in automotive history, driven by a convergence of structural miscalculations in electric vehicle strategy, platform consolidation failures, quality deterioration, and regulatory pressureAuto giant Stellantis posts first-ever annual loss after EV writedownscnbc +1. However, this outcome is not isolated—it signals a broader industry reckoning as legacy automakers confront the gap between EV transition aspirations and market realities.
The write-downs Stellantis recorded break down into three primary categories that illuminate the structural nature of their challengesStellantis Resets its Business to Meet Customer Preferences and to Support Profitable Growth | Stellantisstellantis :
Product Plan Realignment (€14.7 billion): This includes €2.9 billion in write-offs for cancelled products, €6.0 billion in platform impairments due to reduced volume expectations, and approximately €5.8 billion in projected cash payments over four years related to both cancelled and scaled-back BEV productsStellantis Resets its Business to Meet Customer Preferences and to Support Profitable Growth | Stellantisstellantis . The cancellation of the Ram 1500 BEV exemplifies the strategic retreat from pure-electric strategies in segments where customer demand failed to materializeStellantis posts $26.3 billion loss in 2025, blames EV shake-upfreep .
EV Supply Chain Resizing (€2.1 billion): This reflects the cost of rationalizing battery manufacturing capacity, including approximately €0.7 billion in cash payments expected over four yearsStellantis Resets its Business to Meet Customer Preferences and to Support Profitable Growth | Stellantisstellantis . The most striking symbol of this unwinding came when Stellantis sold its 49% stake in the NextStar battery joint venture in Canada—a facility that received over C$5 billion in investment—to LG Energy Solution for just $100LG Energy Solution bought NextStar Energy for $100.substack .
Operational and Quality Failures (€5.4 billion): This includes a €4.1 billion change in warranty provision estimates resulting from "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"Stellantis Resets its Business to Meet Customer Preferences and to Support Profitable Growth | Stellantisstellantis . An additional €1.3 billion covers restructuring costs, primarily workforce reductions in EuropeStellantis Resets its Business to Meet Customer Preferences and to Support Profitable Growth | Stellantisstellantis .
Stellantis's "Dare Forward 2030" strategy aimed to migrate its 14 brands onto four unified STLA modular platforms (STLA Small, Medium, Large, and Frame), promising economies of scale and manufacturing efficiencyStellantis CEO Carlos Tavares to retire in 2026 as automaker struggles in North Americacnbc . However, the execution has encountered significant delays:
The STLA Large platform, intended for premium products at the Cassino plant, has experienced accumulating delays affecting the Alfa Romeo Stelvio (deferred from 2025) and the next-generation GiuliaStellantis: problems with the STLA Small platform could delay Peugeot, Opel... and Alfa Romeo models! - ItalPassionitalpassion . The STLA Small platform has similarly encountered problems that could delay multiple Peugeot, Opel, and Alfa Romeo modelsStellantis: problems with the STLA Small platform could delay Peugeot, Opel... and Alfa Romeo models! - ItalPassionitalpassion .
The Brampton Assembly Plant in Canada, designated for the next-generation Jeep Compass on the STLA Medium platform, saw all retooling work paused as Stellantis reevaluates its strategy amid "dynamic environment" conditionsStellantis halts Brampton plant operations amid Jeep Compass production reassessmentcbtnews +1. The Ram all-electric pickup was delayed from late 2024 to the first half of 2025, with former CEO Carlos Tavares citing a "significant amount of workload" and the need for proper validationStellantis delays Ram electric pickup truck until 2025 - CNBCcnbc .
Stellantis registered 1,892,556 vehicles in Europe in full-year 2025, a 3.9% decline from 2024, resulting in a market share of approximately 14.3%—down nearly a percentage point from the prior year2025 (Full Year) Europe: Best-Selling Car Manufacturers and Brands - Car Sales Statisticsbest-selling-cars . While Stellantis claims a 16% share when including commercial vehicles, the passenger car performance reveals structural weaknessWith over 2.4 million registrations and a 16% market share, Stellantis closes 2025 as the second-largest OEM in the EU30 automotive market | Corporate Communications | Stellantis Mediastellantis .
The brand-level performance is concerning:
In European EV sales specifically, Stellantis brands ranked poorly: Peugeot ranked 13th, Citroën ranked 16th, Opel ranked 19th, and the Leapmotor partnership ranked only 24thThe internet is convinced “diesel is back” and “diesel is the future” after seeing a few headlines, and making up their own stories. You can tell a lot about a company by how it reacts when the market moves on without them. Stellantis are the first legacy car maker to accept that they have got it wrong, and have given up. In 2025, Battery Electric Vehicles made up 19.5% of all car sales in Europe, up 4.1% year-on-year, and will grow again throughout 2026. But here’s the interesting part👇🏼 If you look at the top 25 best-selling BEVs across Europe, only ONE Stellantis vehicle made the list. The Citroën e-C3, which is their budget EV. When you zoom out to brand performance across EV sales: • Peugeot ranked 13th • Citroën ranked 16th • Opel ranked 19th • Leapmotor ranked 24th Meanwhile, they were comfortably outsold by Volkswagen Group brands like Skoda & Audi, Tesla, and even BMW, which wasn’t far behind the entire Stellantis portfolio combined. So you’d expect the reaction here to be “let’s build better electric cars.” Instead, Stellantis has quietly reintroduced diesel versions of some of its most popular models like the Peugeot 308 and DS No.4. This is despite diesel making up just 7.7% of the European market in 2025 (and falling), and just 5.33% in the UK. We are literally watching legacy manufacturers try to re-enter a shrinking market, rather than compete in the one that’s growing, because they have accepted that they can’t. Demand for electrification isn’t slowing down, but some boardrooms clearly haven’t figured that out yet. Build better EVs or get left behind, like Stellantis.x . These brands were "comfortably outsold by Volkswagen Group brands like Skoda & Audi, Tesla, and even BMW"The internet is convinced “diesel is back” and “diesel is the future” after seeing a few headlines, and making up their own stories. You can tell a lot about a company by how it reacts when the market moves on without them. Stellantis are the first legacy car maker to accept that they have got it wrong, and have given up. In 2025, Battery Electric Vehicles made up 19.5% of all car sales in Europe, up 4.1% year-on-year, and will grow again throughout 2026. But here’s the interesting part👇🏼 If you look at the top 25 best-selling BEVs across Europe, only ONE Stellantis vehicle made the list. The Citroën e-C3, which is their budget EV. When you zoom out to brand performance across EV sales: • Peugeot ranked 13th • Citroën ranked 16th • Opel ranked 19th • Leapmotor ranked 24th Meanwhile, they were comfortably outsold by Volkswagen Group brands like Skoda & Audi, Tesla, and even BMW, which wasn’t far behind the entire Stellantis portfolio combined. So you’d expect the reaction here to be “let’s build better electric cars.” Instead, Stellantis has quietly reintroduced diesel versions of some of its most popular models like the Peugeot 308 and DS No.4. This is despite diesel making up just 7.7% of the European market in 2025 (and falling), and just 5.33% in the UK. We are literally watching legacy manufacturers try to re-enter a shrinking market, rather than compete in the one that’s growing, because they have accepted that they can’t. Demand for electrification isn’t slowing down, but some boardrooms clearly haven’t figured that out yet. Build better EVs or get left behind, like Stellantis.x .
North America, traditionally Stellantis's most profitable market, has experienced seven consecutive years of declining U.S. salesStellantis reports first annual loss after massive EV chargesdetroitnews . The region posted a negative 3.1% operating profit margin in 2025, down from 4.2% in 2024 and 15.4% in 2023—its first regional loss since Stellantis's formation in 2021Stellantis says no 2025 profit sharing checks for its US autoworkers. Here's whygmtoday .
The deterioration has been dramatic: "In 2019, Stellantis controlled almost 20% of the US market. Today, it's barely 11%. That's losing one out of every three customers in just six years"Dealer REVOLT! Jeep, Ram, Dodge and in CRISIS!youtube . In Q2 2025, Ram trucks were down 26%, Jeep down 19%, and Dodge down 17.7% year-over-yearDodge, RAM & Jeep Will Be SHUT DOWN! Government Is PISSED!youtube . The U.S. market share fell to approximately 7% in Q2 2025, with Honda achieving a higher market share than Stellantis in 2024What is Competitive Landscape of Stellantis Company? – Pestel-analysis.compestel-analysis .
Beyond EV transition challenges, Stellantis has faced severe dealer relationship problems that compound their structural difficulties. Dealers were forced to carry 147 days of inventory when the industry average was 67 daysDealer REVOLT! Jeep, Ram, Dodge and in CRISIS!youtube . Specific models showed alarming inventory levels:
The Dodge Hornet plug-in hybrid exemplified the inventory crisis: 82.1% of total 2024 inventory remained on dealer lots when the industry average for 2024 models was just 0.4%STELLANTIS CRISIS! MASSIVE Inventory of Cars They CAN'T SELL! (What Now?)youtube . MSRPs were priced 15-20% above competitors, while incentives lagged $3,000-$5,000 behind Ford and GMDealer REVOLT! Jeep, Ram, Dodge and in CRISIS!youtube .
Stellantis reduced U.S. inventory by over 100,000 units through aggressive consumer discounts, bringing dealer inventory below 330,000 unitsStellantis Cuts U.S. Inventory by 100,000 Units - MoparInsidersmoparinsiders . However, this came at significant cost to margins, with one dealer characterizing 2025 as "a debacle. Literally, bleeding market share left and right. The supply of inventory on our lots is ridiculous. Dealers are drowning in expenses"Why factory workers getting $0 from at Stellantissubstack .
The €4.1 billion warranty provision increase reflects quality problems that CEO Antonio Filosa explicitly attributed to his predecessor's cost-cutting regimeStellantis Cancels 2025 Dividend After Reining In EV Developmentforbes . Warranty claims were up nearly 50% year-over-yearDealer REVOLT! Jeep, Ram, Dodge and in CRISIS!youtube .
Several European brands—Peugeot, Citroën, and Opel—have been affected by camshaft-chain and timing-belt issues in diesel and "PureTech" petrol modelsJeep Owner Stellantis Has a $17 Billion Problem on Warranties - Bloombergbloomberg . In North America, over 300,000 Jeep Wrangler 4xe and Grand Cherokee 4xe plug-in hybrids were recalled due to battery fire risks, with some vehicles subject to separate recalls for engine contamination by sandJeep Owner Stellantis Has a $17 Billion Problem on Warranties - Bloombergbloomberg .
Under new management, reported issues during the first month of vehicle service declined by more than 50% in North America and by over 30% in Enlarged Europe since the beginning of 2025Full Year 2025 Results - Stellantis.comstellantis .
Stellantis's €22.3 billion loss is the largest among traditional automakers, but it exists within a broader pattern of EV-related write-downs totaling approximately $50 billion across major manufacturersThe Car World Is Going Electric, Without America. "When it comes to electrics, Detroit was in denial for too long. Then it panicked and launched a flurry of flawed initiatives and hurried Hail Marys. That knee-jerk reaction is now costing the automaker - and America – a fortune. In December 2025, Ford announced a $19.5 billion write down on its electric vehicle investments, one of the largest charges in corporate history. Ford killed the F-150 Lightning, the electric truck executives not too long ago compared tot he Model T. Days later, General Motors disclosed a $6 billion charge of tis own, Just last week, Stellantis, owner of the Jeep, Dodge and Chrysler brands, announced its own colossal hit, taking a $26.5 billion dollar write down on its EV investments. In total, that is 50 billion dollars gone." How did we get here? Read my compete piece is The Free Press, today. https://t.co/xAlgahncUHx :
Ford: Announced a $19.5 billion write-down on EV investments in December 2025, one of the largest charges in corporate history, discontinuing the F-150 Lightning pickupThe Car World Is Going Electric, Without America. "When it comes to electrics, Detroit was in denial for too long. Then it panicked and launched a flurry of flawed initiatives and hurried Hail Marys. That knee-jerk reaction is now costing the automaker - and America – a fortune. In December 2025, Ford announced a $19.5 billion write down on its electric vehicle investments, one of the largest charges in corporate history. Ford killed the F-150 Lightning, the electric truck executives not too long ago compared tot he Model T. Days later, General Motors disclosed a $6 billion charge of tis own, Just last week, Stellantis, owner of the Jeep, Dodge and Chrysler brands, announced its own colossal hit, taking a $26.5 billion dollar write down on its EV investments. In total, that is 50 billion dollars gone." How did we get here? Read my compete piece is The Free Press, today. https://t.co/xAlgahncUHx +1. Ford's EV division (Model e) lost $5.08 billion in 2024 and projects losses of $5.5 billion for 2025, with breakeven targeted for 2029Ford EV Unit Seen Facing Multi-Billion-Dollar Losses Through 2026 With Breakeven Targeted for 2029 - TipRanks.comtipranks +1.
General Motors: Disclosed $7.1 billion in special charges for Q4 2025, with $6 billion related to EV plan changesNEWS: General Motors has announced that it will record $7.1 billion in special charges for Q4 2025 related to its pullback in electric vehicles and restructuring efforts in China. $6 billion is related to changes to its EV plan. GM: “We continue to believe that there is a strong future for electric vehicles, and we’ve got a great portfolio to be competitive, but we do have some structural changes that we need to do to make sure that we lower the cost of producing those vehicles,” GM CFO Paul Jacobson said.x . GM reported a 55% decline in net income for 2025, from $6 billion to $2.7 billionGM's net income falls by $3.3B in 2025 on EV-related ...wardsauto .
Volkswagen: Faces an €11 billion cash shortfall, with operating profit down 33% and negative cash flow of €1.4 billion in its 2025 half-year reportVolkswagen Group is €11 billion short next year, and lacks funds to produce new car models. Volkswagen half-year report for 2025 showed operating profit down 33% from a year earlier and a negative cash flow of €1.4 billion. VW plans deep cuts, asset sales, and leadership changes.x . Porsche warned of a writedown in VW of up to €20 billionClose to a hockey stick: China EV demand. 2020: 1.3 million 2025: 13.4 million "Beijing’s official target for EVs to account for 50 per cent of car sales by 2035, will be achieved 10 years ahead of schedule." Putting serious pressure on global automakers who had previously counted on China as a profit machine. • GM wrote down > $5bn of its business value in China • Porsche warned of a writedown in VW of up to €20bn • Nissan and Honda responded to a “drastically changing business environment” with a merger.x .
The pattern reveals a structural phenomenon. As one analyst summarized: "When it comes to electrics, Detroit was in denial for too long. Then it panicked and launched a flurry of flawed initiatives and hurried Hail Marys. That knee-jerk reaction is now costing the automaker—and America—a fortune"The Car World Is Going Electric, Without America. "When it comes to electrics, Detroit was in denial for too long. Then it panicked and launched a flurry of flawed initiatives and hurried Hail Marys. That knee-jerk reaction is now costing the automaker - and America – a fortune. In December 2025, Ford announced a $19.5 billion write down on its electric vehicle investments, one of the largest charges in corporate history. Ford killed the F-150 Lightning, the electric truck executives not too long ago compared tot he Model T. Days later, General Motors disclosed a $6 billion charge of tis own, Just last week, Stellantis, owner of the Jeep, Dodge and Chrysler brands, announced its own colossal hit, taking a $26.5 billion dollar write down on its EV investments. In total, that is 50 billion dollars gone." How did we get here? Read my compete piece is The Free Press, today. https://t.co/xAlgahncUHx .
European automakers face an estimated €16 billion in industry-wide penalties if their fleets do not meet 2025 CO2 limitsPenalty relief for 2025 for cars and vans: why it matters and what's at ...acea . For Stellantis specifically, potential fines could reach €2.5 billion over three yearsStellantis warns of FACTORY CLOSURES amid EU’s crippling EV finesnaturalnews .
The EU's 2025 target requires an average fleet emission of 93.6g CO2/km—a 15% reduction from the 2021 baselineWhat is the EU CO2 target for 2025? - Autovista24autovistagroup . Non-compliance triggers penalties of €95 per gram per kilometer exceeded, per vehicle soldCars and vans - Climate Action - European Commissioneuropa . Under compliance strategies, automakers must either:
In response, the EU granted partial relief in June 2025, allowing compliance based on average emissions over 2025-2027 rather than annuallyCars and vans - Climate Action - European Commissioneuropa +1. Stellantis has joined a Tesla-managed CO2 pooling arrangement that includes Toyota, Ford, Mazda, and Subaru, covering nearly 30% of European salesTesla, Volvo poised to gain as CO2 emissions alliances rapidly form to avoid EU finesyahoo . This pool also includes Stellantis's Chinese partner LeapmotorTesla, Volvo poised to gain as CO2 emissions alliances rapidly form to avoid EU finesyahoo .
Chinese automakers now dominate global EV production and are rapidly gaining market share:
Manufacturer | Country | Deliveries (Jan-Aug 2025) | YoY Growth | Market Share | |
|---|---|---|---|---|---|
| BYD | China | 2.6M | 14% | 19.9% | |
| Geely | China | 1.3M | 68% | 10.2% | |
| Tesla | U.S. | 985K | -11% | 7.7% | |
| Volkswagen | Germany | 854K | 42% | 6.7% | |
| SAIC | China | 720K | 28% | 5.6% | |
| Stellantis | Netherlands | 342K | 3% | 2.7% |
The World's Top EV Makers by Market Share - Visual Capitalistvisualcapitalist
The top five Chinese automakers now control 43% of the global EV marketThe World's Top EV Makers by Market Share - Visual Capitalistvisualcapitalist . BYD increased European sales by 268.6% in 20252025 (Full Year) Europe: Best-Selling Car Manufacturers and Brands - Car Sales Statisticsbest-selling-cars , while Chinese average battery cell prices are over 30% lower than in Europe and over 20% lower than in the United StatesExecutive summary – What Next for the Global Car Industryiea .
Stellantis's €1.5 billion investment for approximately 20% of Leapmotor, plus a 51/49 Stellantis-led joint venture (Leapmotor International) for sales outside Greater China, represents an attempt to access competitive Chinese EV technologyStellantis Makes Strategic Investment In Leapmotor, Reveals Affordable EV For Europecleantechnica .
Leapmotor sold 596,555 vehicles worldwide in 2025, doubling from the prior year, with a target of one million vehicles in 2026Stellantis Reports 6% Drop in European Sales for 2025 | EVeletric-vehicles . Between January and September 2025, Leapmotor delivered more than 395,000 vehicles globally, marking a 129% year-over-year increaseStellantis Leapmotor B03x Europe Launch Shocks EV Market With Affordable New SUVyoutube . However, Leapmotor's European ranking at only 24th in EV sales suggests the partnership has yet to deliver meaningful competitive impact in that marketThe internet is convinced “diesel is back” and “diesel is the future” after seeing a few headlines, and making up their own stories. You can tell a lot about a company by how it reacts when the market moves on without them. Stellantis are the first legacy car maker to accept that they have got it wrong, and have given up. In 2025, Battery Electric Vehicles made up 19.5% of all car sales in Europe, up 4.1% year-on-year, and will grow again throughout 2026. But here’s the interesting part👇🏼 If you look at the top 25 best-selling BEVs across Europe, only ONE Stellantis vehicle made the list. The Citroën e-C3, which is their budget EV. When you zoom out to brand performance across EV sales: • Peugeot ranked 13th • Citroën ranked 16th • Opel ranked 19th • Leapmotor ranked 24th Meanwhile, they were comfortably outsold by Volkswagen Group brands like Skoda & Audi, Tesla, and even BMW, which wasn’t far behind the entire Stellantis portfolio combined. So you’d expect the reaction here to be “let’s build better electric cars.” Instead, Stellantis has quietly reintroduced diesel versions of some of its most popular models like the Peugeot 308 and DS No.4. This is despite diesel making up just 7.7% of the European market in 2025 (and falling), and just 5.33% in the UK. We are literally watching legacy manufacturers try to re-enter a shrinking market, rather than compete in the one that’s growing, because they have accepted that they can’t. Demand for electrification isn’t slowing down, but some boardrooms clearly haven’t figured that out yet. Build better EVs or get left behind, like Stellantis.x .
The departure of Carlos Tavares—who resigned in December 2024 "due to differences with the board" following declining sales and layoffsStellantis Names Antonio Filosa as New CEOyoutube —and the appointment of Antonio Filosa as CEO effective June 23, 2025, marks a decisive strategic shiftStellantis Announces Antonio Filosa – 25-Year Veteran of the Company – to Be Its New Chief Executive Officer | Stellantisstellantis .
Filosa has explicitly attributed the company's problems to his predecessor's approach: "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"Stellantis Takes Massive $26.5 Billion Hit On EV Pullbackjalopnik . He noted that "poor operational execution from his predecessors is responsible for the company's current EV situation"Stellantis shocking announcement leads to huge stock declinethestreet .
The new strategy prioritizes:
Stellantis's 2025 financial outcomes illuminate several structural dynamics reshaping the global automotive industry:
Battery electric vehicles remain fundamentally less profitable than ICE vehicles. Core powertrain component costs are nearly 2.5 times higher in a BEV than in an ICE vehicle, and the problem is exacerbated by lack of sales volume for most current BEV modelsElectric Vehicles: The Profit Puzzle for US Manufacturersbain . While Tesla maintains approximately 17% auto gross margins, no other major automaker is currently profitable with BEVsTesla and Auto Gross margins No automaker is currently profitable with BEVs, except Tesla with an impressive margin of around 17%. The cost of manufacturing a car is dropping faster than the average selling price, which is also decreasing. This means that despite the price cuts, Tesla is actually seeing an increase in its margins.x .
Global EV adoption patterns vary dramatically by region. While China achieved over 50% new energy vehicle penetration ahead of Beijing's 2035 targetClose to a hockey stick: China EV demand. 2020: 1.3 million 2025: 13.4 million "Beijing’s official target for EVs to account for 50 per cent of car sales by 2035, will be achieved 10 years ahead of schedule." Putting serious pressure on global automakers who had previously counted on China as a profit machine. • GM wrote down > $5bn of its business value in China • Porsche warned of a writedown in VW of up to €20bn • Nissan and Honda responded to a “drastically changing business environment” with a merger.x , European BEV registrations grew to 19.5% of sales in 2025—a 4.1% year-on-year increase, but below earlier projectionsThe internet is convinced “diesel is back” and “diesel is the future” after seeing a few headlines, and making up their own stories. You can tell a lot about a company by how it reacts when the market moves on without them. Stellantis are the first legacy car maker to accept that they have got it wrong, and have given up. In 2025, Battery Electric Vehicles made up 19.5% of all car sales in Europe, up 4.1% year-on-year, and will grow again throughout 2026. But here’s the interesting part👇🏼 If you look at the top 25 best-selling BEVs across Europe, only ONE Stellantis vehicle made the list. The Citroën e-C3, which is their budget EV. When you zoom out to brand performance across EV sales: • Peugeot ranked 13th • Citroën ranked 16th • Opel ranked 19th • Leapmotor ranked 24th Meanwhile, they were comfortably outsold by Volkswagen Group brands like Skoda & Audi, Tesla, and even BMW, which wasn’t far behind the entire Stellantis portfolio combined. So you’d expect the reaction here to be “let’s build better electric cars.” Instead, Stellantis has quietly reintroduced diesel versions of some of its most popular models like the Peugeot 308 and DS No.4. This is despite diesel making up just 7.7% of the European market in 2025 (and falling), and just 5.33% in the UK. We are literally watching legacy manufacturers try to re-enter a shrinking market, rather than compete in the one that’s growing, because they have accepted that they can’t. Demand for electrification isn’t slowing down, but some boardrooms clearly haven’t figured that out yet. Build better EVs or get left behind, like Stellantis.x . In the U.S., Q3 2025 EV sales surged 40% year-over-year as consumers rushed before federal incentive expiration, followed by a 25% drop in OctoberRecord electric vehicle sales show American demand – will U.S. automakers deliver or retreat? - International Council on Clean Transportationtheicct .
Dealer sentiment on EVs declined sharply in Q4 2025: among franchised dealers, future EV sales sentiment dropped to 24 (from 33 in Q3), and EV leasing sentiment fell to 27 (from 36)Q4 2025 Cox Automotive Dealer Sentiment Index: Dealer Caution Deepens as Market Sentiment Falls; EV Outlook and Profits Weaken While New-Vehicle Inventory Grows - Cox Automotive Inc.coxautoinc .
The battery manufacturing investments made during the 2021-2022 EV enthusiasm cycle are being unwound. The pattern is consistent across automakers: GM sold its stake in the Lansing battery plant JV to LG Energy Solution; Ford announced plans in December 2025 to dissolve its joint venture with SK On; Stellantis sold NextStar for $100LG Energy Solution bought NextStar Energy for $100.substack . The strategic shift is toward procurement relationships rather than ownership stakes—"buy the cells, don't own the factory"LG Energy Solution bought NextStar Energy for $100.substack .
The fundamental challenge is that regulatory timelines mandating EV adoption have outpaced consumer demand growth in Europe and North America. Stellantis's head of European operations noted that based on EU rules, the group's EV sales would need to increase to 21% of total sales from 12%, with potential fines of €300 million for each missed percentage pointTesla, Volvo poised to gain as CO2 emissions alliances rapidly form to avoid EU finesyahoo .
The industry appears to be settling into a longer hybrid transition than originally anticipated. Stellantis "firmly maintained the top spot in the strategic hybrid vehicle segment with a 15% market share" in EuropeWith over 2.4 million registrations and a 16% market share, Stellantis closes 2025 as the second-largest OEM in the EU30 automotive market | Corporate Communications | Stellantis Mediastellantis , and the new strategy explicitly includes expanding PHEV options. Analysis suggests "we're moving towards a midterm that's more plug-in hybrid heavy" before eventual BEV dominancePricing is one of the biggest reasons behind EV slowdowns, says RBC's Tom Narayanyoutube .
Stellantis projects mid-single-digit net revenue growth and low-single-digit adjusted operating margin for 2026, with an estimated €1.6 billion tariff impactStellantis drives up +3.2% today despite first-ever annual net loss of €22.3B ($26.3B) in 2025. $STLA's loss were due to €25.4B write-downs from scaling back EV strategy. CEO Antonio Filosa: “North America is a very strong growth in volume.. very encouraging. This growth will be the largest contributor in the world for Stellantis’ profitability.” AND, H2 2025 showed signs: shipments 2.8M units, net revenues +10% to €79.25B. 2026 outlook reiterated: mid-single-digit net revenue growth, low-single-digit adj op margin. Tariff hit est €1.6B in 2026. Dividend suspended. Auto giant resetting for actual ground reality, market likes the pivot for now.x . Second-half 2025 shipments increased 11% year-over-year, with North America contributing 231,000 additional units (+39%)Stellantis Reports Full Year 2025 Financial Results | Corporate Communications | Stellantis Mediastellantis .
CEO Filosa characterized North America as showing "very strong growth in volume... very encouraging. This growth will be the largest contributor in the world for Stellantis' profitability"Stellantis drives up +3.2% today despite first-ever annual net loss of €22.3B ($26.3B) in 2025. $STLA's loss were due to €25.4B write-downs from scaling back EV strategy. CEO Antonio Filosa: “North America is a very strong growth in volume.. very encouraging. This growth will be the largest contributor in the world for Stellantis’ profitability.” AND, H2 2025 showed signs: shipments 2.8M units, net revenues +10% to €79.25B. 2026 outlook reiterated: mid-single-digit net revenue growth, low-single-digit adj op margin. Tariff hit est €1.6B in 2026. Dividend suspended. Auto giant resetting for actual ground reality, market likes the pivot for now.x . Notably, despite reporting its first annual loss, Stellantis shares rose 3.2% on the resultsStellantis drives up +3.2% today despite first-ever annual net loss of €22.3B ($26.3B) in 2025. $STLA's loss were due to €25.4B write-downs from scaling back EV strategy. CEO Antonio Filosa: “North America is a very strong growth in volume.. very encouraging. This growth will be the largest contributor in the world for Stellantis’ profitability.” AND, H2 2025 showed signs: shipments 2.8M units, net revenues +10% to €79.25B. 2026 outlook reiterated: mid-single-digit net revenue growth, low-single-digit adj op margin. Tariff hit est €1.6B in 2026. Dividend suspended. Auto giant resetting for actual ground reality, market likes the pivot for now.x , suggesting investors may be responding positively to the strategic reset.
The challenges remain formidable: U.S. tariffs, regulatory compliance costs, competitive pressure from Chinese manufacturers, and the need to simultaneously invest in multiple powertrain technologies while restoring profitability. Stellantis's 2025 results demonstrate that the EV transition is proving far more expensive, slower, and strategically complex than legacy automakers anticipated—a lesson being learned across the industry at a cost now exceeding $50 billion in write-downsThe Car World Is Going Electric, Without America. "When it comes to electrics, Detroit was in denial for too long. Then it panicked and launched a flurry of flawed initiatives and hurried Hail Marys. That knee-jerk reaction is now costing the automaker - and America – a fortune. In December 2025, Ford announced a $19.5 billion write down on its electric vehicle investments, one of the largest charges in corporate history. Ford killed the F-150 Lightning, the electric truck executives not too long ago compared tot he Model T. Days later, General Motors disclosed a $6 billion charge of tis own, Just last week, Stellantis, owner of the Jeep, Dodge and Chrysler brands, announced its own colossal hit, taking a $26.5 billion dollar write down on its EV investments. In total, that is 50 billion dollars gone." How did we get here? Read my compete piece is The Free Press, today. https://t.co/xAlgahncUHx .