"Stellantis has just posted its 2025 financial results, and it's in the red for the first time since its formation in 2021. The company reported a net loss of $22.3 billion last year after it had to support $25.4 billion in unusual charges attributed to what now looks like a botched shift toward electric vehicles."
"The EVs the giant has launched have been broadly uncompetitive, which is why most electric car buyers looked elsewhere. Even though it has plenty of battery-powered models on offer in Europe, none of them are selling particularly well."
"Freedom of choice is the name of the game now, which is Stellantis' way of saying it will shift more investment back to combustion-powered vehicles while still also offering plug-ins. According to Stellantis CEO Antonio Filosa, the results reflect the cost of overestimating the pace of the energy transition."
Stellantis reported a net loss of $22.3 billion in 2025, its first loss since formation in 2021, with $25.4 billion in unusual charges tied to a failed electric vehicle transition strategy. The automaker misjudged market demand for EVs and launched uncompetitive electric models that failed to attract buyers. In the U.S., offerings like the Fiat 500e, Dodge Charger Daytona, and Jeep Wagoneer S received poor reviews and minimal consumer interest. European EVs, including the Citroen e-C3 and Peugeot e-208, underperformed against competitors like the Renault 5 E-Tech. Stellantis now emphasizes customer choice, shifting investment toward combustion and plug-in hybrid vehicles while maintaining some electric offerings.
#ev-strategy-failure #automotive-industry #financial-loss #market-miscalculation #combustion-engine-pivot
Read at insideevs.com
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