Stellantis Expects First Annual Loss In Company History
The company is scaling back its electrification efforts, and it's coming at a huge cost.
The Breakdown:
- Stellantis could report an annual operating loss for the first time.
- The automaker is taking a massive hit as it scales back its electric vehicle operations.
- Stellantis CEO Antonio Filosa told investors last week that Stellantis will return a profit this year.
Stellantis is expected to report its first annual loss later this week. The automaker, like others in the industry, is scaling back its electrification efforts, resulting in a massive hit to the company’s bottom line.
Earlier this month, Stellantis reported that winding down its EV roadmap would cost it an estimated €22 billion ($26 billion at today’s exchange rate). The automaker will report its 2025 results later this week.
The company expects it will report a second-half adjusted operating loss of €1.2 billion to €1.5 billion ($1.4 billion to $1.8 billion) after reporting a €500 million ($590 million) income for the first six months of 2025.
This would be the first time Stellantis reported an annual operating loss. The conglomerate was formed in 2021 through the merger of PSA Group and Fiat Chrysler Automobiles, bringing more than a dozen brands under one umbrella.
Stellantis CEO Antonio Filosa told investors earlier this month that Stellantis will return a profit in 2026. The automaker named Filosa to the role after former CEO Carlos Tavares departed the automaker in late 2024 amid mounting financial pressure and sluggish sales.
Motor1's Take: As automakers roll back and postpone their electrification plans, their bottom lines are taking massive hits. General Motors and Ford Motor Company also reported huge losses related to their electric vehicle plans, and something that will likely continue to cost automakers for the foreseeable future as they recalibrate their product portfolios.
Check Out More Stellantis News:
Source: Automotive News Europe
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