{"id":570154,"date":"2026-02-06T09:17:11","date_gmt":"2026-02-06T09:17:11","guid":{"rendered":"https:\/\/www.europesays.com\/us\/570154\/"},"modified":"2026-02-06T09:17:11","modified_gmt":"2026-02-06T09:17:11","slug":"stellantis-26-billion-hit-overhauling-its-business","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/570154\/","title":{"rendered":"Stellantis $26 billion hit overhauling its business"},"content":{"rendered":"

Stellantis logo is pictured at one of its assembly plants following a company’s announcement saying it will pause production there, in Toluca, state of Mexico, Mexico April 4, 2025.\u00a0<\/p>\n

Henry Romero | Reuters<\/p>\n

Shares of automaker Stellantis<\/a> plunged 20% in European trading on Friday, after the company said it expects to take a 22-billion-euro ($26 billion) hit from overhauling its business to accelerate the rollout of electric and hybrid vehicles.<\/p>\n

Shortly after the European opening bell, Milan-listed shares of the firm were 18.7% lower. <\/p>\n

Other French auto stocks also fell Friday morning, with Valeo<\/a> and Forvia<\/a> both down more than 1.2% and Renault<\/a> sliding 2%.<\/p>\n

Stellantis also pre-released some figures for the fourth quarter on Friday, saying it anticipates a net loss for 2025. In recognition of that net loss, it has suspended its dividend for 2026 and plans to raise up to 5 billion euros by issuing hybrid bonds.<\/p>\n

For 2026, the auto giant is targeting a mid-single-digit percentage increase in net revenue and a low-single-digit increase in its adjusted operating income margin.<\/p>\n

“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,” said Stellantis CEO Antonio Filosa in a statement.<\/p>\n

“They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new\u00a0Team.”<\/p>\n

\"Stellantis<\/p>\n

The company said its dividend pause and bond issuance would help preserve its balance sheet, and outlined the actions it had taken last year as part of its reset strategy. <\/p>\n

These included announcing “the largest investment<\/a> in Stellantis’ U.S. history” \u2014 totalling $13 billion over four years \u2014 as well as launching 10 new products, canceling products that could not achieve profit at scale, and restructuring its global manufacturing and quality management capabilities. <\/p>\n

Under the U.S. investment drive, the transatlantic automaker has said it will add 5,000 jobs to its American workforce. <\/p>\n

While these moves had resulted in costs of 22.2 billion euros, the company said they had collectively delivered a return to positive volume growth in 2025. <\/p>\n

In the second half of the year, Stellantis’ U.S. market share rose to 7.9%, while the company said it retained its overall second-place market share position in the enlarged Europe. <\/p>\n

‘Year of execution’<\/p>\n

The company’s stock has been under pressure for some time, with its Italian shares slumping nearly 25% last year and 40.5% the previous year. Shares are currently down more than 13% since the beginning of 2026. <\/p>\n

Stock Chart IconStock chart icon\"hide<\/p>\n

Stellantis share price<\/p>\n

Filosa previously dubbed<\/a> 2026 the “year of execution” for the embattled automaker, which has been grappling with falling sales and disappointing earnings for several years. <\/p>\n

Stellantis is scheduled to publish its 2025 earnings in full on Feb. 26. <\/p>\n","protected":false},"excerpt":{"rendered":"Stellantis logo is pictured at one of its assembly plants following a company’s announcement saying it will pause…\n","protected":false},"author":3,"featured_media":570155,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[6],"tags":[9231,6147,9167,24936,64,81,6795,746,248023,70415,99407,9230,522,67,132,68,248022],"class_list":["post-570154","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-antonio-filosa","tag-autos","tag-breaking-news-business","tag-breaking-news-europe","tag-business","tag-business-news","tag-dividends","tag-environment","tag-forvia-se","tag-milan","tag-renault-sa","tag-stellantis-nv","tag-transportation","tag-united-states","tag-unitedstates","tag-us","tag-valeo-se"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116022938602323154","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/570154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=570154"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/570154\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/570155"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=570154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=570154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=570154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}