The world's fourth-largest automaker has encountered a significant financial crisis. On February 6 local time, Stellantis NV (STLA.US), the fourth-largest global automotive manufacturer, saw its stock price plummet sharply after the U.S. market opened, dropping more than 26% during the session and closing down 23.79%. Earlier, the company's share price on the French market (STLAP.PA) had plunged nearly 30%, ending the day with a 25.24% decline.
The company announced a massive transformation provision of $26 billion (approximately €22.2 billion or RMB 180.4 billion). Stellantis stated that business restructuring led to a charge of about €22.2 billion in the second half of 2025, including approximately €6.5 billion in cash payments, expected to be completed over the next four years.
The €22.2 billion provision consists of three main components: €14.7 billion for realigning product plans according to customer preferences and new U.S. emission regulations, primarily reflecting significantly reduced expectations for pure electric vehicle products. €2.1 billion is related to adjustments in the electric vehicle supply chain scale, involving rationalization measures for battery manufacturing capacity. An additional €5.4 billion covers other operational changes, including €4.1 billion for warranty estimate revisions due to rising inflation and quality deterioration, and €1.3 billion for expenses related to regional workforce reductions in Europe.
Stellantis CEO Antonio Filosa stated in a declaration that this substantial provision primarily resulted from the company's previous overestimation of the energy transition's pace, leading to product strategies that diverged from actual consumer demand, purchasing power, and market willingness. It also reflects past operational execution issues that the new management team is gradually addressing. Filosa emphasized that Stellantis will continue to focus on electric vehicle development but will let "market demand rather than subjective planning guide" the electrification transition pace, abandoning aggressive transformation targets.
Public information shows that Stellantis NV was formed through the merger of France's PSA Group and Italian-American Fiat Chrysler Automobiles (FCA), operating 14 brands including Jeep, Maserati, Peugeot, and Citroën. As the world's fourth-largest automotive group, Stellantis reported 2024 revenue of $204.91 billion, ranking 28th on the Fortune Global 500 list.
Additionally, Stellantis's operational performance has also faced challenges. According to preliminary fourth-quarter 2025 data released early, the company anticipates losses between €19 billion and €21 billion (approximately RMB 155-172 billion) for the second half of 2025. Due to these losses, Stellantis has decided to suspend dividend payments for 2026 and plans to raise up to €5 billion through hybrid bond issuance to maintain its balance sheet. The company expects a low single-digit adjusted operating profit margin target for 2026.
Stellantis has discontinued products that cannot achieve profitable scale, including the previously planned Ram 1500 electric pickup truck. The company stated this decision responds to both customer demand and changes in U.S. regulatory framework. Furthermore, Stellantis announced another strategic contraction measure by selling its 49% stake in Canadian battery company NextStar Energy, a joint venture with South Korea's LG Energy Solution, completely exiting the project.
Notably, while scaling back electrification business, Stellantis is increasing investments in the U.S. market. The company announced the largest investment plan in U.S. market history, committing $13 billion (approximately RMB 90 billion) over the next four years while adding 5,000 new jobs domestically. This investment will focus on product development and capacity upgrades aligned with U.S. market demands to strengthen market share.
Data shows that Stellantis's U.S. market share rose to 7.9% in the second half of 2025, maintaining the overall second position in the expanded European market. The company's total sales returned to growth in 2025, providing confidence for this strategic adjustment.