Stellantis, the world's third-largest automaker, has shocked markets with unexpected losses. The company reported a staggering loss exceeding 180 billion yuan over six months, equating to daily losses of approximately 1 billion yuan. Compounding the crisis, Stellantis' European shares plummeted nearly 30%, marking the largest single-day decline in its history. The rapid decline of this European automotive powerhouse has left observers stunned.
While the name Stellantis may be unfamiliar to many, its portfolio of brands—including Peugeot, Citroën, Jeep, Alfa Romeo, Maserati, Fiat, and Chrysler—are household names worldwide. The conglomerate integrates 14 international automotive brands, creating a complex amalgamation of the global auto industry. Originally formed as a survival strategy, success was never guaranteed, and current challenges underscore this fragility.
Last year, Stellantis narrowly outperformed Hyundai-Kia to rank third globally in vehicle sales. However, high sales volumes have translated into even greater losses, becoming a curse for the company. The root cause lies in the broader struggle facing European automakers: the transition to electric and intelligent vehicles. Decades of entrenched supply chains and manufacturing systems, once strengths, have become burdens in the shift toward electrification and smart technology.
Under pressure from shifting global EV demand, rising costs, and intensifying competition, Stellantis has paused its electric vehicle expansion plans. The European giant is now trapped in a vicious cycle where increased sales lead to deeper losses.
Stellantis' rapid fall from profitability to massive losses illustrates the larger upheaval in the automotive industry. Recently, the global number three automaker disclosed half-year losses surpassing 150 billion yuan. The company, which owns 14 well-known brands such as Jeep, Peugeot, Fiat, and Maserati, announced a strategic pullback in its EV operations. This restructuring will result in non-cash impairments of $26 billion (approximately 180.4 billion yuan) and suspension of dividends until 2026.
The loss figure far exceeded market expectations, triggering an immediate sell-off. Stellantis' U.S.-listed shares fell over 26% during trading, closing down 23.79%. Earlier, its French-listed shares dropped nearly 30%, ending the day 25.24% lower—a record single-day decline. This sudden crisis reveals that scale alone no longer guarantees stability in the auto sector.
Notably, Stellantis is not an organically grown automaker but the product of successive mergers. In 2014, struggling U.S. automaker Chrysler merged with similarly troubled Italian carmaker Fiat to form FCA. Both companies had long underperformed in China and faced pressure from German and Japanese rivals globally. In 2019, FCA merged with PSA, leading to the formation of Stellantis in 2021. The group now encompasses 14 brands, each with significant name recognition.
In 2022, Stellantis sold over 6 million vehicles worldwide, generating net revenue of €179.6 billion and net profit of €16.8 billion. It was once a darling of Wall Street and European markets. Under CEO Carlos Tavares' cost-cutting strategy, the company achieved double-digit profit margins, even surpassing Tesla and Toyota at times. In 2024, its share price rose to €26 per share, making it a market favorite.
However, this peak may have been its last moment of glory. While revenue exceeded $200 billion in 2024, net profit collapsed by 70% to just €5.5 billion. Data disclosed in February 2026 exposed deeper issues: the company projected losses of €19–21 billion (approximately 155–172 billion yuan) for the second half of 2025. Non-cash impairments for that period alone reached €22.2 billion (around 180.4 billion yuan), mainly due to revaluation of North American operations and previously aggressive EV capacity investments. In effect, past ambitions are now being written off as losses.
Stellantis reported industrial free cash flow of negative €1.4–1.6 billion in the second half of 2025. To stay afloat, the company announced a €5 billion bond issuance to boost liquidity. Further worsening the outlook, Stellantis expects adjusted operating margins to fall to low single digits in 2026.
Two years ago, Stellantis invested €1.5 billion in Chinese EV maker Leapmotor. The partnership held significant promise for both sides: Stellantis would leverage Leapmotor's EV and smart technology for global product transformation, while Leapmotor would use Stellantis' established overseas presence to expand sales and promote Chinese EV technology abroad. Now, one partner is a newly profitable Chinese startup with doubled gross margins, while the other faces a survival crisis and strategic retreat. The financial turmoil has raised concerns among Chinese consumers and investors: could Leapmotor be dragged down?
At its core, Stellantis is an alliance of underperforming automakers. None of its brands excel individually; the merger was a survival move to avoid bankruptcy. A large brand portfolio does not equate to a strong competitive moat. Many brands rely on historical prestige rather than current market strength. Without shared platforms, technology, or software, multiple brands become a management burden and drain resources.
Stellantis missed opportunities during China's auto market boom and lacks hit products globally. In China, the group has largely failed, with no brand gaining solid footing. Fiat-Chrysler exited the market, and Maserati briefly gained attention with steep discounts but saw sales collapse once its luxury aura faded. Globally, Stellantis also underperforms—it has no single brand selling over 2 million vehicles annually. Peugeot, its top seller, moves only 1.35 million units per year.
Latest data shows Toyota and Volkswagen maintaining their top two positions in global sales. Stellantis ranked third with 7.8 million vehicles sold in 2025, slightly ahead of Hyundai-Kia's 7.65 million. Yet, it is staggering that the world's third-largest automaker could incur over 180 billion yuan in losses in just six months. How did Stellantis become the "Evergrande" of the auto industry? The answer lies in strategic miscalculations in EV strategy, which have led to enormous losses.
Stellantis' financial report is not just a statement of loss but a confession of failed aggressive transformation and profit chasing. CEO Antonio Filosa admitted, "The announced impairments reflect that we overestimated the pace of the energy transition, diverging from the actual needs, capabilities, and desires of many car buyers." Based on flawed strategy, Stellantis expanded its pure EV lineup excessively, leading to失控的产品规划. Overemphasis on pure electric models and neglect of hybrid transition technologies left the company with inflexible product offerings. When market preference shifted toward hybrids, Stellantis had no competitive products and was forced to urgently recalibrate—scaling back EV operations entirely.
Further evidence of retreat includes Stellantis exiting its Canadian battery joint venture with LG Energy Solution, canceling several EV models such as the RAM 1500 electric pickup in the U.S., and delaying Alfa Romeo's EV projects in Europe. Stellantis' crisis is not isolated. It is the latest and most severe example of traditional automakers struggling with electrification. Previously, Ford and General Motors announced impairment losses of $19.5 billion and $7.6 billion, respectively, due to EV strategy adjustments. Combined, these three giants have recognized nearly $50 billion (approximately 345.56 billion yuan) in impairments related to EV plan revisions.
For the world's third-largest automaker, the outlook for 2026 is bleak. The market has withdrawn its previous favor, reassessing everything on a scale of reality. It is a reminder that each technological shift reshapes the industry. As the automotive sector enters a critical period of transformation, one truth remains: to compete globally, automakers must first succeed in China.