Automaker Stellantis announced a business overhaul to accelerate electric and hybrid vehicle production, expecting to incur a charge of 22 billion euros (equivalent to $26 billion). The company's shares fell more than 14% during European trading on Friday.

Shortly after European markets opened, the Milan-listed firm's stock dropped by as much as 14.4%.

The Jeep parent company also released preliminary fourth-quarter figures, projecting a net loss for 2025. In light of the expected loss, Stellantis has suspended its 2026 dividend and plans to issue hybrid bonds to raise up to 5 billion euros. The automotive giant aims to achieve mid-single-digit percentage growth in net revenue and low-single-digit percentage improvement in adjusted operating profit margin by 2026.

CEO Antonio Filosa stated in a release: "The expenses announced today stem mainly from previous overestimations of the energy transition pace, which led to product offerings misaligned with consumer demand, purchasing power, and willingness to spend. They also reflect past operational shortcomings, which the new management is addressing."

The company said the dividend suspension and bond issuance will help maintain a strong balance sheet. It also outlined measures taken last year as part of a strategic reset, including what it called "the largest investment in Stellantis’ U.S. history"—$13 billion over four years to launch 10 new products, discontinue unprofitable models, and restructure global manufacturing and quality management systems.

Despite the 22.2 billion euro cost from these actions, Stellantis said the moves have helped return 2025 sales to growth. In the latter half of last year, its U.S. market share rose to 7.9%, while it maintained its position as the second-largest automaker by market share in the expanded European market.

Stellantis will release its full 2025 financial report on February 26.