Big problems at Stellantis: Losses of 22.2 billion euros and record stock market crash

The Electrification Trap: How Stellantis Lost Its Bet on Electrification

On a day that will probably go down in automotive history as "Black Friday" for the Stellantis group, the giant formed by the merger of Fiat Chrysler and PSA announced a radical change in strategy. The consequences are seismic: a massive asset writedown of 22.2 billion euros and a stock crash to its lowest level since the group's founding in 2021.

The Miscalculation: An Overly Optimistic Transition

The core of the current crisis lies in an overestimation of the speed at which global consumers, especially those in North America, are willing to adopt electric vehicles (EVs). Current CEO Antonio Filosa, who took over after Carlos Tavares’ abrupt departure at the end of 2024, was blunt: “The announced costs largely reflect the price of overestimating the pace of the energy transition, which has distanced us from the real needs and possibilities of buyers.”

This €22.2 billion financial “reset” is mostly made up of adjustments (around €14.7 billion) to product plans in the US. Here, the group was forced to cancel numerous all-electric vehicle projects that are no longer considered profitable or desirable by the market.

The Trump effect and the American market

The political context in the United States played a crucial role. The Trump administration's drastic reduction in subsidies for electric cars and the relaxation of emissions standards for internal combustion engines left Stellantis in a vulnerable position. The group, which relies heavily on the profits generated by the Jeep and Ram brands, realized that forcing an all-electric range would lead to a collapse in sales in the "heart" of the American market.

As a result, Stellantis has decided to take a step back, selling its 49% stake in the Canadian battery joint venture to partner LG Energy Solutions. The Windsor, Ontario plant, which was supposed to be a pillar of electrification, will now refocus its production on energy storage systems (ESS), including for AI data centers, in order to remain viable.

Tavares' legacy and quality issues

In addition to market changes, Stellantis is also struggling with the “ghosts” of the past. The aggressive cost-cutting strategy imposed by former CEO Carlos Tavares left behind major quality deficiencies. Antonio Filosa admitted that the group had to hire 2,000 engineers globally to fix execution errors in recent years. These operational “holes” have contributed significantly to accounting losses, forcing the company to review provisions for warranties and service recalls.

Financial impact: No dividends and a plummeting capitalization

The stock market reaction was brutal. Stellantis shares fell by up to 30% in a single session, wiping billions off the company's market value. The situation is paradoxical: the value of the accounting adjustments (22.2 billion euros) ended up exceeding, at certain points in the trading, the group's total stock market capitalization.

For shareholders, the worst news is the suspension of dividends for 2026, a painful first for a group that previously boasted generous returns. With a preliminary net loss estimated at between 19 billion and 21 billion euros for the second half of 2025, the group's priority has become preserving liquidity.

The Future: Flexibility as a Last Resort

Stellantis is not completely abandoning electrification, but it is changing its “compass.” The new strategy will be based on “multi-energy” platforms, capable of hosting both thermal, hybrid or electric engines, depending on market demand.

The group hopes that 2026 will bring a stabilization of revenues, counting on the launch of new internal combustion models in the US and increased operational efficiency. However, the road to recovery seems long, and investors are eagerly awaiting the February 26th, when the final results will be published, to see the true extent of the financial disaster and the first signs of a possible comeback.

Stellantis vs. Competition on the Romanian automotive market

While at a European level Stellantis manages to maintain its second position in the top manufacturers (after the Volkswagen Group), the reality on the Romanian market is much tougher for the Franco-Italian-American giant. In our country, no brand from the Stellantis portfolio managed to enter the Top 10 sales in 2025, a year marked by a major change in Romanians' preferences towards hybrid models at the expense of purely electric ones.

The Romanian auto market is authoritatively dominated by the Renault Group (Dacia & Renault) and the Volkswagen Group, while Stellantis is in a "plutonium" zone, fighting for single-digit market shares with Asian brands such as Toyota or Hyundai.

Top 10 Brands in Romania (Final Data 2025):

Rank	Brand	Units Sold (approx.)	Market Share Notes
1	Dacia	45,738	Clear market leader (Local production)
2	Toyota	15,893	Leader in the Hybrid segment
3	Renault	11,482	Strong performance of Clio and Captur
4	Skoda	11,299	Preferred choice for corporate fleets
5	Volkswagen	9,783	Solid demand for SUV models (Tiguan, T-Roc)
6	Hyundai	9,352	Strong growth in the Tucson and Kona range
7	Ford	7,345	Boosted by Puma (Local production)
8	Mercedes-Benz	5,488	Premium market leader
9	BMW	5,430	Strong competition in the luxury segment
10	Suzuki	4,735	High demand for affordable Mild-Hybrid tech

    Where is Stellantis? Brands such as Peugeot, Citroën, Opel and Fiat missed the top 10 best-selling brands, falling below the volume of 4,700 units each.

Why is Stellantis struggling in Romania?

There are three main reasons why the group's local performance is below the European average:

1. Import dependency vs. Local production: Dacia and Ford benefit from the advantage of “home turf” (factories in Mioveni and Craiova), offering prices and distribution networks that are hard to match. All Stellantis brands are imported, which makes them more sensitive to logistics costs and price fluctuations.
2. The (too) early bet on electrics: Stellantis aggressively pushed electric models (e-208, e-C4, Mokka-e). However, in 2025, the electric market in Romania registered a decline of almost 10%, while the hybrid segment exploded (+32%). The competition (Toyota, Hyundai) was much better prepared with solid portfolios of full and mild hybrids, capturing most of the customers who abandoned diesel.
3. Fragmentation of brand image: While Volkswagen or Toyota are perceived as monolithic blocks of reliability, Stellantis operates through multiple importers and sub-brands that sometimes cannibalize each other (e.g. a B-segment SUV customer can choose between the Peugeot 2008, Opel Mokka, Fiat 600 or Jeep Avenger, all on the same platform).

Strength: Commercial vehicles

The only area where Stellantis remains a formidable player in Romania is that of light commercial vehicles (LCVs). Models such as Peugeot Partner, Citroën Berlingo or Fiat Ducato maintain a solid market share (approx. 15-20% of the commercial vehicle segment), being preferred by courier and distribution fleets for their predictable maintenance costs.

The Future: "Salvation" Could Come from China

Interestingly, in Romania, importers handling Stellantis brands have already started to diversify. For example, Auto Italia (which imports Fiat and Jeep) has started partnerships with Chinese brands such as Chery, trying to fill the gaps left by the increasing prices of European cars.