Stellantis shares plummet 18.5% as carmaker expects $26.2B hit from business overhaul

By Mucahithan Avcioglu

ISTANBUL (AA) - The Netherlands-based carmaker Stellantis' shares plunged about 18.5% on Friday after the firm announced that it expects a €22.2 billion ($26.17 billion) hit from restructuring its operations to hasten the introduction of electric and hybrid vehicles.

"These actions continue the decisive changes Stellantis began implementing in 2025, which are already delivering early benefits, including a return to volume and Net revenue growth in H2 2025, increases in customer and dealer ordering, and improvements in initial quality KPIs," the automaker said in a statement.

Stellantis also pre-released some fourth-quarter data on Friday, stating that it expects a net loss in 2025. It has halted its dividend for 2026 in recognition of the net loss and intends to raise up to €5 billion through the issuance of hybrid bonds.

The automaker hopes to raise net revenue by a mid-single-digit percentage and its adjusted operating income margin by a low-single-digit percentage by 2026.

“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.

“They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new Team.”

The firm described the steps it took last year as part of its reset strategy and stated that its dividend halt and bond issue will help maintain its balance sheet.

These included releasing 10 new products, discontinuing those that were unable to generate profit at scale, revamping its worldwide production and quality management skills, and declaring "the largest investment in Stellantis’ U.S. history" -- $13 billion spread over four years.

The international manufacturer has stated that it will increase its American staff by 5,000 positions as part of the US investment move.

Stellantis said that even though these actions had cost €22.2 billion, they had all contributed to a return to positive volume growth in 2025.