By Eve Nowell 
Stellantis reported a net loss of $26.3 billion for 2025, citing nearly $29.9 billion in what it described as unusual charges tied largely to its aggressive electric vehicle transition. The automaker, which owns Jeep, Ram, Dodge, Chrysler, Alfa Romeo and other global brands, said net revenues fell 2 percent year over year to $180.8 billion. Company leadership acknowledged the financial hit came after overestimating how quickly consumers would move away from internal combustion engines.
The results mark a sharp reversal for one of the world’s largest automakers and signal a decisive shift in product strategy. CEO Antonio Filosa, who took over in June 2025 after the departure of Carlos Tavares, said the company is resetting its business around customer demand across electric, hybrid, and internal combustion vehicles. Tavares, who led the merger of PSA Group and Fiat Chrysler to create Stellantis, had pushed an aggressive EV rollout across all 14 brands, including major investments in dedicated electric platforms and battery production.
That strategy expanded from small European EVs into larger North American vehicles, including plans for electric replacements for legacy performance and SUV models. Stellantis developed electric architectures intended to underpin full-size sedans and trucks, including an electric successor to the V8-powered Dodge Charger. Billions were committed to engineering, tooling, and production capacity designed around battery-electric drivetrains.
Sales results show the transition did not unfold as projected. U.S. sales dipped 3 percent in 2025, with gains in the second half of the year driven largely by demand for gasoline-powered minivans, trucks, and SUVs. Electric models struggled to gain traction. The all-electric Jeep Wagoneer S sold just under 11,000 units, compared to approximately 210,000 Grand Cherokees sold during the same period. The electric Dodge Charger recorded 7,400 sales, while 2,100 gasoline Chargers built in 2023 continued to move off dealer lots. The Fiat 500e, imported and positioned as a small urban EV, managed roughly 1,100 sales.
The company’s plug-in hybrid portfolio also contracted. Chrysler and Jeep plug-in hybrid models, including the Wrangler 4xe, Grand Cherokee 4xe, and Chrysler Pacifica Hybrid, are not returning for the 2026 model year. The Pacifica Hybrid had been the only plug-in hybrid minivan available in the United States. The Alfa Romeo Tonale plug-in hybrid, imported from Italy and affected by tariffs, was discontinued in favor of a gasoline-only version. The related Dodge Hornet was eliminated entirely.
At the same time, Stellantis began reintroducing combustion powertrains into key models. The redesigned 2025 Ram 1500 initially launched without a V8 option, relying instead on a turbocharged six-cylinder engine. For 2026, the V8 returns to the lineup. The Dodge Charger also adds a turbocharged six-cylinder gasoline engine alongside its electric variant. These moves reflect a broader shift back toward engines that have historically driven the company’s North American sales volume.
Last September, Stellantis canceled its two-year-old all-electric Ram pickup program. The truck will be replaced with a version that uses a gasoline engine as a generator to power electric motors, blending combustion and electric propulsion in a range-extended format. That technology is scheduled to debut in the 2026 Jeep Grand Wagoneer and is expected to expand into other large North American vehicles in the lineup.
In Europe, the company has added hybrid options to small cars that were previously sold only as EVs. Stellantis also plans to reintroduce diesel engines into several European models following regulatory adjustments and renewed customer demand. The European Union’s decision to scale back its 2035 electric vehicle mandate altered the long-term outlook, prompting manufacturers to recalibrate product plans that had been built around a near-total EV transition.
Stellantis is not alone in absorbing heavy financial impacts from EV investments. Other major automakers, including Ford and General Motors, have recorded significant write-downs tied to electric vehicle programs. Ford’s all-electric F-150 Lightning program was discontinued last year and will return in a configuration that uses a gasoline engine to generate power for electric motors. Still, few automakers of Stellantis’ size have publicly reversed course so broadly on V8 and diesel offerings after signaling an all-electric future just a few years ago.
The financial breakdown shows the scale of the pivot. The $29.9 billion in unusual charges weighed heavily on the company’s balance sheet, overshadowing otherwise modest revenue declines. Leadership characterized the loss as the cost of misjudging the pace of the energy transition and restructuring the company’s portfolio to reflect buyer preferences. Executives emphasized that customers continue to demand a range of propulsion choices rather than a singular focus on battery-electric vehicles.
For Stellantis, brands like Jeep and Ram remain anchored in segments where towing capacity, range, and performance are central to purchase decisions. The return of V8 engines and diesel options reflects that reality. Performance-focused models such as the Charger carry brand heritage tied to internal combustion power, and recent sales figures suggest buyers have not fully embraced electric replacements at expected volumes.
Looking ahead, Stellantis forecasts a mid-single-digit percentage increase in net revenues for 2026. The company is betting that a diversified lineup spanning gasoline, hybrid, and electric technologies will stabilize sales and improve margins after a costly year of transition. Production plans are being adjusted to align more closely with demand trends observed in 2025.
The $26.3 billion loss stands as one of the most significant financial setbacks in the company’s history. Stellantis leadership has made clear that future product decisions will prioritize flexibility across powertrains rather than a rapid, unilateral shift toward full electrification. As 2026 approaches, the company is restructuring its strategy around that recalibration, with combustion engines once again taking a central role in its North American and European offerings.
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