Stellantis Swings to "Freedom of Choice" Strategy After $22.3B Loss from Misjudging EV Transition

Stellantis Group's 2025 financial report revealed the company’s first net loss since its formation in 2021, amounting to a staggering $22.3 billion, primarily due to its premature and excessive bet on electric vehicle (EV) transition. The company acknowledged it had overestimated the pace at which consumers would embrace fully electric models, leading to poor sales and negative reception in the U.S. and European markets for several EVs, including the Fiat 500e and Jeep Wagoneer S. Although models like the Citroën e-C3 and Peugeot e-208 are available in Europe, their overall performance still lags behind competitors. In response, Stellantis has revised its strategy, emphasizing "freedom of choice" by offering internal combustion engine (ICE), hybrid, and electric vehicles simultaneously. The company has canceled the Ram 1500 BEV and Maserati MC20 Folgore projects and reintroduced internal combustion engines to the Fiat 500 lineup. In the second half of 2025, bolstered by a recovery in the Ram and Jeep brands—through initiatives such as relaunching Hemi engines and implementing price promotions—the group reported a 10% year-over-year increase in revenue and vehicle deliveries rebounding to 2.8 million units. CEO Filosa stated that in 2026, the company will focus on addressing execution gaps and returning to a path of profitable growth.