Stellantis, the parent company of Jeep, Dodge, and Chrysler, faces a financial setback of approximately $26.5 billion due to its investments in electric vehicles (EVs), marking the largest charge among automakers grappling with cooling demand for EVs and a volatile political climate. The write-down erased about 25% of the company's stock value overnight, although specific figures regarding EV losses have not been disclosed.
The company's struggles stem from longstanding issues in keeping pace with technological advancements and shifting consumer preferences in the automotive industry. An additional $16.7 billion charge for warranty and recall claims, including a recall of 320,000 Jeep 4xe plug-in hybrids due to battery-fire risks, further compounds the financial difficulties.
Stellantis's predicament mirrors its history under various names, including Fiat Chrysler, DaimlerChrysler, and Chrysler Corp., with the company often finding itself playing a slightly off-key role in the Motown trio of automakers. Stellantis is characterized by a penchant for quick fixes and pursuing low-hanging fruit, which in America's context typically translates to models equipped with Hemi V8 engines, powering pickup trucks, SUVs, and muscle cars.
In a move reminiscent of the past, Stellantis plans to increase production of Hemi engines from its Saltillo, Mexico, factory by tripling output in 2026 to meet demand for Ram 1500 pickups, Jeep Wranglers, and other models. Despite the current financial challenges, executives remain committed to satisfying consumer demands for these vehicles.
During a call with analysts last year, Stellantis CEO Antonio Filosa referenced the "Big Beautiful Bill" (a term often associated with President Trump's tax reform proposals) as providing more flexibility in selecting a mix of both internal combustion engine (ICE) and electric vehicle options.
In February 2026, during the Media Preview at McCormick Place in Chicago, a Stellantis driver showcased the 2026 Jeep Gladiator Rubicon to a journalist, emphasizing that such sales would bring significant additional profit for the automaker following recent financial losses in the electric vehicle (EV) market.
The article discusses the optimism of several major automakers, including General Motors, Ford, Toyota, and Stellantis, regarding anticipated profits due to the Trump administration's relaxed pollution and mileage regulations. However, it is noted that this trend may not persist indefinitely, and companies that fail to invest in affordable passenger cars and technology risk facing adverse consequences.
Stellantis' EV offerings have struggled to gain traction in the US market. For instance, the Dodge Charger Daytona, an attempt to modernize Mopar muscle for the electric era, did not succeed. As a result, a gasoline version was introduced. The Jeep Wagoneer S EV, priced at over $70,000 with options, also saw limited success in showrooms.
The 2026 Jeep Recon is Stellantis' latest attempt to attract buyers traditionally interested in the Tesla Model Y. However, like the Wagoneer S EV, it will carry a hefty price tag of $67,000 upon launch, with no consumer tax credit to mitigate the cost.
Despite name changes over the years—from Chrysler Corp. to Fiat Chrysler and now Stellantis—the company's struggles to adapt remain consistent.
The Trump administration's policies aim to freeze fuel-economy and emissions standards at levels last seen in the 1980s, a move that may provide temporary relief to automakers but could lead to significant challenges in the long term. Last week saw the repeal of the "endangerment finding," an historic ruling requiring the Environmental Protection Agency to regulate greenhouse gases as a threat to public health and safety. This decision effectively ends federal restrictions on vehicle emissions, a move that could have profound implications for the automotive industry in the years to come.
The Detroit Three automakers, comprising Ford, General Motors, and Stellantis, may avoid fines for noncompliance with tailpipe emission standards and fuel economy regulations. This development will relieve them of the burden of purchasing expensive climate credits from companies like Tesla and expenditures on electric vehicle (EV) development that have not contributed positively to their financial performance.
In light of these regulatory changes, the automakers are prompted to prioritize their offerings, with a focus on gasoline-powered SUVs and pickup trucks, which generate significant profits. The U.S. administration justifies this move as an initiative to make cars more affordable for consumers. This includes the abolition of fuel-saving technologies such as stop/start systems, deemed by the EPA to reduce fuel consumption by 7.3% to 26.4%. (It's worth noting that gasoline is a cost factor.)
Critics argue that this move could lead to increased vehicle costs due to the focus on feature-rich trucks and SUVs, contributing to the average new car price surpassing $50,000. The current low fuel prices also risk encouraging excessive consumption, reminiscent of previous episodes when automakers struggled to offload gas-guzzling vehicles during periods of high fuel costs.
Notably, Stellantis, like its competitors, claims it will not abandon the EV market. However, the company remains more dependent on sales of trucks and SUVs compared to its rivals. Despite assertions of expertise in this area, Stellantis' flagship Ram pickup truck has experienced a significant decline in sales, even after switching from a V-8 to a more fuel-efficient inline V-6 engine. This downturn is partly attributable to this transition but also relates to the overall market trend.
Stellantis, a global automaker, faces criticism over its production and market strategy following the botched rollout of the redesigned 2025 Ram and the lack of a competitive compact SUV model ahead of the launch of the 2026 Jeep Cherokee. The company is under pressure from all sides, including dealers, suppliers, unions, shareholders, and its managing board, due to slumping sales and relentless cost-cutting measures implemented by former CEO Carlos Tavares, who resigned abruptly in December 2024.
The 2025 Ram's production bottlenecks, quality glitches, and the elimination of an affordable "Classic" model in favor of high-end models like the $87,000 Tungsten edition have raised concerns about market malpractice. The company is also criticized for its lack of a straight-up rival for popular compact SUVs such as the Toyota RAV4 and Honda CR-V, with the Jeep Compass being much smaller and not up to par in this segment.
Compact SUVs account for 21 percent of all US sales and are one of 33 market segments, according to S&P Global Mobility. As a result, Stellantis is only competing in four-fifths of the market. "You can't keep changing course and expect things to improve," says Tom Libby, director of industry analysis for S&P Global Mobility.
Stellantis insists it won't walk away from electric vehicles (EVs), but the company remains more reliant on trucks and SUVs than any rival. In Europe, Stellantis' Peugeot and Citroen brands were doing solid EV sales, but the EU is watering down an EV mandate for 2035. As a result, Stellantis plans to resurrect diesel engines in at least seven European models, a move that has raised eyebrows among some analysts.
The revolving door of management hasn't helped stabilize the company. The latest CEO, Jeep brand head Christian Meunier, took over from Tavares and is expected to bring fresh strategies to the table. However, concerns remain about the company's ability to turn things around after a series of leadership changes and market missteps.
International automaker Stellantis, traditionally known for its diverse brand portfolio, currently finds itself without any diesel models to offer amidst a global shift towards electric vehicles (EVs). This situation marks a significant turning point in the industry as Europe's EV market share surges towards nearly 20%, leaving diesels at a mere 7.7%.
The company, notoriously burdened with an excess of underperforming brands such as Lancia, Vauxhall, and DS in Europe, faces mounting pressure to streamline its operations. Despite the apparent need for consolidation, Stellantis executives have consistently resisted making difficult decisions regarding brand disposal.
In the United States, brands like Chrysler are faltering, with little effort from management to revive them publicly expressed alongside declarations of loyalty and commitment. Attempts to reestablish Fiat and Alfa Romeo in America have been made, but with limited success; last year saw Alfa Romeo sell only 5,600 cars and Fiat a mere 1,300.
As it stands, Stellantis lacks the mainstream anchor provided by established brands such as General Motors' Chevrolet, Ford, Toyota, or Honda in the US market. Additionally, the company does not possess a high-margin luxury brand comparable to Cadillac, whose robust EV sales (prior to recent credit restrictions) propelled it past a struggling Audi in the US luxury rankings.
In August, Stellantis' share of the US retail market reached an all-time low of 5.4%, reflecting the challenges the company faces in adapting to the rapidly evolving automotive landscape. Analyst Tom Libby of S&P Global Mobility remarks, "You can't keep changing course and expect things to improve."
International automaker Stellantis is facing challenges in retaining market share, according to a report by S&P Global. In November, the company's retail share increased to 6.3 percent, marking a turnaround, yet it continues to lose ground to competitors Hyundai and Kia, whose sales have significantly escalated.
The Korean brands have gained an edge due to their comprehensive lineups that encompass affordable sedans, SUVs, and smartly designed EVs. A notable statistic highlights the severity of the issue: Stellantis' manufacturer loyalty measure, as per S&P, dropped to approximately 41 percent in August before recovering slightly to 47 percent for the fourth quarter. This indicates that fewer than half of current owners are purchasing another Stellantis model, with seven brands available. Among automakers offering at least two brands domestically, only Volkswagen had a lower repeat customer rate at 44 percent. General Motors (GM) reported a higher figure at 66 percent, followed by Toyota and Ford at 64 and 61 percent respectively.
Loyalty has become a crucial determinant of long-term success, as the competition intensifies among automakers for a limited or shrinking pool of new-car buyers. The winners are those who can poach customers from rivals, captivate younger generations, and ideally retain them for life.
Despite Stellantis' ability to produce appealing vehicles when at its best - such as the plush and powerful Ram, the revitalized Jeep Wrangler, the Dodge Challenger with its Hellcat and Demon variants, and the overlooked Maserati GranTurismo Folgore - it finds itself leaning on its traditional customer base. The question remains: Can Stellantis Turn Things Around?
International Automaker Stellantis Faces Pressure to Embrace Electrification as Chinese EV Competition Grows
In an increasingly electric vehicle (EV) market, global automaker Stellantis must adapt and invest in advanced technologies to remain competitive. The company's current reliance on traditional internal combustion engine (ICE) vehicles may soon become obsolete as European, Canadian, and American markets open up to Chinese EV manufacturers.
One intriguing development from Stellantis is the Ram 1500 REV pickup, a serial delay but promising technology play. This "extended range electric vehicle" (EREV) uses an ICE engine solely for generating electricity that powers the battery, providing more efficient mobility compared to current plug-in hybrids. The Ram REV offers up to 145 miles of electric range and a total range of 690 miles, appealing to American consumers concerned about EV range or long charging times.
Filosa, Stellantis' revitalization arm, has plans for the Chrysler brand, including an electric sedan based on the Halcyon concept and potentially a small, affordable sports car priced under $30,000. Filosa is also preparing a demonstration fleet of Charger Daytonas powered by semi-solid-state batteries from Massachusetts-based Factorial Energy. These batteries enabled a lightly modified Mercedes EQS sedan to travel 749 miles from Stuttgart to Sweden, with an additional 85 miles of range remaining. If successful, homegrown automakers like Stellantis could leapfrog the best lithium-ion technology offered by Chinese manufacturers, solidifying their position as tech leaders rather than followers.
Stellantis' success in adopting cutting-edge battery technology could redefine consumer perceptions of its brands, such as Dodge, Chrysler, and Ram. Achieving 500 miles of range with a 15-minute charge might encourage EV enthusiasts to consider these brands for the first time in their lives. While the clock is ticking on Stellantis' transition, it is not too late to adapt and maintain its competitive edge in the rapidly evolving automotive industry.
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