Stellantis, the automaker behind Jeep, Fiat, and other brands, reported a net loss of 22.3 billion euros ($26.3 billion) for 2024, a sharp reversal attributed to overestimating electric vehicle demand and a strategic pivot back toward combustion engines. The significant loss follows the ousting of former CEO Carlos Tavares and underscores a broader industry retreat from EV commitments.
The financial results, announced by new CEO Antonio Filosa, reveal a current operating loss of 842 million euros. Despite revenue decreasing only 2% to 153.5 billion euros and vehicle sales rising slightly to 5.48 million, massive charges related to restructuring its EV strategy drove the annual deficit. Filosa stated the outcome reflects the “cost of over-estimating the pace of the energy transition,” framing a new priorities around customer choice across electric, hybrid, and internal combustion technologies.
This strategic shift is occurring against a changing regulatory landscape. Stellantis pointed to the U.S. withdrawal of EV subsidies under President Donald Trump and relaxed emissions targets in the U.S. and EU as factors. Major U.S. rivals Ford and General Motors have also announced multi-billion-dollar write-downs on their EV assets in response. Stellantis now expects U.S. tariffs to cost 1.2 billion euros in 2025 and 1.6 billion in 2026.
Operational changes are underway. The company is exiting key battery ventures, including selling its stake in Canada’s NextStar Energy gigafactory and planning to withdraw from a Samsung joint venture for U.S. gigafactories. It will relaunch combustion-engine models, including diesel, in North America and Europe. Stellantis maintains these moves do not alter its long-term commitment to electrification.
Leadership turmoil preceded the results; Tavares was replaced last July after board disagreements over his premium-pricing strategy. Filosa immediately initiated a management shake-up aimed at restoring profitability, with plans for new combustion-engine pickup models in the U.S. to drive a “return to profitable growth” in 2025. The company withheld dividends for 2024.
Formed in 2021 from the merger of PSA Group and Fiat-Chrysler, Stellantis’s dramatic financial reversal highlights the volatility of the global auto industry’s EV transition. The scale of the loss and the swift operational rollback signal profound challenges for legacy manufacturers navigating uncertain policy support and shifting consumer demand. The company’s ability to balance its near-term combustion-engine revival with future electrification goals will be closely watched by investors and the broader automotive sector.
