Stellantis Navigates a Rocky Road to Recovery: V8s, EVs and a Shifting Market
2025 proved to be a challenging year for Stellantis, marked by significant financial losses and the difficult decision to eliminate profit sharing for its U.S. Unionized workforce. Although, newly appointed CEO Antonio Filosa is signaling a determined turnaround strategy, betting heavily on iconic brands like Jeep and Ram, and a surprising resurgence of the V8 engine.
A $26 Billion Loss and the EV Rethink
Stellantis reported a staggering net loss of $26.2 billion for 2025, with $23.8 billion of that occurring in the second half of the year. This downturn prompted a reevaluation of the company’s electric vehicle (EV) strategy, resulting in approximately $26 billion in charges related to canceled EV programs. This mirrors a trend across the automotive industry, as companies like Ford and GM have too taken substantial write-downs due to slower-than-anticipated EV adoption rates.
The Return of the Hemi and the Cherokee’s Comeback
Despite the EV adjustments, Stellantis is doubling down on what’s currently selling: traditional powertrains and popular models. The Ram 1500 will once again offer the Hemi V-8 engine, with an additional 100,000 trucks slated for production to meet a robust demand of 50,000 existing orders. This move is partially enabled by relaxed emissions regulations. Simultaneously, the Jeep Cherokee is back in production, rolling off the assembly line in Toluca, Mexico, and expected to arrive in dealerships in March. The order book for North American vehicles is up 150 percent year-over-year, with the Cherokee contributing significantly to this increase.
Beyond Ram and Jeep: Dodge, Alfa Romeo, and Future Plans
Filosa’s turnaround plan extends beyond Jeep and Ram. While details are still forthcoming – a Capital Markets Day in the first half of 2026 will reveal a more comprehensive strategy – the focus will likely include bolstering Dodge and Alfa Romeo. The Dodge Charger two-door Sixpack has already sold out its planned 2026 production run. Stellantis launched 10 new models globally in 2025 and anticipates further growth with upcoming releases like the Jeep Recon electric SUV and a potential mid-size Ram pickup to fill the void left by the discontinued Dodge Dakota.
The Impact of EV Cancellations and Battery Plant Adjustments
The shift away from aggressive EV targets has led to some difficult decisions. Stellantis canceled programs like the Ram 1500 electric pickup and the Jeep Wrangler 4xe, requiring payments to suppliers impacted by these changes. The company is selling its 49 percent stake in the NextStar Energy battery plant in Windsor, Ontario, to LG Energy Solution.
What Does This Mean for the Future of Stellantis?
Stellantis’s current strategy represents a pragmatic response to evolving market conditions. The company is capitalizing on existing demand for popular models and proven powertrains while recalibrating its EV roadmap. This approach aims to restore profitability in 2026, but the long-term success will depend on navigating the complexities of a rapidly changing automotive landscape.
FAQ
Q: Why did Stellantis report such a large loss in 2025?
A: The loss was primarily due to charges related to the cancellation of several EV programs and a slowdown in EV demand compared to previous projections.
Q: What is Stellantis doing to improve its financial performance?
A: Stellantis is focusing on increasing production of popular models like the Jeep Cherokee and Ram 1500 with the Hemi V-8 engine, and adjusting its EV strategy.
Q: Will Stellantis continue to invest in electric vehicles?
A: Yes, but the company is taking a more measured approach, focusing on hybrid technologies and adjusting its timeline for full EV adoption.
Q: What is Antonio Filosa’s role in this turnaround?
A: Antonio Filosa became CEO of Stellantis in May 2025 and is leading the effort to restore profitability and revitalize the company’s strategy.
Did you grasp? The return of the Hemi V-8 engine in the Ram 1500 is a direct response to consumer demand and changes in emissions regulations.
Pro Tip: Keep an eye on Stellantis’s Capital Markets Day in the first half of 2026 for a more detailed appear at their long-term strategy.
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