A Reset Before the Game Over for Stellantis
- Published on 07/02/2026 10:33
- Modified on 07/02/2026 10:35
Stellantis has just announced a drastic financial plan called “reset,” raising questions about the viability of its model.
The automobile manufacturer Stellantis is experiencing a crucial turning point in its history with the announcement of a vast financial recovery plan termed a “strategic reset,” which has literally shaken the markets.
Stellantis stated that it would account for approximately €22.2 billion in exceptional charges for the second half of 2025 as part of this reset to align its business with actual customer expectations and profitable growth.
This amount includes:
- €14.7 billion related to the realignment of product plans, including a reduction in electric vehicle (BEV) forecasts and the cancellation of certain projects.
- €2.1 billion to resize the battery supply chain.
- €5.4 billion in other operational adjustments, including provisions for warranties.
The company also anticipates €6.5 billion in cash outflows spread over the next four years.
Market Reactions and Consequences
The revelation of these charges triggered a dramatic drop in Stellantis’s stock, with a decline of more than 25% on the Milan Stock Exchange, bringing the share price to its lowest level since the PSA-FCA merger.
Among the most significant decisions in the reset:
- Suspension of the 2026 dividend payment, a first for the group that breaks with a tradition of attractiveness for investors.
- Authorization to issue up to €5 billion in hybrid bonds to strengthen the balance sheet.
Preliminary outlooks for the second half of 2025 show an estimated net loss between €19 billion and €21 billion despite revenue growth (€78–80 billion), illustrating the extent of the gap between ambition and reality.
Strategic Turn or a Setback?
According to Stellantis, this reset reflects a necessary reorientation towards a diversity of powertrains (electric, hybrid, thermal) based on market signals rather than a single bet on electric vehicles.
However, for many analysts, this approach highlights errors in anticipating the electric vehicle market and inadequate operational execution, particularly on certain EV platforms.
No excessive dramatization; we are not at Game Over yet. The reset plan marks a significant strategic turning point, but above all, it is a test of resilience for the manufacturer. Its ability to restore investor confidence, stabilize its finances, and present a new strategic plan in May 2026 will be crucial.
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For Stellantis, this reset may be a beneficial shock rather than an admission of defeat… but the future will depend on its execution in a rapidly evolving automotive market.
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This page is translated from the original post "Un Reset avant le Game Over pour Stellantis" in French.
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