The French automotive company Stellantis announced a net loss of €22.3 billion for 2025, the second-largest in its history, due to adverse exchange rates and a shift from its previous high-price strategy.
Stellantis, the French automotive manufacturer, reported a staggering net loss of €22.3 billion for the year 2025, marking the second-largest loss in its company's history. The company’s revenues fell by 2% to €153.5 billion, despite a slight increase in vehicle sales volume to 5.48 million units, compared to 5.41 million in 2024. This decline in revenues has been attributed to unfavorable exchange rates and an aggressive pricing reduction strategy that reversed the high-price approach instigated by former CEO Carlos Tavares during the first half of the year.
In addition to the financial loss, Stellantis experienced operating losses of €842 million last year, resulting in a negative margin of 0.5%. The company announced that no dividends would be distributed to shareholders, a decision that underscores the severity of its financial situation. Although the group's net revenues rose by 10% year-on-year from July to December 2024, it suffered substantial impairments of €25.4 billion for the entire year, further compounding its financial difficulties.
The recent developments at Stellantis highlight the challenges facing the global automotive industry, including currency fluctuations and shifting consumer pricing strategies. As well, the implications of these financial results may reverberate throughout the supply chain, affecting suppliers and potentially leading to retrenchments within the company itself. Stakeholders will be keen to see how Stellantis addresses these challenges moving forward and what strategies will be implemented to regain financial stability and market competitiveness.
