Core Viewpoint - The European auto industry is at risk of facing an "irreversible decline" according to Stellantis Chairman John Elkann [1] Industry Summary - The warning highlights significant concerns regarding the future sustainability and competitiveness of the European automotive sector [1]

Core Viewpoint - Stellantis opposes the EU's 2035 ban on new internal combustion engine vehicles, advocating for the continued sale of plug-in hybrids and range-extended electric vehicles, and supports alternative fuels as a decarbonization pathway [2][4][12] Industry Response - Stellantis is among several European automakers pressuring the EU, highlighting the significant impact on Italy's economy and employment due to the strict implementation of the ban [4][9] - The company promotes a "technology-neutral" principle, arguing for the coexistence of various technological pathways, including plug-in hybrids and synthetic fuels, to address consumer needs and regional differences [4][10] Market Conditions - The European Automobile Manufacturers Association (ACEA) reports that the EU's electric vehicle penetration rate for 2024 is significantly below expectations, indicating that the market is not developing as policymakers envisioned [5][7] - The slow sales of electric vehicles, particularly in major markets like Germany and France, coupled with varying subsidy policies across EU member states, have created challenges for the automotive industry [7][8] Infrastructure Challenges - The lack of adequate charging infrastructure is a major bottleneck for electric vehicle adoption, with the current installation rate of charging stations falling far short of the required pace [8] - High raw material costs are increasing production expenses for automakers, squeezing profit margins and leading to layoffs and factory closures as companies struggle to adapt [8][11] Divergent National Perspectives - There are notable divisions among EU member states regarding the 2035 ban, with countries like Italy advocating for a delay due to the potential devastating impact on their automotive industries [9][10] - Germany is pushing for exemptions for synthetic fuels, viewing them as a viable transitional solution for high-end fuel vehicles to achieve carbon neutrality [10] Future Implications - Regardless of whether the ban is modified, European automakers face pressure to accelerate electrification, which may lead to short-term employment issues and economic repercussions [11][12] - The debate over the ban reflects the broader conflict between environmental ideals and the survival of the automotive industry, with the outcome potentially reshaping global decarbonization strategies [12]

Core Insights - European new car registrations increased by 4.9% year-on-year in October, reaching 1.09 million units, marking the fourth consecutive month of growth driven by the introduction of more affordable electric vehicle models [1][3] Group 1: Market Performance - Spain and Germany showed the most significant sales growth among major markets, while the UK and Italy experienced stagnation [1] - In October, electric vehicle sales in Europe saw substantial growth, with plug-in hybrid vehicle registrations surging by 40% and pure electric vehicle registrations increasing by nearly one-third [3] - Renault's sales grew by 11% year-on-year in October, while Volkswagen and BMW also reported steady growth [3] Group 2: Competitive Landscape - BYD, a Chinese automaker, demonstrated remarkable performance in the region, with sales more than doubling, significantly outpacing Tesla, which saw a 48% drop in registrations [3] - Despite ongoing investments in electric vehicle development, some manufacturers are seeking more flexibility from policymakers regarding emission regulations [6] - The upcoming meeting between automakers and EU officials will discuss potential adjustments to the 2035 ban on gasoline vehicles, with differing stances from Germany and Spain on regulatory flexibility [6] Group 3: Future Outlook - Analysts predict that the European automotive market will continue to improve from 2026 to 2027, with local manufacturers expected to begin a recovery process starting next year due to new electric vehicle subsidy policies, cost control measures, and strategic adjustments [7]

Core Insights - Saudi Arabia is shifting from being a consumer to a manufacturer in the automotive industry, aiming to establish a local vehicle production base as part of its Vision 2030 initiative [4][7][9] - The memorandum of understanding signed with Stellantis and Petromin marks a strategic step towards localizing production and enhancing the supply chain in Saudi Arabia [7][8] - The automotive market in Saudi Arabia is transitioning, with a significant focus on electric vehicles (EVs) and a projected increase in local manufacturing capabilities [11][12][14] Group 1: Memorandum of Understanding - The memorandum aims to assess the feasibility of building a vehicle manufacturing plant in Saudi Arabia, focusing on both passenger and commercial vehicles [7] - Key players involved include the Saudi Investment Ministry, the National Industrial Development Center, Stellantis, and Petromin, emphasizing local production and job creation [8] - The project is still in the early stages, with specific investment amounts and production capacity details yet to be disclosed [7] Group 2: Market Dynamics - Saudi Arabia is the largest automotive market in the Middle East, with passenger vehicles expected to account for over 70% of the market by 2024, while traditional fuel vehicles still dominate [11] - The demand for electric vehicles is growing, with sales projected to reach approximately 24,000 units in 2024, marking it as the fastest-growing segment [11] - Chinese brands are gaining traction in the EV market, with expectations to increase their market share in the Middle East and Africa from about 10% in 2024 to over 30% by 2030 [11] Group 3: Strategic Partnerships - The King Salman Automotive Industry Cluster is being developed in the Red Sea Economic City, attracting companies like Lucid and Hyundai to establish manufacturing facilities [12][13] - Stellantis is investing in local production to align with its "Dare Forward 2030" strategy, aiming for a 22% market share in the region and a significant increase in electric vehicle offerings [14][16] - The collaboration with Stellantis is seen as a way for Saudi Arabia to diversify its economy and reduce reliance on oil by developing a robust automotive manufacturing sector [17][18]

Core Insights - Stellantis is likely to withdraw completely from Comau, with its remaining stake expected to transfer to One Equity Partners, a US private equity firm [1][2] - One Equity Partners acquired a majority interest in Comau at a valuation of approximately €300 million ($345.7 million), including debt [1] - Stellantis received about €150 million from the transaction, reinvesting roughly half to maintain a 49.9% stake in Comau [2] Stake and Options - One Equity Partners has an option to purchase the remaining 49.9% of Comau within three years, while Stellantis will have the right to sell its minority interest starting in 2027 [2][3] - The options included in the agreement suggest a potential full transfer of ownership to One Equity Partners [3] Strategic Direction - Stellantis CEO Antonio Filosa emphasized the importance of maintaining an industrial partnership with Comau, regardless of the shareholding structure [3] - Comau is a significant supplier for Stellantis, contributing to projects like the new hybrid Fiat 500 [4] - One Equity Partners aims to expand Comau's activities and client portfolio beyond Stellantis and the automotive sector [4] Acquisitions and Growth - Comau is in the process of acquiring Invent Brasil, which specializes in industrial machinery and equipment [5] - In July, Comau announced the acquisition of Automha, a provider of automated solutions for warehouse and intralogistics operations [4]

Group 1: European Natural Gas Market - European natural gas futures have fallen below the €30/MWh mark, reaching their lowest point since May 2024, attributed to milder weather forecasts reducing heating demand and momentum towards peace talks between Ukraine, the US, and Russia [2][8] - The Dutch December TTF futures traded 3.1% lower at €30.20 per megawatt-hour [2] Group 2: Automotive Sector - Goldman Sachs has initiated coverage on several automotive manufacturers, issuing "Buy" ratings for Ferrari (RACE) with a target price of €391, BMW (BMW) with a target price of €112, and Mercedes-Benz Group Ag (MBG) [3][8] - Stellantis Nv (STLA) and Renault (RNO) received "Neutral" ratings with target prices of $10 and €36 respectively [3] Group 3: Technology Sector - Alphabet Inc (GOOGL, GOOG) has signed a multi-million dollar deal with NATO through Google Cloud to provide AI-enabled sovereign cloud capabilities, enhancing security and control over sensitive data [4][8] Group 4: Economic Indicators - Switzerland's Non-Farm Payrolls for Q3 2025 remained stable at 5.532 million, consistent with the previous quarter [5][8] - South Korea's Finance Ministry announced measures to improve pension fund returns and bolster foreign exchange market stability [5][8]

Core Viewpoint - Goldman Sachs initiates coverage of Stellantis (STLA.US) with a neutral rating and sets a target price of $10 [1] Group 1 - The coverage initiation indicates a cautious outlook on Stellantis, reflecting the current market conditions and company performance [1] - The target price of $10 suggests a potential upside or downside based on market fluctuations and company developments [1]

Core Insights - Stellantis is a significant player in the global automotive industry, formed from the merger of Fiat Chrysler Automobiles and PSA Group, producing vehicles under various brands like Jeep, Ram, and Peugeot [1] - Goldman Sachs initiated coverage of Stellantis with a Neutral rating, setting the stock price at $9.87 [1][6] Supply Chain Strategy - Stellantis is actively reshaping its supply chain, engaging in a potential liability-restructuring deal with Italian steel-component maker CLN-Coils Lamiere Nastri, which may allow banks to recover about half of their original exposure [2] - The company has agreed to pay more on its Italian supply contracts than previously negotiated, indicating a commitment to maintaining a strong relationship with CLN, a crucial supplier for its production [3] Stock Performance - Stellantis' stock price has increased by 6.93%, with a recent change of $0.64, reflecting market volatility [4][6] - The stock has fluctuated between $9.59 and $9.96 in a single day, with a yearly high of $14.28 and a low of $8.39, indicating significant price movement [4] - The market capitalization of Stellantis is approximately $28.51 billion, with a trading volume of 20.04 million shares, showcasing its substantial market presence [5]

Summary of Global Automobiles Conference Call Industry Overview - **Global BEV Sales Growth**: In September 2025, global Battery Electric Vehicle (BEV) sales increased by +31% year-over-year (y/y), reaching approximately 1.5 million units, marking a historic monthly high. For 3Q25, sales totaled 3.9 million units, reflecting a +32.4% y/y growth [1][2] - **Regional Performance**: The US led global growth in 3Q25 with a +33% y/y increase, attributed to pre-buying before the expiration of EV credits on September 30, 2025. Europe followed with a +32% y/y growth despite a seasonal decline of -2% quarter-over-quarter (q/q) [1] - **Future Projections**: Global BEV sales are expected to grow by +27% y/y in 2025, but growth will slow to approximately +14% y/y in 4Q25, primarily due to a potential sales decline in the US of -10% y/y or more after subsidy cuts [1] OEM Performance - **Tesla**: Gained market share in September 2025 (+120 basis points), with expectations of continued strength due to new entry-level models. However, a reversal is anticipated post-EV pre-buying in the US [2] - **BYD and Geely**: Experienced significant market share losses (-60 basis points and -100 basis points respectively) due to increased local competition and slower growth in China [2] - **US OEMs**: Celebrated the end of EV credits, pushing forward in the market [2] - **German Premium OEMs**: Mixed results; only Volkswagen and Mercedes-Benz gained market share, with Audi's global BEV sales up by +55% y/y in Q3 2025, while BMW saw a decline of -16% y/y [2] FY26 Outlook - **Sales Growth Expectations**: Global BEV sales growth is projected to decrease to approximately +17% y/y in FY26, down from +27% y/y in FY25, with total sales expected to reach around 16.9 million units [3] - **US Market Dynamics**: Anticipated zero growth in BEV sales in the US for FY26 due to the removal of purchase subsidies and changes in regulations [3] - **China's NEV Market**: Expected to see a reduction in purchase tax exemptions, leading to only a +1 million unit increase in BEV sales y/y, with intensified price pressure [3] - **European Market**: Projected to grow by +30% y/y, with BEV penetration reaching approximately 24%, supported by subsidy schemes in Italy and Germany [3] - **Chinese OEMs' International Expansion**: As domestic sales slow, Chinese OEMs like BYD plan to expand internationally, with new plants in Hungary and Türkiye set to open in 2026 [3] Additional Insights - **Model Launches**: Key model launches in FY26 include VW Polo/Cross, Hyundai Ioniq 3 & 9, Renault Twingo, BMW iX3/i3, and others [3] - **Market Share Trends**: Tesla's market share increased to 14.2% in September 2025, while BYD's decreased to 14.7%. Geely's market share fell to 7.1% [19] - **PHEV Sales Surge**: Anticipated surge in Plug-In Hybrid Electric Vehicle (PHEV) sales in China due to new EV rules, with PHEVs accounting for 40% of all passenger electric vehicle sales in the first eight months of 2025, reflecting a +35% y/y increase [8][9] This summary encapsulates the key points from the conference call, highlighting the current state and future outlook of the global automobile industry, particularly focusing on BEVs and the competitive landscape among OEMs.

Core Insights - The all-new Dodge Charger multi-energy lineup, featuring the 550-horsepower Dodge Charger Scat Pack and the 670-horsepower all-electric Dodge Charger Daytona Scat Pack, is a finalist for the 2026 North American Car of the Year award [2][3]. Product Highlights - The Dodge Charger Scat Pack, powered by a twin-turbocharged SIXPACK engine, delivers 550 horsepower and can accelerate from 0-60 mph in 3.9 seconds, with a starting MSRP of $54,995 [4][5]. - The all-electric Dodge Charger Daytona Scat Pack offers 670 horsepower, achieving 0-60 mph in just 3.3 seconds, and is priced starting at $59,995 [4][5][13]. - Both models are available in two-door and four-door configurations, providing consumers with a range of choices [3][4]. Market Positioning - Dodge emphasizes its commitment to performance and innovation, positioning the Charger lineup as the most powerful vehicles under $60,000 in their respective categories [3][4]. - The Charger lineup includes advanced features such as a driver-focused interior, a full suite of drive modes, and standard safety technologies [5][9]. Industry Recognition - The North American Car of the Year awards recognize outstanding new vehicles based on innovation, design, safety, and user experience, with the Charger lineup being selected by a jury of automotive journalists [7].