Stellantis reports massive $26.3 billion loss but improving second half results as turnaround slowly begins

Core Viewpoint - Stellantis reported a significant full-year loss of 22.3 billion euros ($26.3 billion) due to a $26 billion EV-related charge, but showed signs of improvement in the second half of the year, indicating a potential turnaround under CEO Antonio Filosa [1][4]. Financial Performance - The company achieved second-half net revenue of 79.25 billion euros ($93.47 billion), which is 10% higher than the 71.86 billion euros ($84.64 billion) reported in the same period last year [2]. - Stellantis recorded a second-half adjusted operating income loss of 1.38 billion euros ($1.63 billion), a significant decline from a profit of 10.2 billion euros ($12 billion) in 2023 [3]. Production and Shipments - Global shipments increased by 11% in the second half, totaling 277,000 units, with all regions reporting higher volumes [4]. Charges and Strategic Adjustments - The company faced 25.4 billion euros ($29.96 billion) in unusual charges, primarily due to overestimating the pace of the energy transition and the need to realign production with customer preferences [4][5]. - CEO Antonio Filosa noted that the charges included the cancellation of the planned Ram 1500 battery electric vehicle and battery gigafactories in Italy and Germany, as well as impairments to several EV platforms [6].