Core Viewpoint - The company is expected to report a significant loss in the second half of the year, leading to the suspension of its 2026 dividend and plans to raise up to €5 billion through hybrid bond issuance [1] Financial Performance - The company anticipates a loss between €19 billion to €21 billion for the second half of 2025 [1] - The full financial report for 2025 is scheduled to be released on February 26, 2026 [1] Strategic Decisions - The company has decided to suspend the dividend for 2026 to maintain its balance sheet [1] - Plans to issue hybrid bonds to raise up to €5 billion have been announced [1] Business Operations - The company is scaling back its electric vehicle initiatives, including exiting the joint venture with LG Energy in Canada [1] - Production of the RAM 1500 electric pickup truck in the U.S. has been halted [1] - The Alfa Romeo electric vehicle project in Europe has been postponed [1]

Core Viewpoint - The sudden announcement of a significant financial write-down by Stellantis due to adjustments in its electric vehicle strategy has led to a dramatic drop in its stock price, causing widespread concern in the automotive sector [1][2]. Group 1: Financial Impact - Stellantis experienced a stock price drop of over 26% in the U.S. market and nearly 30% in Europe, marking the largest single-day decline in its history [1][2]. - The company announced a write-down of €22 billion (approximately ¥1800 billion), significantly exceeding analyst expectations [1][6]. - Stellantis plans to suspend its dividend for 2026 and aims to raise up to €5 billion through the issuance of hybrid bonds to maintain its balance sheet [8]. Group 2: Strategic Adjustments - The write-down primarily consists of €14.7 billion allocated for adjusting product plans to align with customer preferences and new U.S. emission regulations [2]. - An additional €2.1 billion is related to adjustments in the electric vehicle supply chain, including battery manufacturing capacity [2]. - Stellantis is also restructuring its operations, which includes a significant investment of $13 billion over four years to launch 10 new products and streamline its global manufacturing and quality management systems [3]. Group 3: Market Reactions - Other French automotive stocks, such as Renault, Valeo, and Faurecia, also saw declines, with Renault's stock dropping over 3% [4]. - The unexpected nature of the financial data release outside the anticipated fiscal year performance announcement caught investors off guard [5]. Group 4: Industry Trends - Stellantis is scaling back its electric vehicle initiatives, including exiting a joint venture with LG Energy Solution in Canada and halting production of certain electric models [10]. - This trend is not isolated, as Ford has also announced cuts to its electric vehicle plans, which will result in a $19.5 billion (approximately ¥135.3 billion) reduction in revenue [10].