Financial Data and Key Metrics Changes - Consolidated shipments and net revenue both increased by 13% year-over-year, with consolidated shipments reaching 1.3 million units, an increase of 152,000 units [19][5] - Net revenues amounted to €37.2 billion, also reflecting a 13% increase compared to the third quarter of 2024 [19][20] - North America saw a 35% improvement in shipments, primarily due to normalized inventory dynamics following previous dealer inventory reductions [19][20] Business Line Data and Key Metrics Changes - North American sales rose by 6% year-over-year, driven by strong performances from Jeep products such as Wrangler, Gladiator, and Wagoneer [9][19] - In Europe, market share decreased by 70 basis points due to softer volumes in key markets, although new product launches are expected to improve performance [10][19] - The company launched two major products in the third quarter, with plans for additional launches in both North America and Europe [6][7] Market Data and Key Metrics Changes - The U.S. market share is showing signs of improvement, while Europe is facing challenges with declining volumes in the French and Italian markets [5][10] - South America experienced a 5% revenue decline, attributed to tough comparisons with the previous year [23] Company Strategy and Development Direction - The company announced a $13 billion investment in U.S. manufacturing, aimed at increasing production capacity by 50% and introducing five all-new vehicles [15][16] - The strategy focuses on correcting past product gaps and enhancing market competitiveness, particularly in the U.S. mid-size SUV segment [33][34] - The company is also engaging with European policymakers to advocate for necessary reforms in the automotive industry [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to top-line growth and confirmed guidance for continued sequential improvement in the second half of 2025 [24][27] - The management acknowledged challenges in Europe but emphasized ongoing efforts to regain market share and improve profitability [10][11] Other Important Information - The company is refining its warranty cost estimation methodology, which may lead to one-time charges but is not expected to materially impact future profitability [25][26] - The company is actively monitoring supply chain issues, particularly related to chip shortages, to mitigate potential disruptions [80] Q&A Session Summary Question: Can you discuss production capacity and pricing power improvements? - Management highlighted a return to top-line growth and favorable pricing dynamics, with a focus on correcting past strategic decisions to enhance product offerings [32][33] Question: What are the key levers for improving free cash generation? - The primary driver for free cash flow improvement is expected to be volume growth in North America [35] Question: Can you clarify free cash flow dynamics and expectations for 2026? - Management confirmed that the anticipated cash flow dynamics are correct, with North America being the main region for volume improvement [39] Question: What is the outlook for European margins? - Management confirmed intentions to improve margins in Europe through strategic product launches and market share recovery [71][74] Question: How will the $13 billion U.S. investment impact restructuring needs? - The investment is aimed at leveraging industrial capacity without planned shutdowns, focusing on growth in the U.S. market [77] Question: What are the implications of new U.S. regulations on the company? - Management welcomed the new regulations as opportunities for growth and emphasized a strategy focused on product diversity and customer choice [85]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated shipments increased by 13% year-over-year, totaling 1.3 million units, marking a return to growth after seven quarters of decline [19][5] - Net revenues reached €37.2 billion, also up 13% compared to Q3 2024, driven by improvements in North America, Europe, and the Middle East and Africa [19][20] - The revenue increase was primarily due to a 13% volume increase, with pricing up 2% year-over-year [20][21] - The company confirmed its guidance for the second half of 2025, expecting continued growth and improved industrial efficiency [24][27] Business Line Data and Key Metrics Changes - North America saw a 35% improvement in shipments, significantly contributing to the overall growth [19] - The Jeep Wrangler and Ram light-duty nameplates were key drivers of volume improvement in North America [22] - In Europe, the company faced challenges with softer volumes, leading to a 70 basis point decline in market share [10][19] - The company plans to launch several new products, including the Fiat 500 Hybrid and Jeep Compass, to regain market share in Europe [10][68] Market Data and Key Metrics Changes - U.S. sales rose by 6% year-over-year, with strong performance from Jeep products [9] - The Middle East and Africa region experienced a 21% increase in shipments, primarily due to higher volumes in Algeria [23] - South America saw a 5% decline in revenue, attributed to tough comparisons with the previous year [23] Company Strategy and Development Direction - The company announced a $13 billion investment in U.S. manufacturing, aimed at increasing production capacity by 50% and introducing five new vehicles [15][16] - The strategy focuses on correcting past product gaps and enhancing market share in key segments, particularly in North America [33][34] - The company is also engaging with European policymakers to advocate for necessary reforms in the automotive industry [11][68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to top-line growth and the positive impact of new product launches [27][32] - The company is focused on improving pricing power and production capacity utilization as part of its growth strategy [30][33] - Management highlighted the importance of maintaining strong inventory discipline and managing working capital effectively [22][71] Other Important Information - The company is experiencing ongoing pricing headwinds in Europe but positive pricing dynamics in South America and the Middle East and Africa [22] - A strategic review is underway, which may lead to further charges in the second half of 2025 [25][80] - The company is monitoring the global chip shortage closely, implementing measures to mitigate its impact on production [73] Q&A Session Summary Question: Can you discuss the improvement of production capacity and pricing power? - Management noted a return to top-line growth and favorable pricing dynamics, emphasizing the importance of addressing past product gaps [30][32] Question: What are the key levers to improve free cash generation in the second half? - The primary driver for free cash flow improvement is expected to be volume growth in North America [31][35] Question: Can you clarify the expected free cash flow dynamics for the second half? - Management confirmed that the dynamics discussed are correct, with North America being the main region for volume improvement [37][39] Question: What is the outlook for U.S. tariffs and their impact on future profitability? - The new strategy aims to reduce exposure to tariffs while focusing on growth in the U.S. market [39][40] Question: What are the expectations for European margins and working capital? - Management aims to improve margins in Europe through product actions and anticipates slight increases in working capital due to higher volumes [66][71] Question: Can you provide insights on the warranty costs and provisions? - The review of warranty methodology may lead to non-cash provisions, with limited cash impact expected in 2025 [50][80] Question: What are the trends for October and Q4 volumes, especially in the U.S.? - Management expects improved volumes in North America, driven by new product launches hitting dealer lots [62][63]

Financial Data and Key Metrics Changes - In Q3 2025, Stellantis reported a 13% increase in consolidated shipments and net revenues compared to the prior year, with consolidated shipments reaching 1.3 million units, up 152,000 units [4][18] - Net revenues amounted to €37.2 billion, also reflecting a 13% year-over-year increase, driven by improvements in North America, Europe, and the Middle East and Africa [18][19] - The company confirmed its financial guidance for the second half of 2025, expecting continued sequential improvement [4][22] Business Line Data and Key Metrics Changes - North America saw a 35% improvement in shipments, primarily due to normalized inventory dynamics following previous dealer inventory reductions [18][19] - The Jeep brand experienced a sales growth of 11% in Q3, nearly double the U.S. market's growth of 6% [15] - In Europe, the company faced a 70 basis point decline in market share due to softer volumes in key markets, but plans to introduce new products to regain share [8][21] Market Data and Key Metrics Changes - U.S. sales rose 6% year-over-year, with strong performances from Jeep products like Wrangler and Gladiator [7][18] - The Middle East and Africa region reported a 21% increase in shipments year-to-date, driven by higher volumes in Algeria [21] - South America experienced a 5% decline in revenue, attributed to tough comparisons with the previous year [21] Company Strategy and Development Direction - Stellantis announced a $13 billion investment in U.S. manufacturing, aimed at increasing production capacity by 50% and introducing five all-new vehicles [3][13] - The company is focusing on correcting past strategic decisions by reintroducing key products and enhancing its product lineup to meet customer demand [40][57] - The strategy includes a strong emphasis on product launches, with plans for 10 major new products in 2025, including the Jeep Cherokee and Dodge Charger [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to top-line growth after seven quarters of declines, highlighting improved pricing power and competitive positioning [39][40] - The company is actively engaging with European policymakers to advocate for necessary reforms in the auto industry [9] - Management anticipates a stable pricing environment in the U.S. and is focused on achieving operational efficiencies to offset potential cost increases [77] Other Important Information - Stellantis is working on a strategic review that may lead to project cancellations and adjustments in product offerings, which could have limited cash impact in 2025 [96] - The company is monitoring the global chip supply situation closely, implementing daily management strategies to mitigate disruptions [90] Q&A Session Summary Question: Can you discuss the improvement of production capacity and pricing power? - Management highlighted a return to top-line growth and favorable pricing dynamics, correcting past strategic decisions to fill product gaps [39][40] Question: What are the key levers for improving free cash generation? - The primary driver for free cash flow improvement is expected to be volume growth in North America, with ongoing efforts to enhance savings and efficiencies [42] Question: Can you clarify the dynamics of free cash flow and working capital? - Management confirmed that the anticipated improvement in free cash flow is linked to volume growth, particularly in North America, and acknowledged the importance of managing working capital effectively [49][88] Question: What is the outlook for margins in Europe? - The company aims to improve margins in Europe through strategic product actions and regulatory engagement, despite facing challenges in the market [84][87] Question: How will the $13 billion investment impact cost structure and competitiveness? - The investment is expected to enhance production capacity and efficiency, with management confident in maintaining a stable pricing scenario [77][87]