Financial Data and Key Metrics Changes - Revenues rose by 10% year-over-year at the preliminary estimate midpoint, driven by an 11% increase in consolidated shipments [12] - AOI was negative in the range of EUR 1.2 billion to EUR 1.5 billion, with industrial free cash flow also negative, ranging from EUR 1.4 billion to EUR 1.6 billion [12] - The company announced EUR 22 billion worth of charges excluded from AOI, primarily related to product plans and resizing the EV supply chain [11] Business Line Data and Key Metrics Changes - Global shipments increased by 11% in H2 2025 compared to H2 2024, with North American shipments up by 39% [8] - The company launched 10 all-new products in 2025, including the Jeep Cherokee Hybrid and Dodge Charger i6 SIXPACK, which received positive market reception [7][10] - The order book in North America increased by over 150%, driven by demand for new Ram, Jeep, and Dodge products [9] Market Data and Key Metrics Changes - In Europe, the company retained segment leadership in the all-hybrids market and the profitable light commercial vehicle market [8] - Order intake in Europe increased by 13% in H1 2025 compared to H1 2024, with a 23% increase in Q4 2025 alone [9] - The company is experiencing growth in South America and the Middle East and Africa [8] Company Strategy and Development Direction - The company is undergoing a decisive reset to empower regional teams, improve stakeholder relationships, and enhance product plans to align with customer demand [4][5] - A significant investment of $13 billion is planned over the next four years in the U.S. to support new product launches [33] - The company aims to improve manufacturing execution and quality governance, with a focus on customer preferences driving the business strategy [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about early signs of recovery in H2 2025, with expectations for positive foundational growth in 2026 [5] - The company anticipates a return to positive industrial free cash flow by 2027, with net revenues expected to rise by a mid-single-digit percentage in 2026 [14][15] - Management acknowledged challenges in Europe due to competitive pressures but remains focused on improving operational performance [75] Other Important Information - The company has a strong balance sheet with approximately EUR 46 billion in industrial available liquidity, representing a ratio of 30% to net revenues [15] - The decision to not pay a dividend this year reflects the net loss, and the board has authorized the issuance of up to EUR 5 billion in hybrid bonds to maintain liquidity [15] Q&A Session Summary Question: Clarification on AOI and margin expectations - Management confirmed that they are not contemplating any equity raise and expects continuous improvement in AOI throughout 2026, driven by volume increases and operational efficiencies [24][26] Question: Need for drastic actions in Europe - Management emphasized a growth strategy in North America and Europe, with ongoing investments and product launches, while also focusing on industrial efficiency [32] Question: Hybrid bond rationale - The hybrid bond is intended to strengthen the balance sheet and protect the investment grade, with competitive costs expected [38] Question: Warranty provisions and cash outflows - Management does not expect warranty spend to increase in 2026 compared to 2025, with improvements in product quality anticipated [100] Question: Market share expectations in the U.S. - Management expressed confidence in growing market share in the U.S. due to new product launches and improving retail performance [58]