In this articleSTLA2026 Jeep CherokeeMichael Wayland / CNBCLOS ANGELES – Stellantis is counting on the return of the Jeep Cherokee to help lead a U.S. turnaround for the SUV brand and embattled automaker. The Cherokee returns after a three-year hiatus, rejoining the compact and midsize vehicle markets, which represent the largest segments in the U.S. It also marks Jeep's first traditional hybrid model and its most fuel-efficient, gas-powered vehicle ever in the U.S."This is a critical vehicle for us," Richa ...

Core Insights - General Motors (GM) anticipates a recovery in North America EBIT margins to the 8-10% range by 2026, up from 6.8% in 2025, driven by lower costs and improved product mix [1][10] Group 1: Margin Recovery Drivers - Lower electric vehicle (EV) losses are expected to significantly contribute to margin recovery, with GM projecting reduced costs associated with excess EV capacity and slower demand in 2025 [2] - A $1 billion year-over-year benefit from lower warranty expenses is anticipated in 2026, as warranty cash outflows stabilize and accruals align with cash trends [3] - Regulatory relief is projected to yield savings of $500-$750 million from reduced compliance costs related to emissions and fuel economy regulations, further supporting margins [3] Group 2: Product and Market Dynamics - GM benefits from strong demand for full-size pickups, SUVs, and profitable crossovers, maintaining low inventory and incentives to protect margins [4] - The company expects a decline in net tariff impact year-over-year, with gross tariff costs remaining high but offset by pricing actions and cost reductions [5] Group 3: Competitive Landscape - Ford faces challenges with uneven margin recovery due to elevated EV-related losses and warranty costs, despite profitability in its traditional internal combustion engine (ICE) business [7] - Stellantis is focusing on rebuilding margins through new product launches and a significant investment in domestic production, but near-term margins are pressured by higher incentives and warranty costs [8] Group 4: Stock Performance and Valuation - GM shares have increased by 76% over the past year, outperforming the industry [9] - The company appears undervalued with a forward price/earnings ratio of 6.68 compared to the industry's 81.6 [12]

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 in the range of 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 - The company launched 10 all-new products in 2025, including the return of the HEMI V8 to the Ram 1500 and the rollout of the Smart Car lineup in Europe [7][9] - Global shipments increased by 11% in H2 2025 compared to H2 2024, with North American shipments up by 39% [8] - 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 [8] - The company is maintaining 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. for 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 expects continuous improvement in AOI throughout 2026, driven by volume increases and operational efficiencies [24] - The company anticipates a return to positive industrial free cash flow in 2027, with net revenues expected to rise by a mid-single-digit percentage in 2026 [15] - Management acknowledges competitive pressures in Europe but remains optimistic about market share growth in North America [76] 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 expect continuous improvement in AOI driven by volume and mix adjustments [24][26] Question: Need for drastic action in Europe - Management emphasized a growth strategy in North America and Europe, with a focus on product launches and efficiency improvements [32] Question: Hybrid bond rationale - The hybrid bond is intended to strengthen the balance sheet and protect the investment grade rating, with competitive costs expected [38] Question: Warranty provisions and cash outflows - Management does not expect warranty spend to increase in 2026 compared to 2025, indicating improvements in product quality [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 improved retail performance [58]

Stellantis (STLA) reported a massive charge of 22 billion euros ($25.94 billion) as it resets its EV business. Cash payments of 6.5 billion euros ($7.7 billion) will be paid out over the next 4 years, and charges totalling 14.7 billion euros ($17.34 billion) will be taken against the company’s 2025 second half results, Stellantis said. The charges won’t impact Stellantis adjusted operating income (AOI), however. “The charges announced today largely reflect the cost of over-estimating the pace of the en ...

Preliminary Financial Results H2 2025 SAFE HARBOR STATEMENT This document, in particular references to "FY 2026 Financial Guidance", contains forward looking statements. In particular, statements regarding future financial performance and the Company's expectations as to the achievement of certain targeted metrics, including revenues, industrial free cash flows, vehicle shipments, capital investments, research and development costs and other expenses at any future date or for any future period are forward-l ...

Core Insights - Stellantis is undergoing a significant business reset to align with customer preferences and support profitable growth, with a new strategic plan to be communicated in May 2026 [2][4]. Financial Performance - Preliminary financial results for H2 2025 show improved Net Revenues and Industrial Free Cash Flow (IFCF), although Adjusted Operating Income (AOI) and Net Income were impacted by specific items [2][14]. - H2 2025 Net revenues are estimated between €78 billion and €80 billion, with a projected Net loss of €19 billion to €21 billion [15]. Strategic Shift - The company is focusing on a broader range of vehicles, including electric vehicles (EVs), hybrids, and advanced internal combustion engines, to meet diverse customer needs [3][4]. - A total of approximately €22.2 billion in charges was recorded for H2 2025, primarily due to realigning product plans with customer preferences and new emission regulations [10][11]. Operational Changes - Organizational changes include empowering regional teams to make decisions based on local customer knowledge and creating a more cost-efficient supply chain [6][10]. - Stellantis has seen a return to positive volume growth, with H2 2025 consolidated shipment volume reaching 2.8 million units, an increase of 277 thousand units or 11% year-over-year [7][36]. Market Position - Stellantis maintained a 7.9% market share in the U.S. for H2 2025, a 60 basis point increase sequentially, and retained its 2 market share position in Enlarged Europe [8][10]. - Customer order intake in Enlarged Europe increased by 13% year-over-year in H2 2025, with Q4 2025 orders up 23% year-over-year [8]. Quality Improvements - Initial quality management improvements have led to a reduction in reported vehicle issues by over 50% in North America and over 30% in Enlarged Europe since the beginning of 2025 [9]. Future Guidance - The company anticipates improvements in Net revenues, AOI margin, and cash generation in 2026, with a gradual sequential improvement expected throughout the year [18][19]. - Stellantis has suspended its dividend for 2026 in light of the 2025 Net loss and authorized the issuance of up to €5 billion in non-convertible subordinated perpetual hybrid bonds to maintain a strong balance sheet [16][17].

Core Insights - Stellantis is undergoing a strategic reset to align its business with customer preferences, focusing on a diverse range of vehicles including EVs, hybrids, and advanced internal combustion engines [2][4] - The company reported preliminary financial results for H2 2025, showing improved net revenues and industrial free cash flow, despite a net loss due to specific charges [10][13] Business Strategy and Changes - The reset involves a thorough assessment of the company's strategy and costs to better meet customer needs, with a new strategic plan to be communicated in May 2026 [2][4] - Key actions taken include re-empowering regional teams for decision-making, creating a cost-efficient supply chain, and reallocating capital to support electrified vehicle programs [6][10] Financial Performance - H2 2025 consolidated shipment volume reached 2.8 million units, an increase of 277 thousand units or 11% year-over-year, with North America showing the strongest growth at 39% [7][30] - Preliminary net revenues for H2 2025 are estimated between €78 billion and €80 billion, with a net loss projected between €19 billion and €21 billion [14] Market Position - Stellantis maintained a 7.9% market share in the U.S. for H2 2025, a 60 basis point increase sequentially, and retained its 2 market share position in Enlarged Europe [8] - Customer order intake in Enlarged Europe increased by 13% year-over-year in H2 2025, with Q4 orders up 23% year-over-year [8] Quality Improvements - The company has seen a significant reduction in vehicle issues reported in the first month of service, with a decrease of over 50% in North America and over 30% in Enlarged Europe since early 2025 [9] Charges and Financial Adjustments - The reset resulted in charges of approximately €22.2 billion for H2 2025, including €14.7 billion related to realigning product plans with customer preferences and new emission regulations [10][12] - The company will not pay a dividend in 2026 due to the net loss in 2025 and has authorized the issuance of up to €5 billion in non-convertible subordinated perpetual hybrid bonds [15][16] Future Guidance - Stellantis anticipates improvements in net revenues, adjusted operating income margin, and industrial free cash flows in 2026, with a mid-single-digit percentage increase in net revenues projected [17][19] - The company expects to achieve positive industrial free cash flow in 2027, despite ongoing regulatory uncertainties [18][19]

Core Insights - FCA US LLC reported a total of 332,321 vehicle sales in Q4 2025, marking a 4% increase compared to Q4 2024, and this is the second consecutive quarter of sales growth in the U.S. [2][4] - The company achieved total sales of 1,260,344 vehicles for the full year 2025, which represents a 3% decrease year over year [4]. Sales Performance - December 2025 sales reached 121,170 vehicles, also reflecting a 4% increase compared to December 2024 [2]. - Jeep brand experienced its best December retail sales in three years, contributing to year-over-year total sales growth [7]. - Ram brand retail sales increased by 17% for the calendar year, with the Dodge Durango achieving its best total sales year since 2005, up 37% year over year [7]. Investment and Future Plans - The company announced a $13 billion investment over four years, the largest in its 100-year history, aimed at expanding U.S. production by 50% and launching five new vehicle models along with 19 product actions [3]. - This investment is expected to create over 5,000 new direct jobs across plants in Illinois, Ohio, Michigan, and Indiana [3]. Model-Specific Highlights - The Jeep Gladiator saw a remarkable 93% increase in Q4 total sales year over year, while the Wagoneer experienced a 67% increase in total sales for Q4 2025 compared to Q4 2024 [8]. - The Ram 1500's total sales increased by 23% in Q4 2025 compared to the same period in 2024, with retail sales improving across all nameplates [8]. - The Chrysler brand celebrated four months of consecutive retail sales growth, with the Pacifica minivan retail sales increasing by 23% [13].

Core Insights - Stellantis is reviving the V-8-powered Ram 1500 SRT TRX pickup truck, which will be available late in 2026 for approximately $100,000, as part of a U.S. sales turnaround plan [1][2][5] Group 1: Product Details - The 2027 Ram 1500 SRT TRX features a supercharged 6.2-liter "Hellcat" engine producing 777 horsepower and 680 foot-pounds of torque, making it the "fastest and most powerful production gas pickup truck in the world" with a 0-60 mph time of 3.5 seconds and a top speed of 118 mph [2][4] - The starting price for the TRX is $99,995, excluding a $2,595 destination fee, bringing the total to $102,590, compared to the initial TRX price of $71,690 in 2020 [4] Group 2: Strategic Direction - The return of the TRX aligns with CEO Tim Kuniskis's turnaround strategy, which includes over 25 announcements aimed at revitalizing Stellantis's U.S. sales, which have declined significantly in recent years [3][5] - Kuniskis has shifted the company's focus back to V-8 engines, reversing previous plans to phase them out due to stricter fuel economy regulations that have since been relaxed [5][6] Group 3: Sales Performance - Stellantis's U.S. sales fell from the fourth to the sixth position among automakers from 2021 to 2024, with a 6% decrease in sales through the third quarter of the previous year, and an expected total of 1.25 million sales for the year, down 4.4% from 2024 [6][7] - The company aims to capture market share in a challenging environment, as auto sales are projected to remain flat or decline in 2026 [7][8] Group 4: Other Brand Strategies - Jeep is also undergoing a turnaround strategy, with plans to reposition pricing, models, and features to address years of declining sales since 2018 [9][10] - The Jeep reset plan aims to streamline the product lineup and improve profitability, with new models like a resurrected Cherokee and an all-electric Recon expected to contribute to growth [11][12]

Core Viewpoint - Stellantis is shifting its strategy under new CEO Antonio Filosa, prioritizing sales growth over profits by expanding low-margin fleet sales and investing in budget models to regain market share in North America and Europe [1][2]. Group 1: Strategic Changes - Filosa's immediate goal is to exceed conservative analyst expectations for sales and revenue this year, following a significant drop in U.S. sales under the previous CEO [1][2]. - The new strategy includes restarting fleet sales in the U.S., which target rental companies and government agencies, despite their lower profit margins [3][11]. - Filosa is also addressing long-standing issues by evaluating the future viability of Stellantis's 14 brands, including Fiat and Maserati [3][19]. Group 2: Market Performance - Initial results show that Stellantis's North American sales increased by 6% year-over-year in Q3, marking the first growth in eight quarters [2]. - Stellantis's market share in the U.S. has fallen below 8%, a record low compared to 12.5% in 2020 [5]. - The company plans to invest $13 billion in the U.S. market to boost sales and counteract negative impacts from tariffs [10]. Group 3: Long-term Goals and Challenges - Filosa has abandoned aggressive electric vehicle sales targets set by the previous CEO, focusing instead on core brands like Jeep and budget models [8][10]. - The company aims for a long-term adjusted operating profit margin of 6%-8%, although analysts predict it will remain in the low single digits for the next few years [13]. - There is a recognition among major investors that fundamental changes will take years, and they are not pressuring for immediate profit margin improvements [12][15]. Group 4: Brand Integration and Market Strategy - Filosa is assessing the potential consolidation of Stellantis's brands, particularly in Europe where market overlap is significant [19]. - The company faces challenges in regaining market share in Europe due to brand redundancy and competition [19]. - The next few months are critical for Stellantis to demonstrate recovery in the U.S. market, which could provide more time for strategic planning [19].