Financial Data and Key Metrics Changes - Consolidated shipments for 2025 were 5.5 million units, up 1% year-over-year, with increases in South America, North America, and the Middle East and Africa [7] - Net revenues were EUR 153 billion, a decrease of 2% year-over-year, with an AOI margin of negative 0.5% reflecting early recovery stages and substantial net tariff expenses [7][8] - Industrial free cash flow showed outflows of EUR 4.5 billion for the full year, with H2 2025 industrial free cash flow of negative EUR 1.5 billion representing a 50% sequential improvement compared to H1 2025 [9][10] Business Line Data and Key Metrics Changes - North America saw a 39% increase in shipments and a 31% increase in revenues in H2 2025, driven by normalized inventory dynamics and higher sales [10] - In Enlarged Europe, H2 AOI decreased due to a higher LEV mix and net pricing decline amid a competitive environment [11] - South America experienced a decline in AOI due to increased costs, while the Middle East and Africa saw solid growth in shipments driven by increased production in Algeria [11] Market Data and Key Metrics Changes - U.S. market share increased year-over-year in January 2026, while European shares saw a sequential increase compared to H2 2025 [5] - The order portfolio in North America and Europe combined was up 46%, with North America up 150% and Europe up 18% [16] - South America maintained its number one share position, with the Ram Dakota launched in Argentina and set to launch in Brazil [24] Company Strategy and Development Direction - The company is focused on a decisive reset to put the customer at the center, aiming for profitable growth and execution in 2026 [4][18] - A $13 billion investment over four years is planned to improve market coverage and manufacturing utilization in the U.S., introducing five new vehicles and renewing the current lineup [17] - The company is integrating the Maserati business into regional segments to enhance operational efficiency and regional focus [13][54] Management's Comments on Operating Environment and Future Outlook - Management noted that Europe remains a tough environment with unclear regulations, but there is strong demand for STLA AutoDrive products, which will support profit building in 2026 [29] - In North America, market share is expected to continue increasing, with new products like the Jeep Cherokee and Charger Sixpack contributing to profitability [30] - The company anticipates a stable to slightly positive pricing environment in the U.S. while facing continued price pressure in Europe [82] Other Important Information - The company confirmed its 2026 financial guidance and will start reporting full-year earnings results on a quarterly basis [12] - A significant focus on quality improvements has been established, with a 50% improvement in North America and 30% in Europe for one-month service indicators [62] - The partnership with Leapmotor is expected to enhance competitiveness, particularly in electric vehicles, and support market reach in Europe and South America [90] Q&A Session All Questions and Answers Question: Will larger restructuring measures be needed in Europe to turn the business profitable? - Management noted a rebound in market share and strong demand for products, indicating that while Europe is challenging, there are opportunities for profit building in 2026 [29] Question: What is the outlook for operating leverage in North America? - Management acknowledged strong shipment growth but noted that operational issues had constrained production, which has now been resolved, leading to expected improvements in 2026 [34] Question: What are the market assumptions for revenue growth in 2026? - Management forecasts a slight decline in the North American market and flat conditions in Europe, with growth driven by new vehicle launches [43] Question: Should we expect North America and Europe to be in positive territory in 2026 in terms of AOI? - Management confirmed that North America is expected to be the largest contributor to profitable growth in 2026 [49] Question: What is the expected impact of CapEx in 2026? - Management confirmed that investments are expected to remain flat year-over-year, focusing on areas with the highest return potential [55] Question: How is quality trending currently? - Management reported significant improvements in quality metrics, with ongoing efforts to enhance quality through organizational changes and additional engineering hires [62]

Financial Data and Key Metrics Changes - Consolidated shipments for 2025 were 5.5 million units, up 1% year-over-year, with increases in South America, North America, and the Middle East and Africa [7] - Net revenues were EUR 153 billion, a decrease of 2% year-over-year, with an AOI margin of negative 0.5% reflecting early recovery stages and substantial net tariff expenses [7][8] - Industrial free cash flow saw outflows of EUR 4.5 billion for the full year, but H2 2025 showed a 50% sequential improvement compared to H1 2025 [9][10] Business Line Data and Key Metrics Changes - North America posted a 39% increase in shipments and a 31% increase in revenues in H2 2025, driven by normalized inventory dynamics and higher sales [10][11] - In Enlarged Europe, H2 AOI decreased due to a higher LEV mix and net pricing decline amid a competitive environment [11] - South America experienced a decline in AOI due to increased costs, while the Middle East and Africa saw solid growth in shipments [11] Market Data and Key Metrics Changes - U.S. market share increased year-over-year in January 2026, with European shares also seeing a sequential increase compared to H2 2025 [5] - The order portfolio in North America and Europe combined was up 46%, with North America up 150% and Europe up 18% [16] - South America maintained its number one share position, with the Ram Dakota launched in Argentina and set to launch in Brazil [24] Company Strategy and Development Direction - The company is focused on a decisive reset to put the customer at the center, aiming for profitable growth and execution in 2026 [4][18] - A $13 billion investment over four years is planned to improve market coverage and manufacturing utilization in the U.S., introducing new vehicles and renewing the current lineup [17] - The company is integrating the Maserati business into regional segments to enhance operational efficiency and regional focus [12][54] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging environment in Europe due to unclear regulations, but strong demand for STLA AutoDrive products is expected to support profit building in 2026 [29] - In North America, the company anticipates market share growth and new product launches to drive profitability, particularly with the HEMI V8 engine [30] - The company expects to see progressive performance improvements across all business KPIs in 2026 [25] Other Important Information - The company confirmed its 2026 financial guidance and will start reporting full-year earnings results quarterly [12] - A significant focus on quality improvements has been established, with over 2,000 new engineers hired to drive enhancements [15][63] - The company plans to address competitive pressures in pricing, particularly in Europe, while maintaining a stable pricing environment in North America [80] Q&A Session Summary Question: Need for larger restructuring measures in Europe - Management acknowledged the need for restructuring but highlighted strong demand and a large order portfolio as foundations for profit building in 2026 [29] Question: Operating leverage in North America - Management indicated strong growth in volume and pricing, with expectations for improved mix and profitability in 2026 [35] Question: Revenue growth outlook for 2026 - Management forecasted a slight decline in the North American market and flat conditions in Europe, with growth driven by new vehicle launches [43] Question: Positive AOI in North America for 2026 - Management confirmed that North America is expected to be the largest contributor to profitable growth in 2026 [49] Question: CapEx and investment levels - Management confirmed that investments are expected to remain flat year-over-year, focusing on areas with the highest return potential [55] Question: Quality development trends - Management reported significant improvements in quality metrics across regions, with ongoing efforts to enhance quality further [63]

Core Viewpoint - Stellantis and Tata Motors have signed a memorandum of understanding to explore further collaboration in manufacturing, engineering, and supply chain sectors in India and overseas markets, marking the 20th anniversary of their joint venture FIAPL [1][2][5]. Group 1: Collaboration Background - The joint venture FIAPL has produced over 1.37 million vehicles since its inception, employing nearly 5,000 people [1]. - The partnership has evolved over the years, with Tata leveraging its market channels to enhance Fiat's brand presence in India and gaining rights to independently develop and calibrate the 2.0-liter Multijet II diesel engine [3]. Group 2: Industry Context - The global automotive industry is undergoing significant transformation towards electrification and smart technology, with increasing consumer demand for environmentally friendly vehicles [4]. - The shift from traditional fuel vehicles to electric vehicles is accelerating, prompting automakers to invest heavily in R&D and production capacity [4]. Group 3: Strategic Focus Areas - The collaboration will focus on three key areas: manufacturing, engineering, and supply chain, aiming for comprehensive market engagement in India and abroad [6]. - The FIAPL factory, with an annual capacity exceeding 200,000 vehicles, will be central to optimizing production processes and introducing advanced manufacturing techniques [7]. Group 4: Future Opportunities - By sharing R&D resources, both companies aim to develop new models tailored to local market demands, such as a cost-effective SUV suitable for India's challenging road conditions [7]. - The partnership will also seek to integrate supplier resources and establish a joint procurement platform to enhance bargaining power and reduce costs [7]. Group 5: Long-term Challenges - The collaboration faces challenges in technology integration, cultural alignment, and geopolitical uncertainties, which could impact the success of their joint efforts [8]. - The potential for achieving synergistic benefits from this partnership remains to be seen, but it indicates a strategic direction in the evolving automotive landscape [8].

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]

Group 1 - Stellantis experienced a significant decline in automotive production in Italy, with a nearly 25% drop last year, highlighting challenges in revitalizing its domestic manufacturing amid political pressure to maintain local operations [1] - Total production, including vans, decreased by 20% year-on-year to 379,706 units, with passenger car production at 213,706 units, and a peak decline of 36% year-on-year noted by September 2025 [1] - The company plans to launch a new hybrid Fiat 500 model by the end of 2025 and commence production of a new Jeep Compass in southern Italy, which is expected to drive production recovery in 2026 [1] Group 2 - The demand for the all-electric Fiat 500 has not met expectations, prompting Stellantis to target an annual production of 100,000 hybrid Fiat 500 models to revitalize the Turin Mirafiori plant [2] - Production at Italian plants has nearly halved compared to a recent peak of over 750,000 units in 2023, with the new CEO Antonio Filosa assuring the government of the company's commitment to Italy while also investing heavily in the U.S. market [3] - Stellantis committed over €7 billion (approximately $8.2 billion) in orders to suppliers in Italy and invested €2 billion in its Italian production bases last year, although market demand recovery is essential for production increases [3]

Group 1 - Stellantis N.V. has hired over 1,000 workers for its Windsor Assembly Plant in Ontario, aiming to create a total of 1,500 new jobs to support increased manufacturing capacity for Dodge Chargers and Chrysler minivans [2][4] - The hiring initiative is part of plans to add a third shift at the Windsor facility early next year to meet expected demand [2] - Ongoing negotiations with the Canadian government are taking place regarding the relocation of Jeep Compass production from Brampton, Ontario, to Illinois, with accusations of violating a 2022 funding agreement [3] Group 2 - Nearly 240 workers from the Brampton facility have accepted transfer offers to relocate to Windsor, while those who decline will still receive 70% of their pay and health benefits [4] - Since 2022, Stellantis has reported investments totaling 7.9 billion Canadian dollars in Canada [4]

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, 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]

Core Viewpoint - Canadian auto workers' union Unifor strongly opposes Stellantis' plan to increase manufacturing in the US, which negatively impacts Canadian operations [1][5]. Group 1: Stellantis' Investment Plans - Stellantis plans to invest $13 billion to expand production in the US, including relocating Jeep production from the Brampton Assembly Plant in Canada to Illinois [2]. - The company intends to invest over $600 million to reopen the Belvidere Assembly Plant in Illinois for Jeep Cherokee and Jeep Compass production, with initial output expected in 2027 [3]. Group 2: Government and Union Response - Canada's Industry Minister Mélanie Joly expressed concern in a letter to Stellantis' CEO, emphasizing the company's prior commitment to maintain its Canadian operations in exchange for public funding [4]. - Unifor's leadership criticized Stellantis' plans, stating that Canadian auto jobs are being sacrificed and urging the federal government to leverage its position to protect these jobs [5][6].