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    Stellantis records massive €22.2B hit, CEO says it's necessary for long term change

    Automaker absorbs huge costs tied to business restructuring and EV strategy overhaul as new leadership moves to correct past missteps.
    10 February 2026 by
    Stellantis records massive €22.2B hit, CEO says it's necessary for long term change
    Areeb Khan

    Life mein positive changes laane ke liye thode sacrifices karne padte hai. Kuch aisa hi scene Stellantis ke finances ke saath chal raha hai. Company ne February mein apne accounts present kiye, or saath hi apne business plan ka restructuring bhi present kiya, jisme second half of 2025 ke liye necessary costs or measures include kiye gaye hai.


    Inme se many of the things (or unke saath jo costs aati hai) North American market ke liye hi ki ja rahi hai. Wahan approach bilkul radical ho gaya hai, planned RAM 1500 BEV ko cancel kar diya gaya or istead V8 HEMI engine wale products launch karne ka decision liya gaya. Jaise ki RAM 1500 SRT TRX, jo iss year pehle announce hui thi, or saath hi Jeep Cherokee, jise specially US market ke liye redesign kiya gaya hai.


    Financial sacrifices are being made by Stellantis


    Image Courtesy: Motor.es


    Italian French conglomerate ne apna kaafi saara focus restructuring pe laga diya hai, especially US mein, jahaan 5 new models aa rahe hai or 5,000+ new jobs create ho rahi hai, jismein se 2,000 engineers already hire ho chuke hai, and Europe mein bhi.


    2025 ek big launch year raha, jismein FIAT Grande Panda, FIAT 500 Hybrid, Citroen C3 or C5 Aircross aaye, saath hi Jeep Compass ka bilkul new gen version bhi introduce hua.


    Clearly lagta hai ki past kuch years ke baad ab ye apne customers ka trust wapas gain karna chahte hai. The truth is, despite the image crisis Peugeot 2008 or 3008 compact or mid-size SUV segment mein kaafi good perform kar rahe hai, actually 2024 se bhi better. Aur Peugeot 208 ne Spain mein January 2026 mein best selling model ke form par start kiya, haan ye alag baat hai ki jo 2,000+ new registrations hai, unmein se kaafi sales 2025 ke end mein hi close ho chuki thi.


    An attempt that costs 22.2 billion


    Stellantis ne kuch major changes announce kiye hai, jinki wajah se company ko around €22.2 billion (Rs. 2,220 Crore) ka hit laga hai (adjusted operating income ko exclude kar ke). Isme se €14.7 billion (Rs. 1.56 lakh Crore) sirf US operations ko refocusing karne ke liye rakha gaya hai. Is amount mein €2.9 billion (Rs. 24,000 Crore) un projects par gaye jo cancel ho gaye, jaise electric RAM project. Phir €6 billion (Rs. 54,000 Crore) ka impact low sales volume or lower profit expectations ki wajah se aaya hai. Furthermore, next 4 years mein around €5.8 billion (Rs. 51,000 Crore) ke payments bhi expected hai.


    Aur €4.1 billion (Rs. 43,650 Crore) or rakha jaayega warranty contracts ke liye, because inflation increase ho rahi hai or kuch wrong decisions ki wajah se product quality down ho gayi thi. Ab company usko fix karne chahti hai, especially Toni Filosa ke CEO banne ke baad, matlab FCA division ab clearly control mein hai.


    Image Courtesy: Motor.es


    Other than this, €1.3 billion (Rs. 130 Crore) Europe mein workforce ko restructure karne ke liye use hoga, or €2.1 billion (Rs. 210 Crore) unki pure electric cars ki supply chain ko again set karne mein invest kiya jaayega.


    Correcting past miscalculations


    "Aaj jo charges announce hue hai, wo mostly isliye hai because hum energy transition ki speed ko thoda zyada hi overestimate kar gaye. Is situation mein hum kaafi car buyers ki real needs, budget or preferences se out of touch ho gaye. Saath hi, past mein operations execution bhi itna strong nahi tha, uska impact bhi reflect ho raha hai. Good thing is hamari new team gradually in sab issues ko fix kar rahi hai," Filosa ne kaha. 


    Humne apne business ke every aspect ko achhe se analyze kiya hai or jo changes important the wo implement kar rahe hai, Stellantis ki all passion or creativity ke saath. 2025 ke jo product initiatives launch kiye gaye the unko customers ka kaafi positive response mila hai, as a result orders increase hue or revenue growth wapas track par aa gayi hai," Stellantis ke CEO ne kaha.


    The PureTech case is beginning to come to an end


    Image Courtesy: Motor.es


    Kaafi logon ko abhi bhi PureTech wala case remember hoga, jisme Europe ke outside mein millions of engines affect ho gaye the, or kuch toh abhi tak solve bhi nahi hue hai, Stellantis ne kuch time pehle ek platform launch kiya jahan affected owners register kar sakte hai or apni car repair karwane ke liye warranty le sakte hai.


    Every case is varies in each case, but gradually solutions nikal rahe hai or kaafi long wait ke baad ab end mein light show ho rahi hai. Wet timing belt se directly related na hone wale cases mein bhi, jaise oil leaks ya phir wo models jo platform par mention kiye gaye specific period ke nahi hai, companies bina kisi cost ke engine replace kar rahi hai. Than normal situation mein user ko €8,000-€9,000 (Rs. 8.62-9.69 lakh) ka heavy bill pay karna padta.


    Expectations for 2026 and beyond


    2026 tak company ka adjusted operating income around €1.6  billion (Rs. 14,400 Crore) tak reach karne ka estimate hai, or cash flow bhi better hota rahega, jo 2027 tak or grow karega. Agar ye sab plan ke according hua, then ye kaafi important hoga so that company ke paas enough resources ho research, development or better technology launch karne ke liye, sirf apni rather 14 brands mein same old cars ko thoda sa recycle karne ke. 







    News Source: Motor.es
    in Auto Industry

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